Kosovo bans cryptocurrency mining operations during global energy crisis

In response to the energy crisis caused by rising global prices, Kosovo has banned cryptocurrency mining to limit electricity consumption. The government announced that security agencies would identify and destroy cryptocurrency mining areas.

Mining is a labor intensive process of identifying digital markets for the benefit of cryptocurrency.

As all of Europe grappled with rising prices, Kosovo used the electric circuit when there was a shortage of electricity. Last month, the biggest coal-fired power station in the Balkans in Kosovo was shut down due to technical issues, forcing the government to import electricity at high prices.

The 60-day state of emergency, announced in December last year, urged the government to allocate more money to electricity and to tighten restrictions on electricity use.

The fighting sparked protests and people demanded the withdrawal of Economy Minister Artene Rizvanoli.

For a number of reasons, including insufficient exports to Russia, electricity prices have increased across Europe and demand for gas is high as the economy recovers from a downturn.

Geopolitical tensions between Europe and Russia have exacerbated the surge in natural gas prices. One third of European natural gas comes from Russia. Europe accuses Russia of banning oil supplies from unrest in eastern Ukraine, which Russia denies.

The result of the energy crisis has made Kosovo more difficult than other European countries. Police said last month that 40% of the energy Kosovo uses is exported.

On Tuesday, Rizvanolli announced that the government has decided to ban so-called cryptocurrency mining to reduce the effects of global warming.

Mining cryptocurrencies like Bitcoin require a computer (usually a specialized "mining machine") to connect to the profitable network of the Internet. By providing Chinese power to identify network companies, miner owners can gain new benefits, which is profitable business enterprise.

However, it requires a lot of power because it requires a lot of calculator.

Until recently, Kosovo was one of the cheapest destinations in Europe. In this environment, cryptocurrency mining has gained popularity among young people in Kosovo. This practice was particularly prevalent in northern Kosovo, where the Serbs ignored the country's independence and refused to pay electricity bills.

Concerns about the environmental impact of this process have prompted some countries to resort to cryptocurrency mining. Last year Iran announced a four-month ban on the daily use of more than 2 GW of grid electricity.