• Press Releases
    • Submit a press release
    • Read All
  • Contact us
Advertise
Bitcoinist.com
Join Lightchain AI
No Result
View All Result
👆 BUY LIGHTCHAIN HERE 👆
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Breaking News: BREAKING: Historic $109,500 Bitcoin High: Here’s What Analysts Predict Next
👆 BUY LIGHTCHAIN HERE 👆
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Bitcoinist.com
No Result
View All Result
Breaking News: BREAKING: Historic $109,500 Bitcoin High: Here’s What Analysts Predict Next
Crypto Miners Panic – No Affordable Electricity Left?

Crypto Miners Panic – No Affordable Electricity Left?

Sarah
by Sarah
3 years ago
·
Posted in Bitcoin
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Crypto miners require high electricity for their mining activities. But with the high energy consumption, several jurisdictions are frowning on digital currency mining. Moreover, mining activities are recently creating another environmental threat due to the energy source.

Some miners are using fossil fuels to generate the required electricity for mining. Combustion of these fuels leads to the emission of carbon oxides that pollute the environment. Hence, some government has placed strict measures on digital currency mining.

Related Reading: Why Meta Is Shelling Out $150 Million To Construct 10 Schools In The Metaverse

Bans On Crypto Mining

China’s Ban On Mining

In 2021, China initiated a war against crypto mining, particularly Bitcoin mining. The Chinese government first issued some warnings on mining and trading digital assets in the country. Subsequently, the ban on crypto mining erupted in different provinces of China with Xinjiang, Inner Mongolia, Sichuan, Beijing, and Yunnan provinces taking the lead. 

Before its crackdown on crypto mining, China stood as the world’s largest digital mining country.

Kazakhstan Tough Legislation

While leaving the shores of China, many of the miners found solace in Kazakhstan. At first, the government threw its doors open for miners. Kazahkstan became the next crypto-mining-friendly country and later the second-largest BTC mining base in the world.  

However, the joy of the miners was short-lived due to frequent power blackouts. The government of Kazahkstan initiated tough legislation to down the electricity supply from crypto mining. 

The lawmakers dramatically pushed the once low energy cost to a very high level, discouraging miners. Also, the country gave more unfriendly laws tagging all unregistered crypto mining as economic crimes.

US Texas freezes Permits To Connect To Grid

Although most of the miners moved to Kazahkstan during the Chinese crackdown, some just chose the US. 

The low electricity costs in Texas became an attractive point for the miners. The country provided the right infrastructural support that the crypto miners require for their operations.

The US energy sources are the most renewable and affordable for miners. Miners usually compete in a low-margin environment with electricity as their only variable cost. Hence, the cheaper the energy cost, the better their profitability. 

Unfortunately, the electricity tariff is gradually increasing in the US. Thus, the possibility of remaining profitable for miners in the US is drastically dropping.

Moreover, some miners who migrated to the country now have issues with permits to be able to connect to the grid even with those increased tariffs. So, the US seems to be losing its position as the best destination for miners. 

Miners Looking For Alternatives

As the mining difficulty rises, miners are looking for more ways to mint digital assets. And crypto community may pay attention to post-Soviet countries like Armenia. This mountain-based country seems to have good potential with its cheap electricity and support from the government.

Crypto Miners Panic – No Affordable Electricity Left?
Crypto market is hovering sideways | Source: Crypto Total Market Cap on TradingView.com
Related Reading: ‘Love Island’ Twins Warned By UK Watchdog To Behave For Misleading Crypto Ads
In 2018 a Free Economic Zone called ECOS was established by the government decree. The idea was to encourage the expansion of the country’s blockchain industry and other technology sectors.

FEZ residents have unique conditions such as 0% income tax and 0% VAT, 0% import and export duties, 0% property and real estate taxes for the next 25 years. The launch of ECOS data center at the territory of FEZ provides the ideal conditions for miners. 

The center location in Hrazdan, 1,850 meters above sea level with an average yearly temperature of 4.8C allows to avoid issues of overheating of mining machines.

Moreover, in August 2022 ECOS reported adding 60 MW of capacity to its power plant-based facility at affordable costs. The new plot can accommodate more than 20,000 mining devices on an area of ​​2.2ha, with the potential to expand to an additional 200MW. 

Moreover, in August 2022 ECOS reported adding 60 MW of capacity to its power plant-based facility at affordable costs.
Featured image from Pexels, chart from TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Sarah

Sarah

Follow

Sarah is a journalist who continues to share her passion for writing through her writing in DeFi, FinTech, and Cybersecurity.

Full Profile

Related Posts

Bitcoin

Bitcoin’s Power Compared To Nuclear Reactor By Brazilian Business Leader

2 days ago
Panama

Is Panama City Next? Mayor Teases Bitcoin Reserve After Diplomatic Exchange

3 days ago
bitcoin

Ark Invest’s Cathie Wood Predicts Bitcoin To Hit $1.5 Million By 2030 — Here’s Why

4 days ago
Bitcoin price

Bitcoin Price Could Reach $159,000 This Cycle — Crypto Analyst Reveals How

4 days ago
Bitcoin price

Bitcoin Price Currently At A Crossroads — Sub-$100K Or New Cycle High Next?

5 days ago
Bitcoin

Bitcoin’s Setup Deepens — This Formation Could Shake Out The Crowd

5 days ago
Please login to join discussion

Premium Sponsors

Press Releases

  • subbd

    583 мужчины за 6 часов: как SUBBD...

    4 hours ago
  • Investors ditch crypto giants for PaladinMining cloud...

    4 hours ago
  • How to Make $10,800 a Day Using Bitcoin (BTC) to Invest in...

    4 hours ago
  • ALL4 Mining Service Provider Launches User-Friendly Cloud...

    4 hours ago
  • Bitcoin (BTC) Holders Earn $37,700 a Day with Winner Mining...

    5 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Join Lightchain AI

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

About Us

  • Advertise
  • Contact us
  • Editorial Policy
  • Privacy Policy
© 2025 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
      • Crypto Betting
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Advertise

© 2025 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.