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Kazakhstan Prevent Power Supply to Crypto Miners
Kazakhstan was forced to take drastic measures due to a massive power outage.
Yesterday, Kazakhstan, Kyrgyzstan, and Uzbekistan experienced a major power outage, which could redraw the crypto mining map once more.
So, what happened?
On Tuesday, January 25, a massive power outage caused a total blackout in Kazakhstan's south, most of Kyrgyzstan, and eastern Uzbekistan. According to TASS, the power outage also affected the capitals of Kyrgyzstan and Uzbekistan.
Because the energy systems of these former Soviet republics are interconnected, the outage caused multiple problems.
According to the Cambridge Bitcoin Electricity Consumption Index, Kazakhstan's average monthly hashrate share in August 2021 was 18.10 percent, placing the country second only to the United States in Bitcoin mining.
This could change soon, as Kazakhstan's miners have already been cut off from power until the end of January. Miners have reportedly threatened to leave Kazakhstan if the power grid is not restored.
The World Is Becoming More Unfavourable to Crypto Mining
The United States, Kazakhstan, and Russia are the top three Bitcoin mining countries. Recent regulatory developments appear to be concerning.
Fitch Ratings recently expressed concern in the United States that cryptocurrency mining could pose a risk to power utilities.
In Russia, the central bank announced its intention to outlaw cryptocurrency mining (although it looks that the Russian Ministry of Finance is against this idea).
Miners in Kazakhstan have already been disconnected from power, and it remains to be seen whether the industry will resume normal operations in early February.
Kazakhstan has recently experienced unrest, and it may be more politically expedient to blame the outage on miners rather than looking for other causes. Mining regulatory risks in Kazakhstan have clearly increased in recent days.
Miners require access to low-cost, dependable electricity, and the number of countries that can provide this service is limited. At this point, it appears that the United States' share of global crypto mining will grow, making mining particularly vulnerable to any U.S. regulatory action.
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By Crypto PiratesKazakhstan was forced to take drastic measures due to a massive power outage.
Yesterday, Kazakhstan, Kyrgyzstan, and Uzbekistan experienced a major power outage, which could redraw the crypto mining map once more.
So, what happened?
On Tuesday, January 25, a massive power outage caused a total blackout in Kazakhstan's south, most of Kyrgyzstan, and eastern Uzbekistan. According to TASS, the power outage also affected the capitals of Kyrgyzstan and Uzbekistan.
Because the energy systems of these former Soviet republics are interconnected, the outage caused multiple problems.
According to the Cambridge Bitcoin Electricity Consumption Index, Kazakhstan's average monthly hashrate share in August 2021 was 18.10 percent, placing the country second only to the United States in Bitcoin mining.
This could change soon, as Kazakhstan's miners have already been cut off from power until the end of January. Miners have reportedly threatened to leave Kazakhstan if the power grid is not restored.
The World Is Becoming More Unfavourable to Crypto Mining
The United States, Kazakhstan, and Russia are the top three Bitcoin mining countries. Recent regulatory developments appear to be concerning.
Fitch Ratings recently expressed concern in the United States that cryptocurrency mining could pose a risk to power utilities.
In Russia, the central bank announced its intention to outlaw cryptocurrency mining (although it looks that the Russian Ministry of Finance is against this idea).
Miners in Kazakhstan have already been disconnected from power, and it remains to be seen whether the industry will resume normal operations in early February.
Kazakhstan has recently experienced unrest, and it may be more politically expedient to blame the outage on miners rather than looking for other causes. Mining regulatory risks in Kazakhstan have clearly increased in recent days.
Miners require access to low-cost, dependable electricity, and the number of countries that can provide this service is limited. At this point, it appears that the United States' share of global crypto mining will grow, making mining particularly vulnerable to any U.S. regulatory action.
Support us!