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This year, power shortages have been plagued by the booming crypto mining industry in Kazakhstan. A media report showed that some miners, including those who moved in to crack down on the industry in China, are now seeking to relocate to destinations with more stable energy supply, such as the United States.
Due to power generation problems in Kazakhstan, miners shut down crypto farms
Since the establishment of the Chinese government, Kazakhstan has become a hot spot for crypto mining attack Fight against Bitcoin miners in May. This Central Asian country maintains its electricity price ceiling and is a major producer of fossil fuels. However, its neglected infrastructure and insufficient power generation capacity have failed to meet the rapidly increasing power demand needed to power energy-consuming coin minting facilities.
The authorities have blame Growing deficits-consumption surged by 7% in the first three quarters of this year-to the rapidly growing mining industry data centerAnd the legislators have suggested Introduce higher electricity bills for miners. Representatives of the industry complained about treatment they considered unfair. “They make mining a scapegoat,” Didar Bekbauov, founder of local mining hosting company Xive, said on social media in early December.
Nikkei Asia pointed out in a report that the executive made a comment on Twitter after Xive was forced to shut down its main facilities in southern Kazakhstan after a sudden power outage last month.The company is still operating another mine in the country, but at the same time it is exploring options to transfer some of its operations to the United States
In November, the Kazakhstan Data Center Industry and Blockchain Association reached an agreement with the country’s grid operators. Koga, To ensure uninterrupted power supply for registered miners. When the state-owned utility company failed to fulfill part of its transaction, the mining company began to close its facilities in the country. Bitfufu, supported by another large crypto farm operator Bitmain, has closed its crypto farm in Kazakhstan and is moving to the United States.
Although restrictions imposed by power distribution companies have affected regulated crypto mining operations, small crypto farms in the shadow economy continue to mint digital currencies in basements and garages. “Gray miners” are burning large amounts of electricity, which poses another challenge to the government of Nur Sultan. “Unfortunately, it is difficult to get rid of them,” Alan Dorjiyev, chairman of the Crypto Industry Association, told Nikkei Shimbun.
Initially, Kazakhstan welcomed cryptocurrency miners and took measures adjust The department passed legislation. Estimates released in October indicate that the country is expected to inject approximately US$1.5 billion and more than US$300 million in taxes into its economy in the next five years. A new tax of $0.0023 per kilowatt hour of electricity used by registered crypto mining companies will be imposed in January 2022. Kazakhstan also plans to build power plants with a total generating capacity of 3,000 megawatts in the next few years, expand the share of renewable energy sources in its energy structure, and is considering nuclear energy.
Do you think Kazakhstan will try to solve its power supply problem and provide enough power for its crypto mining industry? Tell us in the comments section below.
Image Source: Shutterstock, Pixabay, Wikimedia Commons
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