This country no longer has enough electricity for its inhabitants because of Bitcoin

Arrested precipitously at the beginning of the summer, the Chinese domination of Bitcoin mining was totally reversed, the fault of Beijing’s measures aimed at wiping out any decentralized cryptocurrency in its territory. In the space of five weeks, between June and July, the 40% share of China are totally erased. The United States benefited from the migratory movement, as the country, motivated by the state of Texas, seized the top spot.

As shown in the graph below, the movement of Bitcoin miners, driven out of China, has benefited various countries where electricity is cheap and where policies are favorable. Kazakhstan quickly climbed the podium to take second place, ahead of Russia, at 18.1% of shares. But there, the inhabitants are starting to feel the consequences as winter approaches. From now on, the state will have to find a way to share electricity.

Power rationing

Repeated blackouts, increase in electricity consumption by 8% … the situation quickly turned into a crisis in Kazakhstan, reported this weekend the Financial Times. In specially dedicated factories or in homes, the number of bitcoin miners and computers plugged into the network to run energy-intensive programs has exploded. So that there are no longer enough resources for the inhabitants.

In response, the government said it appealed to Russia to fill short-term gaps. In the midst of an oil shortage, which OPEC does not seem ready to give up to limit price increases, a Russian electricity company has allowed Kazakhstan to complete its national grid. To amortize the cost, the miners will have to pay compensation, announced the Kazakh government. That said, the rate hike will only take place in 2022. It will be approximately $ 0.0023 per kilowatt hour.

Read also – The big challenges of the Blockchain in 2022

In the meantime, Bitcoin miners will be the first to do so. cut off electricity in the event of an overload network, reported the Financial Times, in the words of the KEGOC operator. The company has listed 50 Bitcoin miners in a list, to list those primarily responsible for the extraordinary surge in energy use across the country, which has caused multiple outages in six regions since October.

Gold Kazakhstan, the cryptocurrency mining activity also benefits Europe and particularly the northern countries. Ireland rose to fifth position, to 4.7% of the world share, in August 2021. Along with Sweden, hopes for greener electricity looming. But politicians are already ready to limit the spillovers. Swedish authorities have called for an EU-wide ban on energy-intensive cryptocurrency mining.

The country wishes to prevent itself from the same difficulties as Kazakhstan, and reserve resources in the emergency “For the development of steel without fossil fuels, the manufacture of large-scale batteries and the electrification of our transport sector”, explained Erik Thedéen, director of the Swedish Financial Supervisory Authority, and Björn Risinger, director of the Swedish Environmental Protection Agency, in an open letter.

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