Cryptocurrency has now become a double-edged sword where on one hand it’s perceived to be promoting decentralized finance. On the other hand, the mining process which is fundamental for the major protocols such as Ethereum and Bitcoin is facing a backlash for environmental reasons.
Recently we have seen Kazakhstan going through an energy crisis because of crypto mining.
Kosovo currently is going through a much similar situation. Over the last few days, they have seized hundreds of machines that are related to crypto mining around the country.
On Tuesday the government decided to put a stop to all crypto mining operations to stabilize the energy consumption which is crippling the country at the moment.
Herukan Murati, took to Facebook to shed some light on the issue. In a post, he stated that the confiscated equipment uses enough energy to power at least 500 homes per month. He also stated that crypto mining is only benefiting a handful of persons at the expense of honest taxpayers.
“We cannot allow the illegal enrichment of some, at the expense of taxpayers.”
The situation in Kosovo is concerning, the country had to shut down two of its power plants in order to placate the energy situation.
At the moment, as the crypto market continues to tumble, it remains to be seen what will happen. Energy consumption is a debate that has taken center stage within the crypto space. It’s just not sustainable and it’s a problem that key players within the industry will have to think about.
