Chinese miners flee to Kazakhstan, where they create an energy crisis

UNITED STATES (VOP TODAY NEWS) — According to preliminary estimates of analysts, more than 87 thousand units for mining arrived from China to Kazakhstan.

According to the Ministry of Energy of Kazakhstan, the crypto-miners who have announced in the country have increased the demand for electricity by 8 percent since the beginning of 2021. For comparison, in previous years, growth ranged from 1 to 2 percent.

Last year, China’s central bank declared all cryptocurrency-backed transactions illegal in the country. The authorities imposed a ban on digital currency amid national concerns about the country’s borders and the “safety of people’s assets.”

Cryptocurrency miners in Kazakhstan are facing power outages as Chinese miners flock to the country.

“It’s been a few days since my machines were connected to the Web,” San Jose-based software engineer Matthew Hurd told the Financial Times. “For the last week, even if my machines turn on, they will hardly continue to work.”

The Financial Times also reported that over 87,849 mining rigs came from China to Kazakhstan, which, according to the University of Cambridge, places the country in second place (after the United States) as the leading cryptocurrency mining region.

Currently, the Kazakhstan Energy Company has notified crypto miners that it will begin rationing capacity for its 50 registered crypto miners to avoid repeated power outages. The authorities of Kazakhstan believe that the shortage of electricity is associated with an increase in the number of so-called “gray miners” who illegally mine cryptocurrency.

Online:

This article is written and prepared by our foreign editors writing for VOP from different countries around the world – edited and published by VOP staff in our newsroom.

Our Standards, Terms of Use: Standard Terms And Conditions.

Contact us: [email protected]

VOP Today News — Breaking news source, real-time coverage of the world’s events, science, technologies, life, politics, business, finance, economy, markets, war and conflict zones.

Support The VOP from as little as $1 – it only takes a minute. Thank you.

We are the Voice of People — the only funding and support we get from people – we are categorically not funded by any political party, any government somewhere or from any grouping that supports certain interests – the only support that makes VOP possible came from you.