Cryptocurrency Miners Are Facing Against An Electricity Problem

Cryptocurrency miners are facing against an electricity problem. Miners in the USA and Kazakhstan are in a difficult situation.

China, which has a 65 percent share in Bitcoin mining, has reported that it has banned cryptocurrency mining. Thereupon, cryptocurrency miners who migrated to Kazakhstan faced the electricity problem. China, which introduced a cryptocurrency ban earlier this year and banned cryptocurrency-related transactions in September, has launched an investigation into cryptocurrency miners. Cryptocurrency miners, which continue their activities in different countries, especially the USA and Kazakhstan, are going through a difficult period due to the electricity problem. According to the Financial Times, cryptocurrency miners in Kazakhstan began to encounter frequent power outages. Demand for electricity in Kazakhstan due to cryptocurrency mining increased by about 8 percent in 2021. It is estimated that there are more than 87,849 cryptocurrency mining devices in Kazakhstan. According to data from the University of Cambridge, the country currently ranks second just behind the United States as one of the top crypto mining hotspots. In recent months, authorities have declared that Kazakhstan's most important coal-fired power stations are facing an emergency. Power plants, which were deactivated due to the emergency, prompted the Ministry of Energy of Kazakhstan. The Ministry of Energy of Kazakhstan, which first announced that it would impose a 100 MW quota on cryptocurrency mining farms for two years, had to step back due to economic reasons. For cryptocurrency mining in Kazakhstan, certain conditions must be met and the miners must be registered. Authorities announced that the electricity problem was caused by unregistered cryptocurrency miners. Starting from 2022, Kazakhstan announced that it will make payments to individuals and institutions that carry out mining activities in accordance with the law.