Kosovo Bans Cryptocurrency Mining Due To Ongoing Energy Crisis

Kosovo Bans Cryptocurrency Mining Due To Ongoing Energy Crisis

To be sure, China’s total ban on cryptocurrency mining last year has helped spread Bitcoin’s hashing power around the world. But it could also trigger a growing energy crisis in some of these countries, especially from the start of the winter season.

Following a trend from several other countries, the Kosovo government has now banned cryptocurrency mining in the country to address energy shortages.

Mining Against Power Shortage

According to local media reports, Kosovo’s Economy Minister Artani Rizvanolli ordered all crypto miners to cease their activities, on the recommendation of the Technical Committee for Emergency Measures in the field of energy supply.

The decision was made after the country’s power supply fell below required levels in recent months, leading to power outages even during peak hours. Rizvanolli also pointed out that the government formed a technical committee to assess the situation, based on the recommendations from which these energy measures against crypto mining were taken.

To ensure the closure is complete, the government will enlist the help of law enforcement officials who will detect the mining sites and ensure they are immediately suspended. The report also notes that the minister said:

Bitcoin has long been criticized for being environmentally unsustainable and for placing an energy burden on unsuspecting countries. According to the latest estimates, Bitcoin production consumes around 91 terawatt-hours of electricity per year, more than all of Finland uses.

Because of this, many countries in the recent past have taken steps similar to Kosovo in an attempt to restore their previous energy levels. The latest was Iran, whose energy authorities decided on December 28 to halt the operations of licensed cryptocurrency mining centers, as the country’s energy consumption increased with decreasing temperatures.

Serene BTC mining

Kazakhstan, which is currently the second-largest contributor to Bitcoin’s hash rate, also reported a strain on the country’s power grid due to crypto mining, which can use up to 8% of total power generation capacity.

This prompted the authorities to take immediate action and introduce energy quotas to limit this consumption. Other governments seeking to address similar problems include the governments of Russia and Argentina.

Regardless, the Bitcoin hash rate hit a new lifetime high of 209.39 EH / s on the first day of the year. Overall, the network’s hash rate has grown 202.98% since China imposed a ban last May, causing a sharp drop in computing power.

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