Kosovo lacks power, bans crypto mining

Kosovo was, until recently, a miners’ paradise. But the energy situation is tense today, and mining has become illegal.

In southern Europe, the autonomous region of Kosovo is in the grip of a veritable energy war. The country which is fighting for its independence is currently affected by an electricity shortage on an unprecedented scale. As the world looks to CES and the future, the country has just been placed in a state of emergency, and power cuts are becoming more frequent.

The small southern European country is now seeking to outlaw activities that consume too much energy, thus cryptocurrency mining has become an illegal activity in the region. It was the Minister of Energy, Artane Rizvanolli, who made the announcement on January 4, while the country was still affected by general power cuts.

Because mining is not just a small activity in Kosovo. With energy prices among the lowest in the world, the young republic had in recent years been the target of miners from all over the world to make as much profit as possible. As a reminder, mining consists of the computer verification of cryptocurrency transactions, and therefore the maintenance of the blockchain.

Kosovo: a paradise for suspended minors

With a growing economy of virtual currencies, operations are more complex than ever, and the power required is therefore increased tenfold. With a significant environmental impact, mining had already been the target of several criticisms for its excessively high electricity consumption.

Asked by a reporter on the ground for the media Reuters, a minor explained that Kosovo allowed to draw gross profits of about 2,400 euros per month for 170 euros of monthly expenses. It is quite simply the best report in the world.

But now, in recent weeks the situation has been changing. You should know that, already in normal times, the electrical situation in Kosovo is complicated, especially in winter. Indeed, the country is obliged to import 40% of its electricity to allow the 1.8 million people to heat themselves decently.

But now, in mid-December the largest power station in the country had to close. Too dilapidated the latter needed repair, and it left a great void in the region.

An unfortunate sequence

But as work continues at this plant, imports, especially Russian gas, are increasingly complicated, and prices are skyrocketing. Electricity then becomes a scarce commodity and its use is limited to the subsistence minimum. Today the country has gone into a state of energy emergency, in fact the government has the right to cut off electricity at any time of the day or night, without having to report or prevent population. This temporary situation has led to an increase in cuts in the country.

The Kosovar people, very upset against their leaders, therefore decided to march in the streets, especially those of the capital Pristina. The people who have taken to the streets are asking above all for a return to normalcy and a resignation of Rizvanolli, whose actions, or rather inaction, would be, according to them, one of the reasons for the problem.

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