At this time Kuwait’s government is struggling with a unique but serious crisis. The country is trapped in the power crisis due to unlawful crypto mining. These mining operations running unlicensed have created a serious crisis in front of the country’s power systems.
What is the matter and what steps did the government take
For the past few months in Kuwait, the power consumption suddenly reached a record level. Initially it was deemed to be the result of increased use of heat and AC, but the authorities started investigating when unusual conferences were seen in some areas.
During the raids, many warehouses, houses and closed offices detected unlawful crypto mining operations, where a large number of mining machines were running without a license. These machines were mining crypto tokens with a secret power from domestic electricity connection.
The government has taken action on more than 20 mining sites on charges of power theft and is now considering bringing blockchain based electricity monitoring system, so that such incidents can be stopped in future.
Why is the issue of crypto mining and power consumption important?
According to a report published in 2022, Bitcoin Mining The 150 terravot power consumed alone, which is more than the annual consumption of the entire country like Argentina. This causes about 65 megaton co₂ emission, which is equal to the total emission of Greece. This energy is mainly obtained from fossil fuel, which further increases the problem of climate change. Therefore, the issue of Crypto Mining and Power Constitution is extremely important not only with technology but also with environment and social personal.
Global crisis has become unlawful crypto mining not just for Kuwait
This case of Kuwait is not unique. Even before this, many countries have faced power crisis due to unlawful crypto mining.
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The situation in Georgia had deteriorated so much that there was a blackout in the entire areas. There the government had to increase monitoring especially on mining sites.
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Iran also raided more than 7000 Unlawful Crypto Mining sites and seized thousands of machines, as these caused power shortage across the country.
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Kosovo banned the crypto mining directly in 2022, when the power demand was not being met.
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In Kazakhstan, the minors had increased the demand for power by 8%, causing the power plants to fail.
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Unlawful Crypto mining operations became a major cause of power theft and grid pressure even in countries like Thailand, Russia, LAOS and Britain.
Overall, this case is no longer limited to only a few countries Unlawful Crypto Mining is becoming a global challenge. If you want to know in detail How Crypto Mining is affecting the environmentSo click on this link.
But solutions also exist: Inexperienced Crypto Mining and New Options
While Crypto Mining Power is causing chrysis, on the other hand some countries and projects are working towards making it sustainable. Inexperienced Crypto Mining is a new direction, in which crypto mining is done with renewable energy such as solar, wind and hydro. For example, countries like Iceland, Norway and Bhutan are doing Bitcoin mining with 100 percent green energy.
Apart from this, some new coins are made on algorithms that reduce electricity consumption very much:
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Evidence of Stake (POS): Ethereum himself shifted to POS in 2022, which reduced his energy usage to 99 percent.
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Chia Coin: It does storage based mining, which uses hard drive instead of CPU, which reduces electricity.
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Projects like KASPA are focusing on high efficiency asic hardware which also reduce power consumption with performance.
If you have to increase the crypto adoptation in the future at the global level, then you have to focus on these sustainable options.
Conclusion
The case of Kuwait shows that Crypto Mining is no longer the issue of internet or finance, but it is also directly affecting the National Infrastructure. The example of Georgia states that if there is no action in time, the power grid may have a huge impact. But the good thing is that there are options for sustainable mining. If regulations and technology are used in the right direction, the crypto will not be harmful for both mining environment and infrastructure.
