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Kazakhstan looks toward nuclear solutions to tackle Bitcoin mining energy crunch By BTC Peers

by Mike Robinson

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© Reuters. Kazakhstan considers nuclear solutions for the Bitcoin mining energy crisis

An energy crisis has resulted from the migration of coal miners from China to Kazakhstan. The president, however, is considering using nuclear energy as a solution to the problem.

Kazakhstan’s Ministry of Energy suggests that Bitcoin miners are responsible for the 8% increase in domestic electricity consumption throughout 2021. According to data from the Financial Times, the Asian nation has received not less than 87,849 Bitcoin mining machines from Chinese companies this year following China’s crackdown on crypto mining.

According to the Kazakhstan Electricity Grid Operating Company, the extraordinary rise in demand led to a shortage in domestic power supplies. This has also led to unstable electricity services.

Kazakh President Tokayev told bankers at a Nov. 19 meeting that he believes the creation of a nuclear power plant will help reduce the load on his country’s electrical infrastructure.

When we look into the future, it will be necessary to take an unsavoury decision on the construction of nuclear power plants.

Tokayev wants to distance his proposal from Bitcoin power use. But the $1.58 Billion in tax revenue that these miners generate could be endangered if the miners decide to leave the region.

Xive, the Bitcoin mining platform, has already been forced to close its Kazakhstan office due to power shortages. Didar Bekbau, the co-founder of Xive, stated in a tweet that he had to close his company’s mining farm due to “restricted electricity supply from the grid.”

At the moment, Kazakhstan is home to more than 50 cryptocurrency mining companies. This country has been subject to severe nuclear radiation from Soviet-occupied weapons testing and is keen to build new nuclear power plants. Kazakhstan’s last nuclear power plant stopped functioning in 1999.

Right now, about 88% of Kazakhstan’s power is generated from fossil fuel-burning power plants, and the government is trying its best to remedy that.

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