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Kazakhstan Has Powered Down Bitcoin Miners Amidst Blackouts in Central Asia

The government of the Central Asian country has cut off power till the end of January.

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Photo by Photocreo

Suffice it to say Kazakhstan Bitcoin miners aren’t going to be earning much BTC in this, the final week of January. The Electricity Grid Operating Company, or KEGOC, which is state-run, has confirmed that power has in fact been cut off in order to prevent Bitcoin and crypto mining companies from the 24th to the 31st of January, per their statement to Bloomberg.

That however did not stop Central Asia from being plunged into absolute darkness on Tuesday, thanks to a disconnected power line leaving millions of Kazakhstan, Kyrgyzstan, and Uzbekistan without any water or power.

Despite the countries’ governments informing them of the power returning, Bitcoin miners down in Kazakhstan shouldn’t expect to see access to it for the immediate future.

This Central Asian country has in fact taken the mantle of the 2nd biggest miner of Bitcoin in the world after China absolutely shut down Bitcoin mining activities of all kinds. The country offers some low power prices all thanks to the deposits of natural gas and coal, which leads to miners turning in more of a profit.

Kazakhstan had originally welcomed the mining industry with open arms whilst regulating it at the time, but the government’s desire to detach itself from coal, combined with huge volumes of Bitcoin miners in the country, has all but strained the electrical grid. Per the government’s estimates from fall, 2021, miners used up 8% of the country’s available energy supply. More than half of that has come from “grey” operations which haven’t even registered thanks to tax requirements and further government oversight.

Magzum Mirzagaliyev, the Kazakhstan Energy Minister, told regulated operations back in November that they shan’t be disconnected from the national grid, and that the country was targeting miners, but for the moment, everyone seems to in fact be in the dark.

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