Crowded Exodus of Crypto Mining to Kazakhstan, Government Wants to Get Nuclear Power

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ACCURATE.CO Cryptocurrencies have continued to increase slowly in recent months. It’s no wonder that now many people are choosing to own assets in the form of this digital currency.

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In fact, one of the countries in Central America, El Salvador has inaugurated the use of Bitcoin currency as a transaction tool in that country. The presence of a cryptocurrency, namely Bitcoin cs, is still a polemic as well as an interesting thing because it is increasingly in demand.

No wonder a number of countries provide strict supervision of cryptocurrencies.

The exodus of Bitcoin miners from China moving to Kazakhstan has participated in efforts to prevent an energy crisis that the president of the central Asian country has proposed to solve with nuclear energy.

The Ministry of Energy of Kazakhstan has attributed an 8% increase in domestic electricity consumption throughout 2021 to Bitcoin miners. The country received at least 87,849 Bitcoin mining machines from Chinese companies so far this year following China’s crackdown on crypto mining, according to data from the Financial Times.

According to the Kazakhstan Electric Grid Operations Company, the substantial increase in demand has led to a deficit in domestic electricity supply and contributed to unreliable electricity services.

President Tokayev told bankers at a November 19 meeting that he thought building a nuclear power plant would help ease pressure on his country’s electricity infrastructure:

“Looking to the future, we have to make an unpopular decision about building a nuclear power plant.”

While Tokayev did not link the proposal to the use of Bitcoin mining power, failure to keep miners in the country could jeopardize the estimated $1.58 billion in tax revenue represented by those miners.

A power shortage has forced the Xive Bitcoin mining market to leave Kazakhstan. Didar Bekbau, co-founder of Xive, said in tweets 25 November that he had to close his mining company due to “limited electricity supply from the grid”.

“A little sad to close our mining farm in southern KZ. The last container is ready to be shipped. So many jobs, people, hopes are crushed,” the report said.

Kazakhstan is now home to 50 registered crypto mining companies and an unknown number of unlisted ones.

The decision to build a new nuclear power plant is a serious one in a country that suffered severe nuclear impacts from weapons testing during the Soviet occupation. Kazakhstan’s last nuclear power plant was closed in 1999. To note, about 88% of Kazakhstan’s current electricity comes from fossil fuel power plants.[]

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