Cryptocurrency mining leads to a power outage in Kazakhstan

Kazakhstan is experiencing power outages due to cryptocurrency miners.

If you want to get into cryptocurrency, there are two completely different ways. You can trade these currencies, i.e. buy or sell goods on an exchange and accept cryptocurrencies as payment, or you can mine them. At the same time, the second option is very, very energy-intensive. Kazakhstan has recently experienced this burden.

Kazakhstan in the throes of a blackout

This means that if you want to mine cryptocurrency on your own from the comfort of your home, the transaction will most likely not be profitable. And if you were looking for an example to fully understand how much power a cryptocurrency can consume for mining, know that Kazakhstan is currently facing repeated power outages and according to The Financial Times, cryptocurrency mining is partly responsible for this critical situation.

The British Daily newspaper reports that local power grid operator KEGOC said it was starting to ration electricity to 50 registered miners in the country after consumption caused blackouts at three power stations in October. According to government statements, demand for electricity increased by 8% in 2021, compared to 1-2% traditionally.

Because of cryptocurrency miners

This exceptional situation has also led to numerous power outages in six regions of the country since October. According to authorities, this increase in demand for electricity could be due to tighter regulation of cryptocurrency mining in China, changes that have forced mining farms to move their operations to other nearby countries such as Kazakhstan, where electricity is much more affordable.

Unfortunately, there is no doubt that cases like this will multiply in the future, and this will happen in all four corners of the globe, as developed countries take precautions against minors, and developing countries represent a real El Dorado due to the cost of their electricity.