Kazakhstan Turns To Nuclear Solutions To Cope With Bitcoin Mining Energy Crisis By BTC Peers

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© Reuters. Kazakhstan Turns To Nuclear Solutions To Address Bitcoin Mining Energy Crisis

The migration of miners from China to Kazakhstan has caused an energy crisis in the Central Asian country. Interestingly, the president is looking to use nuclear power to solve the problem.

Kazakhstan’s Energy Ministry suggests that Bitcoin miners are responsible for the 8% increase in national electricity consumption throughout 2021. According to Financial Times data, the Asian nation received this year no less than 87,849 Chinese companies’ Bitcoin mining machines in the wake of the Chinese crackdown. on crypto mining.

The Kazakhstan power grid operating company believed that the remarkable increase in demand led to a shortfall in domestic electricity supply, which also led to unreliable power services.

Kazakh President Tokayev told bankers at a meeting on November 19 that he believed the creation of a nuclear power plant would help reduce the load on his country’s power infrastructure.

Looking to the future, we will have to make an unpopular decision regarding the construction of a nuclear power plant. While Tokayev insists on moving his proposal away from the use of Bitcoin mining energy, the estimated $ 1.58 billion tax revenue these miners generate could be at risk if the miners start leaving the region.

Power shortages have already pushed the Bitcoin Xive mining market out of Kazakhstan. Didar Bekbau, the co-founder of Xive, said in a tweet that he had to shut down his company’s mining farm due to “the grid’s restricted electricity supply.”

A little sad to close our mining farm in southern KZ. The last container is ready to be sent. So much work, people, and hopes are ruined. The country risk played out pic.twitter.com/J8ZMg6GeUI

– Didar (@didar_bekbau) November 24, 2021

Kazakhstan is currently home to 50 registered crypto mining companies, several of which are unregistered. The country, which suffered severe nuclear fallout from weapons testing during the Soviet occupation, is seriously considering building new nuclear power plants. Kazakhstan’s last nuclear power plant ceased to operate in 1999.

At present, around 88% of Kazakhstan’s electricity is produced from fossil-fueled power plants, and the government is doing its best to fix it.

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