Crypto Analysis

Bitcoin mining is banned in Kosovo after Iran

In Kosovo, where many protests were held due to power cuts, some sections attacked transformers, and the country’s government declared a 60-day state of emergency, Bitcoin and other crypto currency mining were also banned. While the statement was coming from the Minister of Economy Artane Rizvanolli, it was stated that the law enforcement officers started to investigate the mining operations.

It is stated that the Minister acted on the recommendation of the “Committee for Emergency Measures for Energy Supply” established in December, while representatives from the Kosovo Energy Authority are also on the committee.

Import prices increased

A 60-day state of emergency was declared in Kosovo recently after the energy crisis, which became a problem especially in Western Europe, spread to the Balkans as well.

Most of the electricity in the country comes from coal-fired power plants, the largest of which stopped working in December, citing technical problems. Therefore, Kosovo had to import electricity from neighboring countries. However, the harsh winter conditions in Serbia caused the electricity purchased from Kosovo to become seriously expensive.

The remedy is cutting off cryptocurrency mining…

While the people of Kosovo have been struggling with the rise in electricity bills for some time, the cuts have been coming one after another. The government, on the other hand, preferred to impose a ban on cryptocurrency mining, especially Bitcoin, in order to reduce energy consumption.

0.01% of the total hash rate is from Kosovo

As it is known, with the appreciation of cryptocurrencies in the last period, people struggling with economic crises have found the solution in crypto money investments or mining. Cryptocurrency mining has also skyrocketed recently in Kosovo, which is one of the countries with the cheapest electricity in Europe, although not with green energy. According to the figures in Cambridge University’s study; The hash rate in the country coincided with 0.01 percent of the world.

Cryptocurrency mining has also gained momentum in countries such as Kazakhstan and Iran, where electricity prices are cheap, but the large number of unregistered miners and the inability of states to take clear measures in this regard draw attention.

In the summer months, bans were imposed in Iran due to power cuts and activities resumed in September, but as similar problems continued, crypto currency mining was once again banned in the country until March.

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