Kazakhstan might build a nuclear power plant in order to sustain its crypto mining activities and sustain its growth amid the energy crisis that the country is facing so let’s read more in our latest cryptocurrency news today.
Kazakhstan’s President Kassym-Jomart Tokayev proposed a new building for a nuclear power plant to sustain the country’s mining growth and the suggestion was made during a meeting with the bankers following various proposals that aim to increase the contribution of the domestic financial system for economic development and the well being of the citizens. After China’s crackdown on crypto mining, Kazakhstan became the perfect spot for Chinese miners to migrate and the lack of government intervention, as well as low energy costs, turned the country into a promising destination.
Kazakhstan is in the second place for worldwide control of BTC mining power after the US showing an 18.1% share of the hash rate in the world according to the Index’s IP data from the Cambridge Centre for Alternative Finance which implies a growing demand that the energy supply of the country wasn’t ready. Tokayev accepted the country is seeing the first signs of power shortages in Kazakhstan considering it to be a result of the fast growth in crypto mining operations. The power consumption increased at huge rates as well with 8% of the growth in 2021 while the regular growth in consumption is between 1% and 2% per year.
The president also talked about an unpopular decision with mentions of creating a nuclear power plant but recieved a huge backlash and criticism in 2019 but now states the role of a leader to make such decision, as he said:
“I think that ultimately we will finally come to such a decision. We are already feeling the first signs of a shortage of electricity in Kazakhstan. Of course, there is no total deficit. The balance is roughly zero. But the first signs are indicated. Therefore, looking into the future, we will have to make inherently unpopular decisions on the construction of a nuclear power plant.”
This is not the first time Tokayev proposed to create a nuclear power plant and back in 2019 he carried a discussion with President Vladimir Putin who offered assistance in technology and training. The proposal didn’t go well with the citizens who fear the environmental implications, costs, and energy dependence on Russia. The reaction from the citizens was strong enough to push the idea aside for now but now the president suggests this is something that they have to do and there’s no other way around it.
