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Kosovo bans cryptocurrency mining due to energy crisis
It was recently known that the Kosovo government totally banned cryptocurrency mining due to the fact that it is going through a severe energy crisis.
Without a doubt, this is a blow to all the miners who made life in the country and who will probably have to move to another place.
Kosovo is one of the poorest countries in all of Europe and this has led to a serious energy crisis during the winter. This is considered the biggest crisis in recent years in the country.
An increase in electricity prices
In Europe there has been a sharp rise in electricity prices and this has affected the entire continent. It was therefore to be expected that Kosovo would be affected, especially since it requires importing up to half of the energy it consumes.
This increase has caused great discomfort among the population who have been affected by the increase in prices, having one of the lowest wages in Europe.
This has caused many people to go into cryptocurrency mining for some extra income. And it has ended up becoming a problem for the country's precarious electrical system.
That is why the government has decided to prohibit this activity trying to reduce the country's demand.
Kosovo's residents are affected by constant blackouts
With the arrival of winter and the increase in demand in consumption, the inhabitants of Kosovo have suffered several blackouts.
These service cuts are caused both by the strong increase in demand and the delicate situation of the electrical system, which lacks adequate maintenance and growth.
In some areas of the country the blackouts have lasted up to 24 hours, while in others the time without service has been less. In any case, this represents a problem for the tranquility of people who do not know when the next one will be.
This also affects traders and, of course, miners who have seen their activities stop. It is no secret to anyone that the government has not had good management of the energy issue and that it has not done anything to prevent the problem.
A precarious electrical infrastructure
The country's electricity generation comes from two very old coal plants, which can only supply about half of the consumption. However, one of them is paralyzed by a fault, which is why the condition is much more precarious.
To this must be added that Kosovo subsidizes the price of the cost of electricity to offer lower prices.
However, the state recently spent 40 million euros to cushion the impact of the increase. This may not seem like a lot of money for a government, but Kosovo does not exactly have a good economy, so its coffers are quite limited.
That is why one of the solutions proposed by the government is to further increase the cost of the service in order to be able to invest in the purchase of more electricity. Even, it is also sought to reinforce the current electricity generation.
This was a measure that the government should have implemented long ago. However, it was waited until the situation worsened and the blackouts began.
What can Kosovo miners expect?
The situation does not look promising for the miners who make life in Kosovo. In fact, some analysts assure that the crisis will continue, at least until April, which would mean that they would be between 3 and 4 months without producing.
Even after the crisis passes, it is not known with certainty if the ban will continue or if it will be lifted. That is why it is likely that some miners decide to go to neighboring countries to continue the practice.
