Kazakhstan President Kassym-Jomart Tokayev has suggested building a nuclear power plant to support Bitcoin mining and provide refuge to migrant miners from China.
According to Nikkei AsiaKazakhstan’s President Kassym-Jomart Tokayev has suggested building a nuclear power plant to support Bitcoin mining in an attempt to support the country’s lucrative cryptocurrency mining activities.
As Tokayev said at a meeting of bankers held this past Friday:
Looking to the future, we will have to make an unpopular decision about building a nuclear power plant.
tokayev argued for the first time the idea of building a nuclear power plant with Russian President Vladimir Putin, in april 2019. However, the idea could not be accepted after the strong criticism it received at the time.
Critics responded quickly, referring to the idea of the nuclear power plant as an “ecological disaster” in the making. Despite growing unrest among the citizens of Kazakhstan, President Tokayev is keen to pursue the idea and called the citizens’ apprehension about the construction of a nuclear power plant “inappropriate”.
Kazakhstan’s impending energy crisis
Kazakhstan has low-cost electricity prices, which has made the country a popular location for cryptocurrency miners. When China imposed a heavy crackdown on Bitcoin mining activities, a large group of ousted miners took refuge in Kazakhstan, where they could mine cryptocurrency without excessive government intervention, could use its cheap and easily accessible electricity to extract Bitcoin.
For to feed With the growing demand for Bitcoin mining, the country’s energy supply has had to double to accommodate such a large influx of crypto miners.
According to IP data of the Cambridge Bitcoin Electricity Consumption Index, Kazakhstan controls approximately 35% of Bitcoin mining energy, which lags behind that of the United States.
Due to this sudden increase in cryptocurrency mining activities in Kazakhstan, the country is now facing a severe energy crisis, where its citizens are facing frequent power surges.