The departure of Bitcoin miners from China to Kazakhstan has added to the nation’s energy shortage, which the nation’s leader has recommended be alleviated through the use of nuclear energy sources.
According to Kazakhstan’s Ministry of Energy, Bitcoin miners will be responsible for an 8% rise in residential electricity use from now until the end of 2021.
Per the statistics from the Financial Times, the UK has acquired at least 87,849 pieces of cryptocurrency mining equipment from Chinese enterprises so far this year as a result of China’s assault on cryptocurrency mining.
Per the Kazakhstan Energy Grid Operating Unit, the large rise in demand has resulted in a shortfall in domestic electrical supply, which has contributed to the unreliability of energy services in the country.
Kazakhstan’s Stance On Bitcoin Mining
At a conference with bankers on Nov. 19, President Tokayev stated that he believes the development of a nuclear power station will help alleviate the strain on his country’s energy grid.
He said that looking towards the future, they may have to start making an unpleasant judgment about the development of a nuclear power station.
While Tokayev did not explicitly link the idea to the usage of Bitcoin mining capacity, failing to retain miners in the country might risk the projected $1.58 billion in tax income that miners contribute to the national coffers.
The President of Kazakhstan, Kassym-Jomart Tokayev, gave his views on the condition of the nation’s crypto business earlier this month in Almaty. The address was uploaded on the President of Kazakhstan’s official website.
He remarked that cryptocurrencies are a truth that cannot be disregarded. That is why it is critical to assess their effect on the contemporary financial system.
He stressed that creating a balanced regulatory framework for the construction of cryptocurrency exchange platforms in the nation should continue. Otherwise, they are the world’s second-largest cryptocurrency [Bitcoin] mining country, with virtually no financial gains.
Miners’ Views In The Nation
Power problems have already compelled the Bitcoin mining platform Xive to abandon its operations in the country. Didar Bekbau, the co-founder of Xive, stated in a tweet on November 24 that his company’s mining operation had been forced to cease owing to “limited electrical supplies from the grid.”
Little sad to shut down our mining farm in south KZ. Last container is ready to be sent. So much work, people, hopes are ruined. Country risk played out pic.twitter.com/J8ZMg6GeUI
— Didar (@didar_bekbau) November 24, 2021
Kazakhstan is presently home to 50 crypto mining firms that are registered, with an unspecified number of unlicensed operations.
Building new nuclear power plants is a significant choice in a nation that has seen catastrophic radioactive fallout as a result of Soviet weapons testing while under Soviet rule.
Kazakhstan’s last nuclear power facility, which was decommissioned in 1999, was a disaster. At the moment, fossil-fuel-burning power plants provide around 88% of Kazakhstan’s electricity.