Kazakhstan Considering Bitcoin Mining Through Nuclear Power In Between Coal Crisis

This year, the country experienced a large influx of miners, but if power grid concerns are not rectified, the country may have to forego the enormous tax money generated by Bitcoin miners.


The influx of Bitcoin miners from China into Kazakhstan has created an energy shortage. Due to which the president of the Central Asian country has proposed resolving with nuclear power.

Bitcoin miners are blamed by Kazakhstan’s Ministry of Energy for an increase of 8% in domestic electricity use in 2021.

According to data from the Financial Times, the country has acquired at least 87,849 Bitcoin mining devices from Chinese companies so far this year, after China’s crackdown on crypto mining.

Hence, the country contributes to 18.10% of the world’s bitcoin mining hashrate.

BITCOIN MINING COMPANIES LEAVING THE COUNTRY

According to the Kazakhstan Electrical Grid Operating Company, the large rise in demand has resulted in a domestic power supply shortage. It contributes to inconsistent electricity supplies.

At a meeting with financiers on Friday, President Tokayev said he believes establishing a nuclear power plant. It will help relieve the strain on his country’s electrical infrastructure:

We will have to make an unpopular decision about building a nuclear power plant in the future,” says the author.

Xive, a Bitcoin mining marketplace, has previously left Kazakhstan due to power constraints.

Didar Bekbau, the co-founder of Xive, tweeted on Tuesday that his company’s mining farm had to be shut down owing to “limited electrical supply from the grid.”

Kazakhstan now has 50 registered crypto mining firms and an unknown number of unregistered ones.

For a country that endured catastrophic nuclear fallout from weapons testing during the Soviet era, the decision to develop new nuclear power plants is a serious one. The last nuclear power station in Kazakhstan was shut down in 1999.

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