Kazakhstan might shut down Bitcoin mining

    28 Sep 2021
    6 Views

    Kazakhstan, which became a Bitcoin mining hub in the wake of the Chinese crypto miner exodus, might temporarily have to shut Bitcoin mining operations in certain regions, as the country is facing an electricity crunch in South Kazakhstan that intensifies in winter.

    According to CoinGape, Kazakhstan’s share of the world’s Bitcoin mining rose 6x this April, as new anti-crypto policies of China forced the major part of Bitcoin miners to relocate to other countries with abundant energy supplies. China had the biggest Bitcoin mining share with over 75% market dominance, but it fell sharply post April, as a majority of the miners have already moved outside the country.

    The Bitcoin network’s hashrate dropped by half post the Chinese exodus, and yet it has returned to pre-Chinese crackdown levels, suggesting the most miners have already resumed their mining operations again.

    Some countries with legal Bitcoin mining operations already faced the electricity crisis this year. For instance, the Iranian government has legalized BTC mining in the country as a way to help its declining economy and fight against trade sanctions. But, the government soon realized that illegal miners were exploiting limited energy resources leading to several blackouts in the state. As a result, the government announced a temporary ban on Bitcoin mining to ensure there is ample electricity throughout the hot summer.

    Following Iran’s lead, Kazakhstan might have to impose a temporary Bitcoin mining ban in southern regions to ensure a stable electricity supply during the cold winter.

    Leave a Reply

    Your email address will not be published. Required fields are marked *