Bitcoin mining has taken a hit because of the energy crisis in Kosovo and civil unrest in Kazakhstan. This comes as the BTC has fallen to a new low because of the Federal Reserve’s plans of raising interest rates.
Artane Rizvanolli, the Kosovo Economy Minister, in a Facebook post said the cryptocurrency mining ban will address the short and long-term energy shortages. It will also protect the eastern European country’s economy. The minister highlighted that government plans to allocate resources to ascertain crypto mining locations.
Kosovo has been in a state of emergency since December 2021. Extreme cold weather knocked out local power plants. As a result, the government had to import more energy. The European nation gets the majority of its energy from coal-fired plants and also exports it to Albania.
However, in winter due to harsh cold, the demand for energy exceeds the supply. It leads to blackouts across the country. Businesses, hospitals and households are affected because of the power outages. The Kosovo government had no option left but to implement a ban on crypto mining as it consumes huge amounts of energy. Sweden is another European country to ban crypto mining because of the amount of energy it requires.
Meanwhile, the civil unrest in Kazakhstan which was triggered by the government’s decision to remove a cap on fuel prices has taken a negative turn for the crypto industry. Internet blackouts in the Central Asian country have hit bitcoin mining. NetBlocks said Kazakhstan is facing a nationwide internet blackout, mobile internet disruptions and restrictions. The civil unrest has added to crypto markets’ energy woos, prompting some miners to look for a more stable place to operate.
Kazakhstan had emerged as the second-biggest producer of bitcoin. And its growth has now been constrained by the energy crisis and political instability.