28 Kyrgyz bitcoin mining companies face blackout

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The water crisis is real, and the whole world is facing problems with the steady water supply and availability of water resources. In recent news, bitcoin mining companies in Kyrgyzstan were left shocked when they disconnected from the power supply.

It was reported that on 31st July, 28 mining companies were disconnected from the power supply so that water could be saved in the Toktogul reservoir. This was done to collect enough water for the winters season.

The Chairman of the National Energy Holding noticed that the volume of water in Toktogul reservoir was 16.4 billion cubic meters on 30th July, which was 2.2 billion less than 2018. The authorities have planned to accumulate 17 billion cubic meters of water by 1st October.

The government does not control the activities of mining and the distribution and circulation of cryptocurrencies, but the authorities consider these activities as illegal. Crypto mining requires a large amount of electricity when this electricity can be used to send to production facilities.

Mining centers have requested for 20 megawatts of power which the cabinet thinks can be used for better purposes. They believe that this electricity can be sent to the real working sector of the economy, which will create hundreds of jobs, taxes, and deductions will be paid.

In mid-July, in the area os Bishkek, a crypto mining farm was liquidated by the Kyrgyz financial police. It was found that the farm was consuming an excessive amount of energy, and it also indulged in producing a currency that was outside the control of the authorities making the whole project illegal.

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Alexander Aryan
Alexander Aryan
After completing his Masters in Business Administration and Management from the California State University, Alexander dedicated his life into studying and writing about bitcoin and the technology behind it as he believes it to be the money of the future. Apart form being a writer, Alex is also a great speaker and loves to participate in blockchain events.

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