With the rise of crypto currency, so to came the rise of energy consumption. On average, crypto mining, specifically Bitcoin mining, consumes over 1,173 kilowatt hours of electricity.
This amount of energy is astronomical. The equivalent usage could go towards “power[ing] the typical American home (and city) for six weeks,” (fortune.com). In the shadow of this significant rise in energy consumption, Kosovo has taken steps to complicate the process it takes to mine various cryptocurrency coins.
In October of 2021, Kosovo lawmakers motioned a bill in front of parliament to begin addressing this energy crisis that has arisen from crypto mining. This bill is currently still pending, but in its place, a temporary ban has been implemented in the city of Kosovo which resulted in hundreds of miners within the city being seized.
Over the course of the past several weeks, over 270 different mining mechanisms have been seized by Kosovo police. “The confiscated equipment uses as much electricity as 500 homes a month or between 60,000 and 120,000 euros ($68,000 and 136,000)” (economictimes.com).
The seizing of this vital equipment has resulted in immense fear in the markets as this seems to be the start of European countries taking steps to restrict crypto mining in the name of energy consumption & limitations.
With massive steps taking place in one of the worlds cheapest locations for electricity, the future may appear dim as bigger countries take note of their crypto-energy related energy consumption.
The fight for resources in the worlds biggest cities might be commencing. But such a fight can only result in ingenuity. It is only a matter of time before it is determined this ingenuity will expand in the already globally challenged energy markets, or the young crypto markets.