While the government of Kazakhstan cut electricity to contain violence, the government of Kosovo did it as well to save energy for its citizens. In both cases, the suspension of power affected the operation of Bitcoin mining farms and the cryptocurrency market.
A problematic situation in Kazakhstan has affected the hash rate of the Bitcoin mining business in recent days. Although the government cut the Internet service to contain street violence, the unrest in the Asian country seems to continue. However, those measures had a direct impact on the entire cryptocurrency market.
Kazakhstan has the second-highest hash rate after receiving thousands of miners from China. However, violent groups allegedly financed abroad seem to take advantage of social unrest. When the government cut the Internet service, mining farms could not operate.
The Internet and electricity are crucial for the Bitcoin mining business, but the peace-keeping forces from the Russian Federation might calm the situation. It is also relevant to know that the events in the Asian nation may have affected the price of Bitcoin to a large extent.
Kosovo Stops the Cryptocurrency Mining Activity Due to an Energy Crisis
The authorities of Kosovo also cut electricity, not because of street violence, but to save energy for the population. They said that the high energy consumption by cryptocurrency mining equipment could be risking the supply for other sectors.
Some countries have a high capacity to generate electricity, making them ideal for the business. However, Kosovo is among those not ready to cope with the demand from cryptocurrency mining.
The authorities from the Balkan country recently stopped cryptocurrency mining activities due to a severe power crisis. After conducting a study, the emergency committee recommended that the Minister of Economy, Artane Rizvalloni, act immediately.
As a response, Rizvalloni decided to prohibit the energy supply for the mining business. He argued that power generation is too low while cryptocurrency mining continues increasing its demand.
Mozilla Suspends the Offer of Crypto Assets as a Reward
Regarding the alleged environmental harm by cryptocurrency mining, Mozilla suspended its rewards in cryptocurrencies. On Twitter, the firm behind Firefox recently stated that the complaints by users about the contamination caused by cryptocurrencies led them to that decision.
Mozilla said they had announced last week that they would accept donations in cryptocurrencies. That generated further discussion about the negative impact of the mining activity on the environment. In response, they began the thread of texts in the above social network to justify the suspension of the recently adopted service.
In that way, the firm behind the popular browser joins the narrative of the allegedly disastrous carbon emission due to cryptocurrency mining. However, various studies have revealed that this business does not pose threats to the environment despite its high energy consumption.
Bitcoin mining is an increasingly relevant activity, which has experienced many difficulties after the Chinese authorities banned it in 2021. Many miners migrated to other countries looking for opportunities to develop their business but found several obstacles.
By Alexander Salazar
