The announcement by the Kosovo authorities that they would temporarily ban the mining of cryptocurrencies resulted in the sale of more equipment needed for this activity.
The government of this country has decided on a ban in order to alleviate the energy crisis.
Among other things, the equipment used for cryptocurrency mining consumes a lot of electricity.
These are extremely high-power computers.
Cryptocurrency mining in one of the poorest countries in Europe is very attractive.
One Bitcoin is traded for more than 37,700 euros.
On the other hand, the price of Kosovo’s electricity is the lowest in the Old Continent, and the reason for that is that 90 percent of electricity in domestic production is obtained from lignite, which this country has in large quantities.
In addition, the government subsidizes energy bills.
According to the online edition of the Guardian, it is assumed that this mining is most present in the north of Kosovo, where the predominantly Serb population lives.
Most of them do not recognize the independence of Kosovo and, according to the British paper, have not paid for electricity for two decades.
The number of cryptocurrency miners was increasing and they managed to make good money on it.
However, it seems that the decision of the Kosovo government is a bad time for cryptocurrency mining.
This raises the question of the future of mining Bitcoin and other cryptocurrencies.
The University of Cambridge has calculated that mining Bitcoin consumes 125.96 terawatt-hours of electricity worldwide annually.
This is more than the total annual electricity consumption in Norway, Argentina, the Netherlands, and the United Arab Emirates.
The inability of the Kosovo government to meet the need for increased electricity consumption has resulted in an energy crisis.
Many households were left without electricity and electricity prices went up.
Due to that, the authorities were forced to import electricity and subsidize its payment to households.
Kosovo is not the only country that has banned cryptocurrency mining.
It was announced that this will be done in China, which is the world’s largest industry for this activity. They also decided on a ban in Iceland.
It is likely that mining of this kind will be questioned by the authorities of the United States of America, Kazakhstan, and Russia.
Among the most important reasons for that is the high electricity consumption.