Rampant Crypto Mining in Kazakhstan Has Caused Power Shortages

Immense energy consumption has long been attributed to cryptocurrency mining operations, especially in massive computer farms. With more and more looking into the potentially lucrative business, Kazakhstan is now experiencing power shortages due to an overwhelming demand through its numerous crypto mining warehouses in the country.

According to the country’s energy ministry, the demand for electricity surged by 8% in 2021 alone, as compared to the usual 1% or 2% annual increases. The sudden power draw has even led to blackouts across six of the nation’s regions since October. The curb the effect of the crypto mining farms, Kazakhstan’s grid operator KEGOIC has now imposed rationing policies for 50 of its registered miners, cutting off their supply first if grid failures occur.

On top of this, the country’s government itself is trying to tackle the energy shortages by asking Russian energy companies for help. The latter will supplement Kazakhstan’s power grid and the cost relating to that will be charged to registered minors as a compensation fee.

Elsewhere in crypto-related news, Japan will be testing a bank-backed cryptocurrency in 2022.
Source: Read Full Article