Blackout for minors – Reducing the amount of energy required for mining Bitcoin (BTC) will it necessarily involve major modifications to the operation of the protocol? If no one seriously considers such an option – that would violate the most fundamental tenets of the Bitcoin network’s value proposition – the situation is nevertheless tense on this subject in several parts of the world. The electricity bill is so bitter – rather than salty – for the miners of Kosovo, who must stop their exploitation.
Power shortage in Kosovo: miners implicated
According to a January 4, 2022 article in the Gazeta Express media, the Minister of Economy of Kosovo, Artane Rizvanolli, has decided to prohibit the mining of cryptocurrencies inside its territory, based on the recommendations of the Technical Committee on Emergency Measures for Energy Supply.
This committee was formed after Kosovo suffered power shortages during the winter. Kosovo’s energy distribution company, KEDS, had announced nationwide cuts on December 22, 2021.
Law enforcement will be responsible for identifying the places where minors operate and the implementation of these repressive measures.
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Bitcoin mining: riskier than trading bitcoin?
Countries that host bitcoin miners, generally have to arbitratorr between the revenues generated by the sector, and the pressure that these activities exert on the electricity network.
Kazakhstan had taken steps to reduce the electricity consumption of unregistered miners, while Iran had banned cryptocurrency mining in the summer of 2021.
Minors are therefore faced with a multitude of challenges or hazards to make their activities as profitable as possible:
- Bitcoin’s price volatility, although bullies keep their eyes on $100,000 in the long run;
- the search for cheap electricity from a renewable energy source to cope with growing pressure from environmentalists;
- the radical decisions of certain governments like China which can decide on their definitive banishment.
Ripple (XRP) founder Christian Larsen has advanced a controversial solution to make bitcoin less energy intensive. Will this problem solve itself – Bitcoin thus demonstrating that its system is able to restore a certain balance by itself – or will the radical changes implemented be “painful” for the fervent defenders of the work of Satoshi Nakamoto?
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