Kosovo Bans Cryptocurrency Mining Amid Soaring Energy Global Prices

Kosovo by Mrika Selimi Via Unsplash
Kosovo by Mrika Selimi Via Unsplash

Kosovo has officially banned the mining of cryptocurrencies to control electricity use across the country, as it struggles with an energy crisis following the soaring global prices.

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The government stated that security officials will identify and crack down on sources of cryptocurrency mining. The process of mining cryptocurrencies is highly energy-intensive. It involves solving complex mathematical equations by the computer, and this results in high electricity consumption.

Although this only applies to cryptos that rely on the proof-of-work model during the mining, it would be hard for the authorities to identify which miners are mining what. Therefore, it would be safer to completely ban the mining process instead.

Kosovo isn’t the only one grappling with sharp price increases. In fact, all of Europe is having the same problem. But, Kosovo’s case is a bit more complicated, since the country is facing blackouts amid an electricity shortage.

The Balkan state’s largest coal-fired power plant was shut down last month citing technical issues. The government was consequently forced to import electricity at very high prices.