bitcoin mining causes power shortage kazakhstan consider building a nuclear power plant

The massive outflow of Bitcoin miners from China to the Central Asian country of Kazakhstan (Kazakhstan) has caused a local energy shortage. The President of Kazakhstan has proposed nuclear energy to solve this major problem.

The Ministry of Foreign Affairs of Kazakhstan attributed the 8% increase in domestic electricity consumption this year to the massive use of electricity by Bitcoin miners. According to the British "Financial Times", after China cracked down on cryptocurrency mining, Kazakhstan has received at least 87,849 Bitcoin mining machines from Chinese companies this year.

According to the power grid operators in Kazakhstan, the massive increase in power demand has led to a shortage of domestic power supply and made power services unreliable. President Tokayev of Kazakhstan told bankers at a meeting on November 19 that he believes that the construction of a nuclear power plant will help ease the pressure on the power infrastructure in Kazakhstan.

Tokayev said: Looking at the future, we will have to make the unpopular decision to build a nuclear power plant.

Although Tokayev did not link the plan to build a nuclear power plant with the power consumption of Bitcoin mining, if it fails to keep Bitcoin miners in Kazakhstan, it may have to wait and see an estimated $1.58 billion in tax losses. Currently, power shortages have forced Bitcoin mining platform Xive to leave Kazakhstan. Xive co-founder Didar Bekbau said in a tweet on the 25th of this month that he was forced to close the mines of his company due to power grid restrictions.

Currently in Kazakhstan, there are a total of 50 cryptocurrency mining companies registered with the government, and some unregistered miners exist.

For Kazakhstan, the decision to build a new nuclear power plant is a serious issue because the country suffered severe nuclear dust effects from weapons tests during the Soviet occupation. The last nuclear power plant in Kazakhstan was shut down in 1999.

Among the current sources of power generation in Kazakhstan, 88% come from fossil fuel power plants.