{"id":44851,"date":"2022-01-17T16:04:19","date_gmt":"2022-01-17T16:04:19","guid":{"rendered":"https:\/\/packetstormsecurity.com\/news\/view\/33006\/Panic-As-Kosovo-Pulls-The-Plug-On-Its-Energy-Guzzling-Bitcoin-Miners.html"},"modified":"2022-01-17T16:04:19","modified_gmt":"2022-01-17T16:04:19","slug":"panic-as-kosovo-pulls-the-plug-on-its-energy-guzzling-bitcoin-miners","status":"publish","type":"post","link":"https:\/\/www.threatshub.org\/blog\/panic-as-kosovo-pulls-the-plug-on-its-energy-guzzling-bitcoin-miners\/","title":{"rendered":"Panic As Kosovo Pulls The Plug On Its Energy Guzzling Bitcoin Miners"},"content":{"rendered":"<p class=\"dcr-o5gy41\">For bitcoin enthusiasts in <a href=\"https:\/\/www.theguardian.com\/world\/kosovo\" data-component=\"auto-linked-tag\" data-link-name=\"in body link\">Kosovo<\/a> with a breezy attitude to risk, it has been a good week to strike a deal on computer equipment that can create, or \u201cmine\u201d, the cryptocurrency.<\/p>\n<p class=\"dcr-o5gy41\">From Facebook to Telegram, new posts in the region\u2019s online crypto groups became dominated by dismayed Kosovans attempting to sell off their mining equipment \u2013 often at knockdown prices.<\/p>\n<p class=\"dcr-o5gy41\">\u201cThere\u2019s a lot of panic and they\u2019re selling it or trying to move it to neighbouring countries,\u201d said cryptoKapo, a crypto investor and administrator of some of the region\u2019s largest online crypto communities.<\/p>\n<p class=\"dcr-o5gy41\">The frenetic social media action follows an end-of-year announcement by Kosovo\u2019s government of an immediate, albeit temporary, ban on all crypto mining activity as part of emergency measures to ease a crippling energy crisis.<\/p>\n<p class=\"dcr-o5gy41\">Bitcoin and other cryptocurrencies are created or \u201cmined\u201d by high-powered computers that compete to solve complex mathematical puzzles in what is a highly energy-intensive process that rewards people based on the amount of computing power they provide.<\/p>\n<p class=\"dcr-o5gy41\">The incentive to get into the mining game in Kosovo, one of Europe\u2019s poorest countries, is obvious. The cryptocurrency currently trades at more than \u00a331,500 a bitcoin, while Kosovo has the cheapest energy prices in <a href=\"https:\/\/www.theguardian.com\/world\/europe-news\" data-component=\"auto-linked-tag\" data-link-name=\"in body link\">Europe<\/a> due in part to more than 90% of the domestic energy production coming from burning the country\u2019s rich reserves of lignite, a low-grade coal, and fuel bills being subsidised by the government.<\/p>\n<p class=\"dcr-o5gy41\">The largest-scale crypto mining is thought to be taking place in the north of the country, where the Serb-majority population refuse to recognise Kosovo as an independent state and have consequently not paid for electricity for more than two decades.<\/p>\n<p class=\"dcr-o5gy41\">There is serious money to be made \u2013 and in a time of ready energy supply it was being made. The number of people mining cryptocurrencies in Kosovo is thought to have skyrocketed in recent years. Groups such as Albanian Crypto Amateurs on Facebook and Crypto Eagles on Telegram have exploded with thousands of new members, though it is unclear how many are mining cryptocurrency, or on what scale.<\/p>\n<p class=\"dcr-o5gy41\">But the good times appear to be over \u2013 at least for now \u2013 and the developments in Kosovo highlight one of the big questions about the future of bitcoin and other such digital currency.<\/p>\n<p class=\"dcr-o5gy41\">The latest calculation from Cambridge University\u2019s <a href=\"https:\/\/cbeci.org\/\" title data-link-name=\"in body link\">bitcoin electricity consumption index <\/a>suggests that global bitcoin mining consumes 125.96 terawatt hours a year of electricity, putting its consumption above Norway (122.2 TWh), Argentina (121 TWh), the Netherlands (108.8 TWh) and the United Arab Emirates (113.20 TWh).<\/p>\n<figure id=\"88e82a35-f2d6-4713-8a67-f11911557c6b\" class=\" dcr-10khgmf\">\n<div class=\"dcr-1b267dg\"><picture itemprop=\"contentUrl\"><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/c0ed8722518b6172b514efe46f85a37b557a7788\/0_166_4971_2983\/master\/4971.jpg?width=620&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=2abccda9774f1b96316131ba24ec172f 1240w\" media=\"(min-width: 980px) and (-webkit-min-device-pixel-ratio: 1.25), (min-width: 980px) and (min-resolution: 120dpi)\"><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/c0ed8722518b6172b514efe46f85a37b557a7788\/0_166_4971_2983\/master\/4971.jpg?width=620&amp;quality=85&amp;auto=format&amp;fit=max&amp;s=7719bead034523ce797a493bf5106e6c 620w\" media=\"(min-width: 980px)\"><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/c0ed8722518b6172b514efe46f85a37b557a7788\/0_166_4971_2983\/master\/4971.jpg?width=620&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=2abccda9774f1b96316131ba24ec172f 1240w\" media=\"(min-width: 740px) and (-webkit-min-device-pixel-ratio: 1.25), (min-width: 740px) and (min-resolution: 120dpi)\"><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/c0ed8722518b6172b514efe46f85a37b557a7788\/0_166_4971_2983\/master\/4971.jpg?width=620&amp;quality=85&amp;auto=format&amp;fit=max&amp;s=7719bead034523ce797a493bf5106e6c 620w\" media=\"(min-width: 740px)\"><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/c0ed8722518b6172b514efe46f85a37b557a7788\/0_166_4971_2983\/master\/4971.jpg?width=620&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=2abccda9774f1b96316131ba24ec172f 1240w\" media=\"(min-width: 660px) and (-webkit-min-device-pixel-ratio: 1.25), (min-width: 660px) and (min-resolution: 120dpi)\"><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/c0ed8722518b6172b514efe46f85a37b557a7788\/0_166_4971_2983\/master\/4971.jpg?width=620&amp;quality=85&amp;auto=format&amp;fit=max&amp;s=7719bead034523ce797a493bf5106e6c 620w\" media=\"(min-width: 660px)\"><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/c0ed8722518b6172b514efe46f85a37b557a7788\/0_166_4971_2983\/master\/4971.jpg?width=605&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=954cfb7d22f781c3683135e2f136a887 1210w\" media=\"(min-width: 480px) and (-webkit-min-device-pixel-ratio: 1.25), (min-width: 480px) and (min-resolution: 120dpi)\"><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/c0ed8722518b6172b514efe46f85a37b557a7788\/0_166_4971_2983\/master\/4971.jpg?width=605&amp;quality=85&amp;auto=format&amp;fit=max&amp;s=7b103842024bffab02784a393f183e65 605w\" media=\"(min-width: 480px)\"><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/c0ed8722518b6172b514efe46f85a37b557a7788\/0_166_4971_2983\/master\/4971.jpg?width=445&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=cc67ec02b731ef781b3e0e860283e71d 890w\" media=\"(min-width: 375px) and (-webkit-min-device-pixel-ratio: 1.25), (min-width: 375px) and (min-resolution: 120dpi)\"><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/c0ed8722518b6172b514efe46f85a37b557a7788\/0_166_4971_2983\/master\/4971.jpg?width=445&amp;quality=85&amp;auto=format&amp;fit=max&amp;s=617d6d99d9f3b75ab22e790e0784e8e1 445w\" media=\"(min-width: 375px)\"><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/c0ed8722518b6172b514efe46f85a37b557a7788\/0_166_4971_2983\/master\/4971.jpg?width=445&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=cc67ec02b731ef781b3e0e860283e71d 890w\" media=\"(min-width: 320px) and (-webkit-min-device-pixel-ratio: 1.25), (min-width: 320px) and (min-resolution: 120dpi)\"><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/c0ed8722518b6172b514efe46f85a37b557a7788\/0_166_4971_2983\/master\/4971.jpg?width=445&amp;quality=85&amp;auto=format&amp;fit=max&amp;s=617d6d99d9f3b75ab22e790e0784e8e1 445w\" media=\"(min-width: 320px)\"><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/c0ed8722518b6172b514efe46f85a37b557a7788\/0_166_4971_2983\/master\/4971.jpg?width=445&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=cc67ec02b731ef781b3e0e860283e71d 890w\" media=\"(min-width: 0px) and (-webkit-min-device-pixel-ratio: 1.25), (min-width: 0px) and (min-resolution: 120dpi)\"><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/c0ed8722518b6172b514efe46f85a37b557a7788\/0_166_4971_2983\/master\/4971.jpg?width=445&amp;quality=85&amp;auto=format&amp;fit=max&amp;s=617d6d99d9f3b75ab22e790e0784e8e1 445w\" media=\"(min-width: 0px)\"><img decoding=\"async\" alt=\"Protest against power cuts in Pristina\" src=\"https:\/\/i.guim.co.uk\/img\/media\/c0ed8722518b6172b514efe46f85a37b557a7788\/0_166_4971_2983\/master\/4971.jpg?width=445&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=cc67ec02b731ef781b3e0e860283e71d\" height=\"2983\" width=\"4971\" loading=\"lazy\" class=\"dcr-1989ovb\"><\/picture><\/div><figcaption class=\"dcr-w6u133\"><span class=\"dcr-1o7qj7t\"><svg width=\"18\" height=\"13\" viewBox=\"0 0 18 13\"><path d=\"M18 3.5v8l-1.5 1.5h-15l-1.5-1.5v-8l1.5-1.5h3.5l2-2h4l2 2h3.5l1.5 1.5zm-9 7.5c1.9 0 3.5-1.6 3.5-3.5s-1.6-3.5-3.5-3.5-3.5 1.6-3.5 3.5 1.6 3.5 3.5 3.5z\" \/><\/svg><\/span><span class=\"dcr-19x4pdv\">A protest against power cuts in Pristina. The cuts were introduced because of an increase in consumption, low domestic production and high import prices.<\/span> Photograph: Valdrin Xhemaj\/EPA<\/figcaption><\/figure>\n<p class=\"dcr-o5gy41\">Meanwhile, Kosovans spent the final days of 2021 in darkness as domestic and international factors combined to cause energy shortages and rolling blackouts across the country. At the peak of the recent crisis, an unforeseen shutdown at one of its two ageing power plants left Kosovo importing about 40% of its energy on international markets \u2013 where prices have soared \u2013 and the government was forced to provide an emergency subsidy to help meet the costs.<\/p>\n<p class=\"dcr-o5gy41\">Kosovo\u2019s minister of economy, Dr Artane Rizvanolli, said the ban had been a \u201cno-brainer\u201d.<\/p>\n<p class=\"dcr-o5gy41\">\u201cWe have allocated \u20ac20m for subsidising energy, which is probably not going to be sufficient, and this is taxpayers\u2019 money that is going to subsidise electricity consumption,\u201d she said. \u201cOn the other hand we have crypto mining, which is a highly energy-intensive activity and is not regulated.\u201d<\/p>\n<p class=\"dcr-o5gy41\">Kosovo is not alone. Last September, the 10 most powerful regulators in China vowed to kill off what was then the world\u2019s biggest cryptocurrency mining industry.<\/p>\n<p class=\"dcr-o5gy41\">In Iceland, the country\u2019s national power company, Landsvirkjun, has said it will <a href=\"https:\/\/www.ndtv.com\/business\/landsvirkjun-the-national-power-company-of-iceland-turns-away-bitcoin-miners-amid-power-malfunction-low-water-reservoir-levels-2650373\" title data-link-name=\"in body link\">turn away potential cryptocurrency miners<\/a> as the country is experiencing power shortages. Last week, a powerful <a href=\"https:\/\/energycommerce.house.gov\/newsroom\/press-releases\/ec-announces-oversight-hearing-on-the-energy-impacts-of-cryptocurrency\" title data-link-name=\"in body link\">committee in the US Congress<\/a> announced it would convene a hearing on the issue. US cryptocurrency miners are believed to be the largest consumers of energy, followed by Kazakhstan and the Russian Federation.<\/p>\n<p class=\"dcr-o5gy41\">\u201cIt\u2019s time to understand and address the steep energy and environmental impacts it is having on our communities and our planet,\u201d said committee chairman Frank Pallone and Diana DeGette, who heads its oversight panel.<\/p>\n<p class=\"dcr-o5gy41\">Alex de Vries, a Paris-based economist, said his initial estimates in a paper to be published later this year suggest just a quarter of the energy used by miners is renewable: \u201cThe question really is: what are you getting in return for that?\u201d<\/p>\n<p class=\"dcr-o5gy41\">Jason Deane, chief bitcoin analyst at Quantum Economics, said he believed there were a host of advantages, including the offer of instant, virtually free, financial transactions carried out without the use of a third party, with certainty that there will be instant settlement, and that the current teething problems need to be put in perspective.<\/p>\n<figure id=\"6ee9a03d-1d80-4aa1-82d7-8b075524d5b1\" class=\" dcr-1mfia18\"><\/figure>\n<p class=\"dcr-o5gy41\">Since the Kosovan authorities made the decision, police and customs officers have begun conducting regular raids, seizing hundreds of pieces of hardware.<\/p>\n<p class=\"dcr-o5gy41\">While a 60-day state of energy emergency remains in place, the prospect of upcoming regulation and energy bill price rises leaves the future anything but certain.<\/p>\n<p class=\"dcr-o5gy41\">\u201cThere are a lot of people who have invested in crypto mining equipment and it\u2019s not a small investment,\u201d cryptoKapo said. \u201cPeople have even taken out loans to invest and the impact now is very bad on their lives.\u201d<\/p>\n<p>READ MORE <a href=\"https:\/\/packetstormsecurity.com\/news\/view\/33006\/Panic-As-Kosovo-Pulls-The-Plug-On-Its-Energy-Guzzling-Bitcoin-Miners.html\">HERE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>READ MORE HERE&#8230;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","footnotes":""},"categories":[60],"tags":[9823],"class_list":["post-44851","post","type-post","status-publish","format-standard","hentry","category-packet-storm","tag-headlinegovernmentcryptography"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Panic As Kosovo Pulls The Plug On Its Energy Guzzling Bitcoin Miners 2026 | ThreatsHub Cybersecurity News<\/title>\n<meta name=\"description\" content=\"ThreatsHub Cybersecurity News | ThreatsHub.org | Cloud Security &amp; Cyber Threats 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