Crypto mining in Kazakhstan leads to energy shortage
If you want to get cryptocurrency, there are two main ways. You can trade it, meaning you buy it on an exchange or sell a product and accept cryptocurrencies as payment, or you can mine for it. However, the problem with mining is that it is very energy intensive.
This means that if you are trying to do it yourself at home, it may not necessarily be more cost-effective. In fact, to prove how much energy cryptocurrency mining consumes, it appears that in Kazakhstan, the country is suffering from an energy shortage, according to the Financial Times, cryptocurrency mining is partly to blame.
The post notes that local electric grid company KEGOC said it will begin rationing electricity for 50 registered miners in the country after their use included an emergency shutdown mode at three power plants in October. According to the government, they have estimated electricity demand has jumped 8% in 2021 so far, versus 1-2% they would typically see.
This has also led to power outages in six districts since October. According to the officials, it has been suggested that the jump in energy demand may be due to China’s crackdown on cryptocurrency, which has forced mining companies to relocate their operations to other countries such as Kazakhstan where electricity is relatively inexpensive.
failed to. Read more about cryptocurrency. Source: engadget