Whether Kazakhstan or Kosovo; mining poses major challenges to more and more emerging countries. A country in the Caucasus is presenting a possible solution.
When China banned bitcoin mining in June last year, the brief shock quickly gave way to euphoria. Quite a few saw the crypto ban as an opportunity to diversify the global hash rate. And indeed, the majority of digital prospectors broke down their tents in the Middle Kingdom and fled from Beijing's restrictive measures. The biggest beneficiaries were the United States, which was able to rise to become the new major power within industry.
Above all, however, the demonopolization of China's emerging countries brought new opportunities to create an attractive location for the still young mining industry. Kazakhstan and Russia quickly became the second and third most important mining hotspots. In Europe, Kosovo was hoping for an additional financial boon as one of the poorest countries on the continent.
However, it didn't take long for the downside of digital prospecting to become apparent. It quickly became apparent that the will to accept the mining industry existed, but that the power infrastructure of the countries could hardly cope with the increased energy consumption. The consequences for miners were sometimes drastic.
Kosovo's miners are throwing devices onto the market
In Kosovo, the government imposed a temporary 60 -day mining ban at the end of December last year as a result of power outages and energy shortages. Shortly thereafter, authorities began confiscating. As a result, the industry in the Western Balkans is currently in panic mode. As reported by The Guardian , citing Facebook and Telegram groups , numerous miners in the country are offering their equipment for sale, sometimes at ridiculous prices, or are relocating to neighboring countries.
Kazakhstan also became acquainted with the downside of the mining coin long before the unrest of the past few weeks . Power shortages have forced the government to cut back power to the digital miners. Experts then observed a migration trend, which accelerated due to the Internet failures in the course of the bloody conflicts in the Central Asian country.
And in Russia, too, the country’s central bank cited mining as a partial reason for calling for a general crypto ban . Digital prospecting exhibits "unproductive power consumption" that undermines the energy supply of residential buildings, social infrastructure and industrial objects, as well as Russia's environmental agenda.
Is mining a danger for emerging markets?
The examples show: Emerging countries must ask themselves to what extent an influx of miners poses a threat to their domestic power infrastructure. Peter Margraff sees it that way too.
Yes, at least if you allow the immigration uncontrolled. I think every move is problematic if there are no clear rules of the game, if you don't clearly limit the electricity quota in advance.
Marggraf sees a solution in Georgia's advance. The state in the South Caucasus recorded a significant increase in energy requirements last year as a result of high economic growth, low electricity prices and increased mining activities. The government in Tbilisi reacted and embarked on the liberalization of the electricity market.
On the one hand, energy producers now have to specify exactly how much electricity they can produce with their systems. On the other hand, the large energy consumers also undertake to comply with the specified consumption. The concept makes it easier to estimate and harmonize both generation and consumption.
A concept that could also be applied to other emerging markets, according to the mining expert. After all, the lack of tracking of electricity consumption in Kazakhstan led, among other things, to the energy bottlenecks.
However, it remains to be seen whether the Georgian model will actually make the rounds. The German Economic Team , financed by the federal government, described the expansion plans for the Georgian electricity infrastructure as "ambitious" and their implementation as "questionable".
However, should Georgia manage to successfully implement the project, mining in the country should turn out to be a financial blessing.
My Top PicksHoneygain - Passive earner that pays in BTC or PayPalMandalaExchange -The Best no KYC crypto Exchange!
BetFury - Play And Earn BFG for daily Bitcoin and ETH dividends!
Pipeflare - Faucet that pays in ZCash and Matic, Games pay in DAIWomplay - Mobile dApp gaming platform that rewards in EOS and BitcoinCointiply - The #1 Crypto Earning SiteLiteCoinPay -The #1 FaucetPay earner for LitecoinUpland - Collect Digital Properties & Test Your SkillsLBRY/Odysee - YouTube Alternative that lets you earn Money by viewing videos!FaucetPay - The #1 Microwallet PlatformFREEBTC - The #1 FaucetPay earner for Satoshi'sFaucetCrypto - An earning/faucet site that pays out instantlyFireFaucet - An earning site that pays better for some than Cointiply
DogeFaucet - Dogecoin Faucet
xFaucet - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BCH, BNB, ZEC, FEY - Claim every 5 minutes
Konstantinova - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BCH, BNB, ZEC, USDT, FEY, 25 Claims Daily
Comments
Post a Comment