Kosovo, a country in Europe, has banned cryptocurrency and Bitcoin mining due to rising energy prices and blackouts. Miners in the country have begun selling off their mining equipment as a result of the crackdown on Bitcoin mining.
Over 90% of the country’s energy is supplied by low-quality coal extracted in enormous amounts in Kosovo, known as “Lignite.”
As a result, the country’s energy bills are reduced. As a result, it is the EU country with the lowest energy consumption prices. As a result, the number of people mining BTC in Kosovo has increased dramatically in recent years.
However, the country has recently faced considerable issues as a result of rising fuel prices caused by a lack of natural gas in Europe and the collapse of Kosovo’s largest thermal power plant. These variables resulted in situations such as power outages and shortages.
The week has been profitable for Bitcoin professionals willing to take a risk and work with Bitcoin mining machines in the Balkan States. Thousands of Kosovans have begun posting on various social media platforms such as Telegram and Facebook, as well as other well-known locations, in an attempt to sell off their mining machines at lower costs.
CryptoKapo, a crypto pundit and administrator of some of the country’s most important crypto forums, weighed in on the situation. He explained that BTC miners in Kosovo are currently panicking and selling or relocating their Bitcoin mining equipment to nearby regions.
It’s worth noting that all of the panicked social media protests took place after the Kosovan government imposed an immediate, albeit temporary, ban on all bitcoin mining. The administration explained that crypto mining was consuming the country’s electricity and causing an energy crisis in the Balkan state.
Bitcoin and other digital currencies use the PoW (Proof of Work) algorithm. The PoW consensus mechanism entails computers solving complicated puzzles with high-power processors, resulting in the creation of new tokens. Then, after successfully creating or mining currencies, users are rewarded with tokens according to the amount of processing power they provide.
It’s clear which crypto assets are now being mined the most in Kosovo, one of the EU’s poorest countries. Given the country’s low energy costs and the fact that Bitcoin now trades for more than £31,500 per Bitcoin, the country sees a high volume of Bitcoin mining activity.
In addition, the Serbian region hosts the most cryptocurrency mining in the northern half of Kosovo.
Unfortunately for the majority of cryptocurrency miners in Kosovo, the federal government has just lately imposed a tight prohibition on cryptocurrency mining. They did this in order to keep energy prices from skyrocketing.
