Kazakhstan could turn to nuclear power to keep its Bitcoin mining industry running
With the price of Bitcoin skyrocketing this year, there was a potential issue: miners were no longer profitable. Kazakhstan is one country that’s considering turning to nuclear power to keep its mining industry running at full capacity. Will using nuclear provide enough electricity?
The “what does mining crypto mean” is a question that has been asked by many. Kazakhstan could turn to nuclear power to keep its Bitcoin mining industry running.
According to Nikkei Asia, Kazakhstan’s president Kassym-Jomart Tokayev has proposed establishing a nuclear plant to enable Bitcoin mining in order to boost Kazakhstan’s lucrative crypto mining industry.
“We will have to make an unpleasant choice concerning the building of a nuclear power plant in the future,” Tokayev said last Friday at a bankers conference in Almaty.
In April of this year, Tokayev met with Russian President Vladimir Putin to explore the possibility of developing a nuclear power facility. However, due to the harsh criticism it got at the time, the concept was not accepted.
The detractors were quick to comment, calling the nuclear facility proposal a “ecological calamity waiting to happen.” Despite rising disquiet among Kazakhs, President Tokayev is committed to pursue the concept and has dismissed residents’ concerns about building a nuclear power plant as “inappropriate.”
Kazakhstan’s impending power outage
Kazakhstan’s low-cost power has turned the country into a favorite crypto mining destination. When China cracked down on Bitcoin mining in the nation, a huge number of exiled miners fled to Kazakhstan, where they could mine crypto without government interference and take advantage of Kazakhstan’s readily available and inexpensive power.
The country’s energy supply has to quadruple to support such a big number of crypto miners in order to meet the rising demand for Bitcoin mining.
Kazakhstan controls around 35 percent of Bitcoin mining power, second only to the United States, according to IP data from the Cambridge Bitcoin Electricity Consumption Index.
Kazakhstan is now suffering a severe power problem as a result of the unexpected spike in crypto mining activity, and its residents are witnessing regular power outages.
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Posted in: Bitcoin, Cryptocurrency, Mining
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