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The Financial Times reported that there are widespread electricity shortages in the country due to a surge in mining. China has cracked down on the use ofCryptocurrencies and banned the use ofCryptocurrencies in September, which has led to an overload of the energy grid in Kazakhstan.
There are over 87,000 mining rigs that have made their way from China to the other side of the world.
According to the Financial Times, the demand for electricity in the country has gone up by eight percent since the beginning of the year. The Financial Times estimates that over 87,849 mining rigs have traveled from China to the other side of the world. According to data from the University of Cambridge, the country is one of the hottest places to mine cryptocurrencies.
Three of the most vital coal-fired power plants in the country were forced to shut down. The country's Ministry of Energy was going to restrict new mining farms from using more than 100megawatts for two years, but later walked back on this limitation for lawful miners.
According to the Financial Times, the KEGOC warned that it will begin rationing power to 50 government-registered miners to help mitigate power shortages. The power crunch is said to be the result of an increase in grey miners who are not registered. The experts estimate that these miners are responsible for consuming 1200 megawatts of the country's strained power grid.
In order to help ease power shortages, and to distinguish registered miners from gray ones, the government of Kazakhstan will start making legitimate miners pay up. The country plans to charge legitimate miners a fee. The Russian energy company Inter RAO has agreed to provide an extra boost of power to the country during the cold winter months.
It was sad to close our mining farm in south KZ. The last container is ready to leave. Hopes are ruined by so much work. Country risk played out.
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Didar wrote: "November 24, 2021."
The southern part of the country is low on power plants, and the main grid sometimes struggles to deliver power to the region. Due to the energy crunch, over 2,500 mining machines were forced to shut down. Didar Bekbau, the co- founder of the company, posted a video of mining rigs in the back of a truck. Bekbau writes that it was sad to shut down the mining farm. Hopes are ruined by so much work.
There are energy issues related to cryptocurrencies. Iran, which also has a system for licensed and unlicensed miners, banned cryptocurrencies mining for four months in May as an attempt to stave off power cuts. Texas has cheap power costs and relaxed regulations that are making it an attractive place to work in the digital space. Texas experienced a major power failure earlier this year, which is concerning as experts expect the demand for electricity to reach over 5,000MW.
