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This country also imposed a ban on Cryptocurrency mining, this is the reason

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HIGHLIGHTS :

  • The mining of cryptocurrency consumes a huge amount of electricity
  • A lot of mining is taking place in Kosovo due to low electricity prices
  • The demand for electricity has increased even in winter, that’s why this decision has been taken.

The mining of cryptocurrency consumes a huge amount of electricity

The government of Kosovo, settled in South-East Europe, has banned cryptocurrency mining in the country. According to Reuters, this decision has been taken to curb the consumption of electricity. Kosovo is facing its worst energy crisis in the past decade due to a reduction in electricity production. It is worth noting that a huge amount of electricity is spent in the mining of cryptocurrency. Kosovo’s Minister of Economy and Energy Artane Rizvanoli said in a statement that cryptocurrency mining would be stopped with the help of all law enforcement agencies and other institutions. Also, the places where cryptocurrencies are made will be identified. Due to the low electricity prices in Kosovo, many young people have become involved in cryptocurrency mining.

A lot of mining is taking place in Kosovo due to low electricity prices

Facing the closure of coal-fired power plants and high import prices, the country was forced to begin power cuts last month. Gas prices in Europe rose more than 30 percent on Tuesday after Russia expressed concern over a winter power shortage and cut supplies. In December, Kosovo declared a state of emergency for 60 days in the country. With this, the government will be able to allocate more money for importing energy. Along with this, more power cuts and other strict rules will be implemented.

A cryptocurrency miner who owns 40 GPUs (graphics processing units) told Reuters on condition of anonymity that he was paying around 170 euros (Rs 14,300) a month for electricity. In return, he was getting about 2,400 euros (Rs 2 lakh) every month from profits from mining. Coin mining is on the rise in North Kosovo. It is mostly inhabited by Serbs, who do not consider Kosovo as a country and refuse to pay for electricity.

The demand for electricity has increased even in winter, that’s why this decision has been taken.

This country with a population of 1.8 million is importing more than 40 percent of its energy consumption. The demand for electricity increases here in winter because people use a lot of electricity for heating.

In Kosovo, about 90 percent of electricity is produced from lignite. It is a lump of soft coal, which when burnt produces toxic pollution. According to statistics, Kosovo has the fifth largest deposits of lignite in the world. It is estimated to be 12 to 14 billion tonnes.

The government of Kosovo, located in South-East Europe, has banned cryptocurrency mining in the country. This decision has been taken to curb the consumption of electricity

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