Here’s why Kosovo banned cryptocurrency mining

2 min read | January 05, 2022 09:30 AM AEDT | By Ashish

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Here’s why Kosovo banned cryptocurrency mining — Image source: VideoFlow,Shutterstock

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Highlights

Kosovo’s government has imposed a ban on cryptocurrency mining in the country.

Crypto mining has picked up significantly in the past few years, especially among the younger lot.

Kosovo is an ideal crypto mining destination for its cheap electricity prices.

Amid a rising energy crisis, Kosovo’s government has introduced a ban on cryptocurrency mining in the country. With this ban, the country seeks to curb the consumption of electricity as it battles the worst energy crisis in a decade due to production outages. Crypto mining has picked up at a large scale in the past few years, especially among the younger lot, due to cheap electricity prices in the country.

"All law enforcement agencies will stop the production of this activity in cooperation with other relevant institutions that will identify locations where there is cryptocurrency production," Economy and Energy Minister Artane Rizvanolli said on Tuesday.

Power cuts

The government in December introduced power cuts as it was faced with coal-fired power plant outages and high import prices. Gas prices in Europe have surged by over 30% due to muted supplies from Russia. With the country facing winters, the situation is expected to get grimmer.

In December, Kosovo declared a state of emergency for 60 days which allowed the government to allocate more money to energy imports, introduce more power cuts and harsher measures.

The government in December introduced power cuts as it was faced with coal-fired power plant outages.

Source: © Aoutphoto | Megapixl.com

What is Bitcoin mining?

Bitcoin mining is the process by which new Bitcoins are entered into circulation. Mining is also a way through which new transactions are done. The process is carried out using sophisticated hardware that solves an extremely complex computational math problem. The first computer to find the solution to the problem is awarded the next block of Bitcoins and the process begins again.

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