Kazakhstan’s power grid is stretched due to BTC mining, here’s why

Kazakhstan’s power grid is heavily burdened as Bitcoin mining operations in the country are only growing due to the Chinese ban that has caused companies to migrate to Kazakhstan. So let’s read more about it in today’s Bitcoin newsletter.

Even though the market share of the Kazakh BTC network has remained at 18% since August, the network’s hash rate has increased by 43% and the rise in prices has caused even more pressure. When China banned BTC mining in May, many crypto natives moved to Kazakhstan. Mining rigs are uploaded and moved elsewhere, because the great thing about decentralized networks is that they go beyond borders, so that cryptocurrencies always find a way.

However, the miners arriving in Kazakhstan have outgrown the country’s electricity grid to such an extent that, according to reports from Russia, the government no longer welcomes them, but is starting to limit consumption and obtain additional electricity from Russia. From the beginning of the year to the end of summer, Kazakhstan rose from 6% hash rate on the BTC network to 18%, according to the Cambridge Bitcoin Power Consumption Index, making it the second largest hash rate country with a presence in the world lags behind the US at 35%, which gives a large gap between that country and Russia of around 11%.

Even that number isn’t really clear when it comes to how much crypto mining money is in the country. Since Cambridge Bitcoin Electricity Consumption last released its hash rate estimates for each country this summer, the network’s overall hash rate has increased 43%. it fell a little because mining rigs went offline after the China ban and rose steadily to the level in April.

As reported recently, Kazakh President Kassym-Jomart Tokayev proposed a new build for the nuclear power plant to support the country’s mining growth, and the proposal was made during a meeting with bankers after many proposals to increase the contribution of the domestic financial system. for economic development and people’s happiness. After China’s crackdown on cryptocurrency mining, Kazakhstan has become an ideal migration spot for Chinese miners, and the lack of government intervention and low energy costs have made the country a promising destination.