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<ul><li><keyword id="6380984" type="General" weightage="20" keywordseo="kazakhstan" source="Orion">Kazakhstan</keyword>’s President is a proponent of <keyword id="43462" type="General" weightage="20" keywordseo="nuclear-power" source="Orion">nuclear power</keyword>, but the country has a legacy of disasters caused by nuclear tests.</li><li>The country’s share in the global <keyword id="6289215" type="General" weightage="20" keywordseo="crypto-mining" source="Orion">crypto mining</keyword> hash rates have grown four folds over the past year.</li><li>An energy shortage was ensuing in Kazakhstan well before miners entered the fray to make the burgeoning problem worse.</li></ul>China shunned Bitcoin miners, forcing them to move to other countries, like it’s neighbour Kazakhstan. But wherever miners go, they take their massive electricity requirements with them. Which is why the former Soviet Union state is now looking to nuclear power to meet its needs, despite its torrential history with the resource. The country is betting on crypto mining to give a boost to its economy — a $1.5 billion boost over the next five years, according to the country’s Data Center Industry and Blockchain Association (<a href="https://kapital.kz/tehnology/99797/kriptomayning-prinosit-ekonomike-kazakhstana-98-mlrd-tenge-yezhegodno.html">NABDC</a>). And, data compiled by the <a href="https://ccaf.io/cbeci/mining_map">University of Cambridge</a> shows that Kazakhstan’s share in mining hash rate has quadrupled over the past one year, which makes it the second largest mining hub in the world after the US. <cmsannotation type="cmsannotation" annotationid="wazirx" comment="wazirx" text="wazirx">wazirx</cmsannotation> This includes the 87,849 mining machines from Chinese companies that shifted base after the crackdown as per the <a href="https://www.ft.com/content/0dbe4f9f-a433-4288-858e-c4b852f4c340">Financial Times</a>. However, the sudden boom has led to a shortage of domestic power supply in the country. Kazakhstan’s President, Kassym-Jomart Tokayev, believes that nuclear energy may be the inevitable solution to the problem. In a <a href="https://deeptechcentral.com/news/crypto/kazakhstan-might-build-nuclear-plant-to-keep-bitcoin-mining-migrants/">meeting</a> on November 19, Kassym-Jomart Tokayev, the President of the country, told bankers that a nuclear power plant could help ease the impact on the country’s electricity grids. <div type="ExtQuote" text="Looking into the future, we will have to make an unpopular decision about the construction of a nuclear power plant." auname="Kazakhstan’s President, Kassym-Jomart Tokayev, told bankers at a meeting in the nation’s largest city, Atla, last Friday"></div> <cmsannotation type="cmsannotation" annotationid="Kazakhstan’s plans to reintroduce nuclear energy may make some uneasy" comment="subhead" text="Kazakhstan’s plans to reintroduce nuclear energy may make some uneasy">Kazakhstan’s plans to reintroduce nuclear energy may make some uneasy</cmsannotation> Despite the economic potential, Tokayev’s decision to try out nuclear power would be unnerving to many citizens. After all, Kazakhstan has a history of troubles with nuclear power. The issues date back to August 1949, when a blast at the Russian Semipalatinsk nuclear testing site rocked the country. This nuclear test released 22 kilotons of TNT into the atmosphere, and was the first of 456 such nuclear explosions conducted in the country in that era. <div type="image" title="Semipalatinsk_edited" msid="87909115" hostid="261" caption="&amp;lt;p&amp;gt;The Semipalatinsk Test Site , also known as &amp;#39;The Polygon&amp;#39;, was the primary testing venue for the Soviet Union&amp;#39;s nuclear weapons&amp;lt;/p&amp;gt;"></div> The history is evidently important as well, since 87% of Kazakhstan’s electricity is <a href="https://www.trade.gov/country-commercial-guides/kazakhstan-power-generation">generated</a> from fossil fuels right now, despite being one of the richest countries in terms of Uranium deposits. Another 12% of the country’s electricity comes from hydroelectric power, which shows a general reluctance to turn to nuclear power. The country had shut down its only nuclear power plant back in 1999. “Kazakhstan has some of the largest uranium deposits in the world and is the world’s largest uranium producer. Although plans have long existed to build additional nuclear power plants, little progress has been made on constructing these units. Kazakhstan’s economy is highly energy-intensive and uses two to three times more energy than the average for OECD countries,” said a <a href="https://www.trade.gov/country-commercial-guides/kazakhstan-power-generation">post</a> by the International Trade Administration, from last year. To be clear, Tokayev himself has been a proponent of moving forward with nuclear power. “I myself believe that it’s time to substantially consider this issue, since Kazakhstan needs a nuclear power plant,” he <a href="https://eurasianet.org/nuclear-power-riles-kazakhs-once-again">said</a> at a business forum in September. In May, Taokyev had said that nuclear “phobias are inappropriate” and that while the country wouldn’t rush to nuclear power, it should not take too long either, as it stands to face an energy deficit by 2030. A entry of Bitcoin and other crypto miners may have brought that timeline even closer. SEE ALSO: <a href="https://www.businessinsider.in/investment/news/heres-a-quick-look-at-how-the-evolution-of-cryptocurrencies-has-played-out-in-india/slidelist/87902549.cms">India’s crypto regulations have been caught in limbo — here’s how the past few years have played out</a> <a href="https://www.businessinsider.in/cryptocurrency/news/fud-takes-over-indian-crypto-markets-after-government-lists-crypto-bill-for-discussion/articleshow/87891795.cms">FUD takes over Indian crypto markets after government lists crypto bill for discussion</a> <a href="https://www.businessinsider.in/cryptocurrency/news/as-india-looks-to-reign-in-crypto-heres-a-look-at-how-theyre-regulated-across-the-world/slidelist/87889544.cms">As India looks to rein in crypto, here's a look at how they're regulated across the world</a>

Bitcoin miners may push Kazakhstan towards nuclear power despite its uneasy history

<ul><li>Cryptocurrency miners in Kazakhstan have been causing power shutdowns and blackouts.</li><li>The sudden increase in crypto mining is reportedly due to mining firms from China flocking to the country after the ban earlier this year.</li><li>Kazakhstan now plans to charge registered miners in the country and ration electricity to meet the demands.</li></ul><keyword id="6097384" type="General" weightage="20" keywordseo="cryptocurrency-mining" source="Orion">Cryptocurrency mining</keyword> is reportedly causing an <a href="https://www.businessinsider.in/cryptocurrency/news/cryptocurrency-miners-are-taking-a-toll-on-power-grids-in-russia-iran-kazakhstan-belarus-pushing-for-regulation/articleshow/87132961.cms" data-type="tilCustomLink">electricity crisis in Kazakhstan</a>. With an increase in demand for electricity by <a href="https://www.businessinsider.in/cryptocurrency/news/ex-rbi-chief-raghuram-rajan-believes-only-few-cryptocurrencies-will-survive-as-dead-coins-jump-by-20-in-six-months/articleshow/87913952.cms" data-type="tilCustomLink">cryptocurrency </a>miners, there have been power shortages and even shutdowns at three power plants in October, according to a <a href="https://www.ft.com/content/086b7ec7-f71a-4214-bfa0-5644852056f3">report</a> by the Financial Times. The electricity demand in the country has increased by eight percent so far this year as compared to the usual one or two percent. There have also been electricity blackouts in six regions in Kazakhstan next month. To help curb this, KEGOC, the country’s electric grid operator plans to start rationing electricity to 50 registered miners. This is also to deal with unregistered crypto miners illegally mining the digital currency from factories and their homes. The reason behind the sudden boom in cryptocurrency mining in Kazakhstan is said to be due to the crypto ban in China earlier this year. Crypto mining firms were already flocking to Kazakhstan due to the low electricity costs but the demand jumped once the ban was imposed. The Financial Times estimates around 87,849 mining rigs have moved from China to Kazakhstan. Crypto mining is a power-intensive process Cryptocurrency mining consumes heavy power as the process of creating a new digital coin requires using large and powerful computers to solve complex cryptographic puzzles. Since cryptocurrency runs on a decentralised network with no governing body over it, each transaction is verified through mining. According to data from the University of Cambridge Bitcoin Electricity Consumption Index, bitcoin which is the most popular cryptocurrency consumes about 80 terawatt-hours of electricity annually. The Kazakhstan government is trying to make this work by charging registered miners a compensation fee of 1 tenge (about $0.0023) per kWh from 2022 onwards. It is also asking a Russian energy company, Inter RAO, to contribute to the country’s national power grid. The country’s electric grid operator will also start rationing electricity to 50 registered miners. Kazakhstan is also looking at using nuclear power to help meet the electricity demands due to crypto mining. Kazakhstan’s President, Kassym-Jomart Tokayev, in a meeting on November 19 said that a<a href="https://www.businessinsider.in/cryptocurrency/news/bitcoin-miners-may-push-kazakhstan-towards-nuclear-power-despite-its-uneasy-history/articleshow/87908996.cms" data-type="tilCustomLink"> nuclear plant</a> could help with the burden on the country's electricity grids. In addition to charging crypto miners, this is also said to help fish out illegal miners in the country. Kazakhstan isn't the only country struggling with illegal cryptocurrency mining. Iran also faces the same problem where it has 50 Bitcoin registered mining plants but 85% of the total mining operations in the country are reportedly illegal. SEE ALSO: <a href="https://www.businessinsider.in/cryptocurrency/news/million-ethereum-token-burned-since-london-hard-fork-but-transaction-costs-continue-to-be-a-pain-point/articleshow/87933378.cms" data-type="tilCustomLink">Over a million Ethereum tokens have been burned since the big upgrade, but transaction costs are still a pain point for the network</a> <a href="https://www.businessinsider.in/cryptocurrency/news/ex-rbi-chief-raghuram-rajan-believes-only-few-cryptocurrencies-will-survive-as-dead-coins-jump-by-20-in-six-months/articleshow/87913952.cms" data-type="tilCustomLink">Raghuram Rajan believes only a handful of cryptocurrencies will survive the hype — over 400 tokens have hit the dust in the last six months</a>

Cryptocurrency mining is causing power shutdowns in Kazakhstan, and China may be to blame

<ul><li>Belarus and Russia want to separate cryptocurrency miners from other power users.</li><li>According to the head of Russia’s Ministry for Energy, “It is necessary to exclude the possibility of electricity consumption by miners at tariffs for the population.”</li><li>Other countries like Kazakhstan and Iran are also in the process of putting in exclusive regulations for cryptocurrency miners to ease pressures on their respective power grids.</li></ul>Belarus and Russia are looking to separate cryptocurrency miners from other power users. And, they’re not alone. The energy consumed while mining for <a href="https://wazirx.com/signup?invite=2kpah6gr&amp;utm_source=business-insider&amp;utm_medium=referral&amp;utm_campaign=article-editorial">cryptocurrencies</a> has been a global concern for a while now — both in terms of the sheer amount consumed and its environmental impact. <div type="ExtQuote" text="&quot;To maintain the reliability and quality of power supply, we believe it is necessary to exclude the possibility of electricity consumption by miners at tariffs for the population.&quot;" auname="Nikolai Shulginov, the head of Russia’s Ministry of Energy, told reporters on the sidelines of Russian Energy Week"></div> Countries around the world, especially those which serve as hubs for cryptocurrency miners, have been looking to regulate the activity and its electricity usage. China may not have been the first but it was the loudest on the scene when it banned <a href="https://wazirx.com/signup?invite=2kpah6gr&amp;utm_source=business-insider&amp;utm_medium=referral&amp;utm_campaign=article-editorial">cryptocurrency mining</a> in the country altogether earlier this year. Power plants found to be providing electricity for such operations were warned that they may face fines or other legal penalties. Chinese miners, on the other hand, have since found new homes — transferring the burden of electricity consumption from one country to others, like Kazakhstan, the US, and Russia. <cmsannotation type="cmsannotation" annotationid="Kazakhstan is rationing its electricity as miners cross the border from China" comment="subhead" text="Kazakhstan is rationing its electricity as miners cross the border from China">Kazakhstan is rationing its electricity as miners cross the border from China</cmsannotation> Kazakhstan, the prime location for Chinese miners since it’s located just across the border, is now the second-largest <keyword id="2721952" type="General" weightage="20" keywordseo="crypto" source="Orion">crypto</keyword> miner in the world. According to data collected by <a href="https://cbeci.org/index">Cambridge University</a>, the country’s share in global mining went from 1.4% in September 2019 to over 18% as of August 2021. But becoming the new hub of <keyword id="6097384" type="General" weightage="20" keywordseo="cryptocurrency-mining" source="Orion">cryptocurrency mining</keyword> has taken a toll on the country’s power grids. "We have seen that our [country's] electricity consumption has literally increased by 7 percent in one year. That's a very big increase," the country’s Energy Minister Magzum Mirzagaliyev told <a href="https://kursiv.kz/news/biznes/2021-10/mayneram-v-kazakhstane-stanet-slozhnee-otkryvat-novye-fermy">Kursiv</a> — a local publication — noting that consumption usually grows by about 2% each year. On October 15, the national grid operator, KEGOC, announced electricity rationing after three major coal-fired power plants shut down. While the operator did not directly blame cryptocurrency miners, it said that it was cutting off customers who “over-consume.” <cmsannotation type="cmsannotation" annotationid="Cryptocurrency mining in Iran led to a four-month ban" comment="subhead" text="Cryptocurrency mining in Iran led to a four-month ban">Cryptocurrency mining in Iran led to a four-month ban</cmsannotation> Iran banned cryptocurrency mining earlier this year — for four months — due to concerns over power outages amid the soaring summer temperatures. However, mining or not, the country <a href="https://www.forbes.com/sites/dominicdudley/2021/05/28/after-years-of-warnings-iran-finally-clamps-down-on-power-hungry-bitcoin-miners/">often faces</a> a shortage of electricity during the peak winter and summer months with temperatures going into the extremes. While the country has since <a href="https://www.businessinsider.in/cryptocurrency/news/cryptocurrency-bitcoin-mining-now-legal-in-iran-but-future-still-uncertain/articleshow/86681030.cms">rolled back the restriction</a>, it continues to struggle with unregulated cryptocurrency mining. Only 50 Bitcoin farming plants have a legal license to operate while 85% of mining operations in the country reportedly continue to be illegal. <cmsannotation type="cmsannotation" annotationid="Striving to find a workaround to electricity consumed by cryptocurrency mining" comment="subhead" text="Striving to find a workaround to electricity consumed by cryptocurrency mining">Striving to find a workaround to electricity consumed by cryptocurrency mining</cmsannotation> It’s not just governments who are concerned about the electricity consumption of cryptocurrency mining. Even Elon Musk, CEO of Tesla and SpaceX, announced that his electric car company will no longer be accepting Bitcoin as a payment method until its energy consumption drops by at least 50%. Recently a cryptocurrency mining operation in New York <a href="https://apnews.com/article/bitcoin-mining-new-york-power-plant-climate-change-516dbd319394a6a30f83d94947abad20">resurrected</a> a shut down fossil fuel power plate to power 15,300 of its servers to mine for Bitcoin. According to Greenidge Ridge, its strategy keeps from putting a toll on the public power grid. However, environmentalists argue that this still does not address the underlying issue of unsustainable use. Using fossil fuel energy to create private profit may not affect the overall public supply of electricity, but is still harmful to the environment. <div type="ExtQuote" text="“The financiers of min­ing op­er­a­tions will in­sist on us­ing the cheap­est en­er­gy and so by de­f­i­n­i­tion it will be elec­tric­i­ty that has no bet­ter eco­nom­ic use.”" auname="Excerpt from the Seetee research report by Aker ASA"></div> According to a <a href="https://www.seetee.io/">Seetee</a> report by Norway-based Aker ASA, the ideal way to make cryptocurrency mining more eco-friendly is to support lawmakers that want to encourage mining in regions that already have underutilized energy sources. SEE ALSO: <a href="https://www.businessinsider.in/cryptocurrency/news/crypto-markets-restless-as-bitcoin-etf-gears-up-to-meet-the-nyse-tonight/slidelist/87128391.cms">Crypto markets restless as Bitcoin ETF gears up to meet the NYSE tonight</a> <a href="https://www.businessinsider.in/cryptocurrency/news/indian-crypto-exchange-wazirx-got-377-requests-from-law-enforcement-agencies/articleshow/87108331.cms">WazirX got 377 requests from law enforcement agencies in the last 6 months</a> <a href="https://www.businessinsider.in/cryptocurrency/news/brazil-buys-4-billion-in-crypto-ahead-of-bitcoin-law/articleshow/87109498.cms">Brazilians bought more than $4 billion in cryptocurrencies this year as the country looks to regulate Bitcoin</a>

Cryptocurrency miners are taking a toll on power grids worldwide — Russia and Belarus join other countries look to separate them from other power users

<ul><li>The Chinese government called for a severe crackdown on <keyword id="6354947" type="UNKNOWN" weightage="20" keywordseo="bitcoin">Bitcoin</keyword> mining and trading, setting off a global phenomenon that's often dubbed ‘the great mining migration.’</li><li>China contributed up to 65% of the <a href="https://wazirx.com/signup?invite=2kpah6gr&amp;utm_source=business-insider&amp;utm_medium=referral&amp;utm_campaign=microsite">Bitcoin</a> hash rate, followed by the US, Russia, Kazakhstan, Malaysia, and Iran.</li><li>Miners are actively looking for alternatives and heading west. More precisely, Texas, Florida, or even Canada.</li><li>These regions are trying to woo mines with some of the world's cheapest electricity, a higher share of green energy, and pro-crypto lawmakers.</li></ul>China has long been home to more than half the world's <keyword id="1926395" type="PERSON" weightage="20" keywordseo="Bitcoin-miners">bitcoin miners</keyword>, but now, Beijing <a href="https://www.businessinsider.in/cryptocurrency/news/chinas-inner-mongolia-region-proposed-punishments-for-companies-and-individuals-involved-in-crypto-mining/articleshow/83034373.cms">wants them out</a> as soon as possible. In May, the government called for a severe crackdown on Bitcoin mining and trading, setting off a global phenomenon that's being called ‘<a href="https://www.businessinsider.in/cryptocurrency/news/chinas-crypto-miners-are-looking-at-texas-amid-the-great-mining-migration/articleshow/83601284.cms">the great mining migration</a>.’ The movement is underway right now, and while it means the end of Bitcoin in China, it also means a new region will soon be the focal point of the crypto community. And, there’s no shortage of contenders trying to woo these miners over to their side. Since decentralized finance means the <a href="https://wazirx.com/signup?invite=2kpah6gr&amp;utm_source=business-insider&amp;utm_medium=referral&amp;utm_campaign=microsite">cryptocurrency</a> has no borders or a single regulating party, mining is also scattered. However, it is concentrated around regions that have a cheap source of electricity. Till now, China's Sichuan was a favourable destination thanks to abundant electricity via hydropower, but that's no longer a viable destination. So, where are the miners headed next? <h2 style="line-height:1.38;margin-top:0pt;margin-bottom:0pt;">Head West is the new mantra</h2> Mining is the energy-intensive process that creates new coins and maintains a log of all existing digital tokens. The cumulative processing power of the network is called the hash rate. The higher the hash rate, the healthier the blockchain is. Hence, it's a perennial process that cannot afford hiccups at a massive scale. China contributed up to 65% of the <a href="https://wazirx.com/signup?invite=2kpah6gr&amp;utm_source=business-insider&amp;utm_medium=referral&amp;utm_campaign=microsite">Bitcoin</a> hash rate, followed by the US, Russia, Kazakhstan, Malaysia, and Iran. Amid the sudden crackdown, Bitcoin’s hash rate is down by almost 40% from its peak. <div type="image" title="Average monthly hash rate breakdown by country as of April 2021" msid="83808065" hostid="261"></div> Miners are headed west to Texas and Florida — even Canada. Immediately after China's announcement in May, many big mining companies packed up and moved to the former wild west. Some of these names <a href="https://finance.yahoo.com/news/texas-governor-signs-law-creating-125552045.html">include</a> Bitmain, Blockcap, Argo Blockchain, Great American Mining, Layer1, and Riot Blockchain. The region makes for an attractive place to set up shop since it boasts of having some of the world's cheapest electricity, a higher share of green energy, and pro-crypto lawmakers. While China supplied the power, its politicians were never sold on the decentralised idea. As <a href="https://bitcoinmagazine.com/business/bitcoin-mining-firm-blockcap-moves-headquarters-to-texas-as-state-embraces-bitcoin">noted</a> by the former governor of Texas, Rick Perry, miners are a significant accelerant for job creation and sustainable economic growth. And, the current governor, Greg Abbott, has carried that trend forward and put up a huge welcome sign-board for miners. Florida is also wooing crypto miners by offering cheap electricity from its abundant nuclear power plants. “We want to make sure that our city has an opportunity to compete,” Francis Suarez, the Mayor of Miami, told <a href="https://www.cnbc.com/2021/06/17/miami-mayor-francis-suarez-trying-to-win-over-chinese-bitcoin-miners.html">CNBC</a>. “We’re talking to a lot of companies and just telling them, ‘Hey, we want you to be here.’” Similarly, Maryland has also managed to attract at least one mining company from China. A Chinese logistics firm, Fenghua International, <a href="https://twitter.com/onlyyoontv/status/1406911193126785026?ref_src=twsrc%5Etfw">confirmed</a> that it will be flying 3,000 kilos worth of mining equipment from Guangzhou in China to the mid-Atlantic state. <div type="twitter" handle="GregAbbott_TX" handlename="Greg Abbott" image="http://pbs.twimg.com/profile_images/1106778059590565889/M-ak-U5F_normal.jpg" favoritecount="14138" retweetcount="3578" status="Blockchain is a booming industry that Texas needs to be involved in.I just signed a law for Texas to create a mas… https://t.co/3w6btK8yC4" createdat="1622852603000" id="1400971477051133956"></div> <h2 style="line-height:1.38;margin-top:18pt;margin-bottom:6pt;">Limited options other than the US</h2>Other possible global destinations include countries like Kazakhstan, which is right next door to China. The nation's coal mines offer a low-cost, abundant energy supply, and the government has building-friendly policies which make it easy to construct offices quickly. BIT Mining has <a href="https://www.coindesk.com/chinese-bitcoin-mining-company-delivers-first-machines-to-kazakhstan">already shifted</a> 320 mining machines to the former Soviet republic and another 2,600 are expected to arrive soon. While the logistics of moving from China to Kazakhstan are more straightforward, but the US offers political stability, wider reach, and has far better chances of pivoting to green energy. Colder regions like Scandinavia, Russia, and Canada offer temperate or even polar temperatures, which aids in keeping the chips cool. While this helps reduce electricity consumption, it only eliminates cooling costs. Canada, for instance, has high electricity costs. And, many other formerly popular options like Iceland, Norway, and Sweden have <a href="https://www.dw.com/en/bitcoin-mining-is-scandinavias-cryptoboom-coming-to-an-end/a-57443905">reached their limit </a>in terms of generation capacity. Iran has encouraged mining over the last few years but announced a surprise ban this summer. The country has issued an order to <a href="https://www.businessinsider.in/cryptocurrency/news/iran-is-planning-to-introduce-a-legal-framework-for-crypto-even-as-bitcoin-mining-activity-remains-restricted/articleshow/83396588.cms">stop mining</a> for a few months since it cannot meet the local energy demand. The government claims the energy requirements of miners have depleted the entire grid, causing frequent blackouts. While the country tries to figure out a middle-ground, the US has taken the lead. Texas even has a brand new solution to offer — oil and gas vent capture technology. Pioneered by companies like Upstream Data, this technology captures escaping gas and turns it into energy. Companies like Great American Mining are also helping oil producers cut their gas byproducts while drilling by converting the wasted gas into potential fuel. The most significant concern surrounding the migration is Texas's capacity to handle the surge because the state's grid has historically <a href="https://www.npr.org/2021/06/02/1002277720/texas-lawmakers-passed-changes-to-prevent-more-blackouts-experts-say-its-not-eno">struggled</a> during extreme weather. During winter, blackouts were a norm in the state, and residents were left with no energy amid freezing temperatures. While companies are making a move, it'll be interesting to see how local communities react to mining farms and their thirst for electricity. <a href="https://forum.businessinsider.in/">For a more in-depth discussion, come on over to Business Insider Cryptosphere</a> — a forum where users can deep dive into all things crypto, engage in interesting discussions and stay ahead of the curve. SEE ALSO: <a href="https://www.businessinsider.in/cryptocurrency/news/heres-how-chinas-2021-crypto-crackdown-in-2021-differs-from-the-2017-ban/articleshow/83802778.cms">Here’s how China’s 2021 crypto crackdown in 2021 differs from the 2017 ban</a> <a href="https://www.businessinsider.in/business/startups/news/zomato-is-seeking-a-8-billion-valuation-in-its-ipo-does-it-make-sense/articleshow/83801848.cms">There are a few reasons why Zomato wants $8 billion valuation from its IPO -- here's a look at if it makes sense</a>

China’s Bitcoin miners are looking at US, Kazakhstan, Canada, and Europe amid the exodus — but not every option fits the bill

<ul><li><keyword id="41896" type="General" weightage="20" keywordseo="iran" source="Orion">Iran</keyword>, <keyword id="59150" type="General" weightage="20" keywordseo="kosovo" source="Orion">Kosovo</keyword>, and of course China have issued bans on <keyword id="6289215" type="General" weightage="20" keywordseo="crypto-mining" source="Orion">crypto mining</keyword> within their borders.</li><li>Iran issued a three-month ban on <keyword id="2721952" type="General" weightage="20" keywordseo="crypto" source="Orion">crypto</keyword> mining, while Kosovo has banned mining indefinitely.</li><li>Crypto mining consumes more electricity in a year than the annual consumption of a country like Finland.</li></ul>In yet another sign that regulators worldwide are concerned about the energy concerns around crypto mining, several countries have started banning <a href="https://coindcx.com/">Bitcoin</a> mining to save energy for other purposes. Earlier this month, Artane Rizvanolli, the Economy Minister of the Balkan state of Kosovo, <a href="https://www.bbc.com/news/world-europe-59879760">informed</a> the public that the state was banning crypto mining to deal with a global energy crisis. In December 2021, Kosovo was forced to shut down its largest thermal power plant following technical issues, forcing the government to import electricity from overseas. The government also announced a 60-day state of emergency to deal with Europe’s ongoing energy crisis. The continent itself has been facing surging electricity prices for some months now, stemming from a shortage of natural gas. And amid such a shortage, industries like crypto mining will be the first to fall prey. <cmsannotation type="cmsannotation" annotationid="Kosovo is not the only country to ban crypto mining" comment="subhead" text="Kosovo is not the only country to ban crypto mining">Kosovo is not the only country to ban crypto mining</cmsannotation> For instance, Kosovo isn’t the only sovereign nation looking to crack down on the industry. The Islamic Republic of Iran, located in Western Asia, placed a three-month ban on crypto mining earlier this month. That ban is <a href="https://gadgets.ndtv.com/cryptocurrency/news/iran-bitcoin-mining-ban-power-usage-electricity-shortage-2692287">supposed to end</a> on March 6, 2022, and while the ban is on authorised crypto miners, the country’s authorities will also be taking down illegal mining farms that consume over 600 megawatts of electricity. Besides Iran and Kosovo, pressure on power grids is nudging Kazakhstan towards nuclear power as the country <a href="https://www.businessinsider.in/cryptocurrency/news/bitcoin-miners-may-push-kazakhstan-towards-nuclear-power-despite-its-uneasy-history/articleshow/87908996.cms">banks on crypto mining</a> to boost its economy. China, of course, set things in motion early last year by shunning Bitcoin miners, which is what prompted many of the largest miners in the world to move to Europe, parts of the US, and more. <cmsannotation type="cmsannotation" annotationid="Bitcoin’s energy concerns" comment="subhead" text="Bitcoin’s energy concerns">Bitcoin’s energy concerns</cmsannotation> While the mining of Bitcoin and other cryptocurrencies may not have caused the world’s energy crisis, and an outright ban is not an immediate solution, it could become a casualty of these issues. The massive amounts of electricity that Bitcoin consumes have been cited as a concern more than once. Bitcoin mining is done using data centre-like operations with racks of computers that consume tons of energy every minute. According to the <a href="https://ccaf.io/cbeci/index">Cambridge Bitcoin Electricity Consumption Index</a>, a continuous estimation of the total electricity used for Bitcoin mining worldwide, 135.11 terawatt-hour of electricity per year right now, which is more than the annual <a href="https://www.stat.fi/til/ehk/2019/ehk_2019_2020-12-21_tie_001_en.html">energy consumption</a> of a country like Finland. The numbers are so high that even miners are aware of the possible concerns. According to a July 2021 report by the Bitcoin Mining Council, an open forum of Bitcoin miners, the use of sustainable energy more than doubled during the quarter ended June 2021. The report noted that while about 36.8% of the total energy consumed for Bitcoin mining in 2020 came from sustainable power, the number rose to around 56% in the June quarter last year. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/investment/news/walmart-is-the-next-big-company-with-plans-for-the-metaverse/articleshow/88938797.cms">Walmart is the next big company with plans for the metaverse</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/investment/news/north-korean-hackers-stole-400-million-in-cryptocurrency-last-year-and-theyre-in-no-rush-to-cash-out/articleshow/88896246.cms">North Korean hackers stole $400 million in cryptocurrency last year — and they're in no rush to cash out</a>

Kosovo is the latest country to ban crypto mining as it deals with a power crisis

<ul class="summary-list"><li>When Putin invaded Ukraine, experts speculated his ultimate goal was to restore the Russian Empire. </li><li>But as the war drags on, Putin's attention and military power have been fixated on Ukraine.</li></ul>When Russian President Vladimir Putin launched an unprovoked attack on Ukraine in February, experts said he was expecting a swift victory and potentially setting off on an effort to restore the Russian Empire or the USSR.Instead, seven months later, Putin's power over the post-Soviet region may be shakier than ever as his attention and military power remain fixated on Ukraine.The lack of Russian leadership in Central Asia and the Caucasus, which spans between the Black Sea and the Caspian Sea, has led to violent border clashes and frustration from Putin's allies in the region, according to a new report published in <a href="https://www.nytimes.com/2022/10/08/world/asia/russia-putin-soviet.html">The New York Times</a>.Since the fall of the Soviet Union in 1991, and even before Putin rose to power, Russia has insisted on maintaining influence over post-Soviet states, according to Taras Kuzio, a professor of political science at the National University of Kyiv Mohyla Academy."Moscow never truly accepted the verdict of 1991 and has always sought to retain its imperial influence throughout the former USSR," Kuzio wrote in a piece for the <a href="https://www.atlanticcouncil.org/blogs/ukrainealert/putins-russian-empire-is-collapsing-like-its-soviet-predecessor/">Atlantic Council</a>.Putin's desire for the West to stay out of the former Soviet Union has been clear, especially in Ukraine. One of the <a href="https://www.businessinsider.com/why-russia-is-attacking-ukraine-putin-justification-for-invasion-2022-2">reasons Putin gave for invading was the eastward expansion of the North Atlantic Treaty Organization</a>. He has demanded that Ukraine — considered an aspiring NATO member — not be allowed to join the alliance.Experts have speculated Putin was driven by a deeper desire: <a href="https://www.cnn.com/2022/06/10/europe/russia-putin-empire-restoration-endgame-intl-cmd/index.html">to restore the USSR or the historic Russian Empire</a>, which predated the Soviet Union and at one point or another <a href="https://www.businessinsider.com/putin-wants-world-travel-back-time-empires-us-un-ambassador-2022-2">included Ukraine, Finland, Belarus, Georgia, Moldova, Kazakhstan, Kyrgyzstan, and Tajikistan, among other nations</a>.But now "evidence of Russia's declining influence can be seen throughout the post-Soviet world," Kuzio said. "On the frontlines in Ukraine, Putin's invasion force is suffering from increasingly obvious manpower shortages that make a mockery of attempts to portray Russia as the world's number two military power."A violent border conflict between Kyrgyzstan and Tajikistan, both members of a military alliance with Putin, has gone largely unaddressed by Russia. "Of course, they are distracted by Ukraine," Sadyr Japarov, the president of Kyrgyzstan, recently said, according to The Times.Armenia, another member of the military alliance, has been in conflict with Azerbaijan and calling for aid from Moscow, but without success, The Times reported.The alliance, the Collective Security Treaty Organization, is made up of six post-Soviet states and has been propped up by Putin as NATO's counterpart. But it too appears to be at risk, as Armenian Prime Minister Nikol Pashinyan is furious with Moscow's lack of help and has threatened to leave the alliance, The Times reported.To make up for major losses, Russia has also had to withdraw forces stationed in some post-Soviet states to redirect them to the frontlines in Ukraine, again signaling to those states that Moscow's power is on the decline, Kuzio said.Meanwhile, the lack of Kremlin leadership in the region has left an opening for other states to step in."Russia's humiliating military setbacks in Ukraine and economic isolation from the Western world have confirmed its status as China's junior partner," Kuzio wrote, adding: "China has replaced Russia as the preeminent power in Central Asia."In addition to declining influence over post-Soviet states, Russia's relationships with powerful partners are also on uncertain ground after the <a href="https://www.businessinsider.com/russia-allies-china-india-pushed-putin-escalate-ukraine-war-experts-2022-9">leaders of both China and India last month publicly acknowledged concerns about the war in Ukraine</a>.Putin has escalated the war since, but Russia has continued to suffer humiliating defeats, such as the explosion on Saturday of a <a href="https://www.businessinsider.com/ukraine-hints-sabotage-russia-crimea-kerch-bridge-putins-70th-birthday-2022-10">key bridge connecting Crimea to the Russian mainland</a>.Have a news tip? Contact this reporter at <a href="mailto:kvlamis@insider.com?inline-read-more">kvlamis@insider.com</a>.

Putin may have wanted to restore the Russian Empire, but his power over former Soviet states is waning as his invasion of Ukraine flounders

The recent deal signed between Australia and India that ensured sale of uranium to India and supply of conventional fuel, including coal, to help India ride over acute energy shortage, has revived debates. People are questioning in which direction India’s <keyword id="53710" type="ORGANIZATION" weightage="100" keywordseo="Nuclear-energy">nuclear energy</keyword> policy is headed and the safety and feasibility of depending on <keyword id="43462" type="ORGANIZATION" weightage="20" keywordseo="Nuclear-power">nuclear power</keyword> for the country’s power requirement. 
 
First, the deal signals improved thaw in the relationship between two countries that share trade worth AUD15 billion annually. It may be noted that India is the first country to buy Australian uranium without being a signatory to the nuclear non-proliferation treaty. Australia seems to be convinced that India will use nuclear fuel only for non-military and peaceful purposes. 
 
The pact with Australia assume special significance after India’s attempt to forge a similar tie-up with Japan failed. Though Japanese companies produce vital reactor components and are keen to supply them to India, India’s status as a non-signatory to the non-proliferation treaty has prevented positive developments in this direction. Civil nuclear energy talks were also hit after the Fukushima disaster in 2011. 
 Secondly, the pact—which marked the culmination of talks started two years ago after Australia lifted a long-standing ban on selling uranium to power-starved India—means that India is one step closer to gaining global acceptability for its nuclear programme despite its refusal to ratify the nuclear non-proliferation treaty. The country virtually became an ‘untouchable’ when it came to global initiatives to control use of nuclear power for hostile purposes and exchange of nuclear technology after it conducted its second nuclear test in Pokhran in May 1988 (the first, code-named <keyword id="858028" type="UNKNOWN" weightage="80" keywordseo="Smiling-Buddha">Smiling Buddha</keyword>, being conducted in May 1974). However, the restrictions virtually fizzled out following a US deal signed in 2008 that underlined India’s burgeoning economic weight. 
 
Critics say with two-thirds of the country’s power stations being fired by coal and more than half of them are about to run out of stock, the government should have given preference to tapping into Australia's coal reserves. Nuclear power accounts for just 3 per cent of the country’s every output, compared to 3.7 percent three years ago. In fact, nuclear energy is the fourth-leading source of energy in the country behind coal (68 per cent), gas (15 percent) and hydro (12 percent). 
 
However, with 25 percent of the country’s total population having little (or no) access to electricity, the government feels that it has to increasingly rely on nuclear power as dependence on fossil sources for energy is not sustainable as reserves get depleted at a faster pace. 
 
Nuclear energy is underpenetrated, which is amply reflected by the fact that the 20 reactors that the country operates now has a combined capacity of 4,780 MW against the target of 63,000 MW by 2032 by adding nearly 30 reactors at an estimated cost of $85 billion. In line with this target, the country has signed nuclear energy agreements with 11 countries including France, Russia and Kazakhstan from where it imports uranium. 
 
However, protest from civilian groups pose the biggest threat to government’s ambitious nuclear energy targets. Both Kudankulam nuclear power project in Tamil Nadu and the 9,900 MW Jaitapur nuclear power plant to be executed by French firm Areva are stuck due to local protests. A string of hydro-power projects are also stalled due to local opposition on the basis of environmental concerns. 
 
However, with India’s status as the second-large populous nation with more than 1.2 billion people, with enormous needs—it is already the world’s fourth-largest energy consumer, behind only the US, China and Russia—the country has no option but to try and forge similar nuclear pact with other nations or face the perilous consequence of being left out in its race for being an energy-dependant country.

Why India Should Woo Global Powers For Civil Nuclear Deals

<ul class="summary-list"><li>China has re-emerged as the second-biggest bitcoin miner after the US, despite Beijing's ban on <keyword id="11893898" type="UNKNOWN" weightage="60" keywordseo="crypto" source="Orion">crypto</keyword> activity.</li><li>A surge in covert operations has made it a major mining hub again, the Cambridge Centre for Alternative Finance found.</li></ul>China has made a comeback as a global <keyword id="11971141" type="UNKNOWN" weightage="60" keywordseo="bitcoin-mining" source="Orion">bitcoin mining</keyword> powerhouse, despite Beijing's crypto crackdown.Research by the Cambridge Centre for Alternative Finance found a surge in covert mining operations post-ban means the country is now the world's second-largest location for bitcoin mining, behind the US."In China, following a sudden uptick in covert mining operations after the June 2021 government-mandated ban on Bitcoin mining, the country has re-emerged as a major mining hub," the CCAF said in its <a href="https://www.jbs.cam.ac.uk/insight/2022/bitcoin-mining-new-data-reveal-a-surprising-resurgence/">report</a> published Tuesday.China was the leading bitcoin miner until its government in October completely <a href="https://www.businessinsider.com/china-crypto-ban-bitcoin-golden-opportunity-us-blockchain-regulation-2021-10?r=US&amp;IR=T">banned</a> mining by making all cryptocurrency-related business activity illegal in the country.But Beijing's efforts to clamp down on bitcoin mining prompted a sharp rise in underground activity, according to the research.Chinese bitcoin miners were the source of 21.11% of the global hashrate, the researchers noted in their study of the period between September 2021 and January 2022."This strongly suggests that significant underground mining activity has formed in the country, which empirically confirms what industry insiders have long been assuming," the report said."Access to off-grid electricity and geographically scattered, small-scale operations are among the major means used by underground miners to hide their operations from authorities and circumvent the ban."In <a href="https://markets.businessinsider.com/currencies/news/bitcoin-price-btc-china-mining-crackdown-sichuan-cryptocurrencies-ether-2021-6-1030538480">bitcoin mining</a>, high-powered computers solve complex puzzles to mint new coins and secure the network. The <a href="https://www.businessinsider.com/personal-finance/hash-rate?r=US&amp;IR=T">hashrate</a> reflects the computational power used by a proof-of-work cryptocurrency network, like bitcoin, to process transactions in a blockchain. It can also reflect how fast a cryptocurrency miner's machines complete computations.The Chinese government ban resulted in an immediate decline in the global hashrate total, but this quickly reversed as miners shifted abroad, according to the report."By the end of 2021, total network hashrate had almost fully recovered to pre-ban levels," it said. "The upward trajectory continued in early 2022, and culminated in a new all-time hashrate high."The research found the US accounted for 37.84% of the hashrate. Russia has seen a substantial drop in its share, from 11.23% in August to 4.66% by January. Kazakhstan became a destination for crypto miners fleeing the Chinese ban, driving a rise in hashrate share to 18.10% in August. But strict rules introduced by its government to counter power shortages drove its share down to 13.22%.China's harsh clamp down on crypto reverberated across the industry, and provided the US with the opportunity to get ahead and become the world's biggest bitcoin miner for the first time.Read more: <a href="https://www.businessinsider.com/crypto-crash-altcoins-watch-winter-terra-ust-stablecoins-oversold-jpmorgan-2022-5" target="_blank" rel="noopener noreferrer">JPMorgan analysts say the crypto crash isn't a repeat of the 2018 winter yet. They explain why market conditions could still bring 'significant upside' despite reverting institutional demand — and share tokens benefiting from terra's collapse</a>

China is now the world's 2nd-biggest bitcoin miner after activity bounced back from the government's crackdown

<ul><li>Authorities in Venezuela recently seized more than 100 miners for allegedly operating a <keyword id="1660859" type="General" weightage="20" keywordseo="bitcoin-mining" source="Orion">Bitcoin mining</keyword> farm without the relevant permits.</li><li>In Iran, the state power company has warned that <keyword id="12463968" type="General" weightage="20" keywordseo="illegal-crypto-mining" source="Orion">illegal crypto mining</keyword> operations will cause at least 10% of the power outages this winter.</li><li>Despite regulation coming into place, illegal mining for cryptocurrencies continues to thrive in countries with cheap electricity as miners look to expand their profit margins.</li></ul>Regular mining and mining for cryptocurrencies may not be the same thing, but they do have something in common — illegal mining of both takes a toll on the environment, the economy, public order and governance. In Venezuela, which also has a history of illegal mining for gold, the government seized more than 100 miners from an underground Bitcoin mining operation this month. According to <a href="https://morocotacoin.news/venezuela/la-sunacrip-junto-a-otras-autoridades-venezolanas-incautan-equipos-de-mineria-digital-clandestina/">local media</a>, the authorities were able to track down the perpetrators because of the toll they were taking on the power grid, the National Electric System (NES). Similar incidents have come to light in Iran, <a href="https://www.businessinsider.in/cryptocurrency/news/watch-malaysian-police-use-a-steamroller-to-crush-1069-bitcoin-mining-rigs-worth-1-3-million/articleshow/84549421.cms">Malaysia</a>, the UK, and other countries around the world. Kazakhstan, which saw an influx of crypto miners after China’s ban, is also mulling over introducing regulations to <a href="https://www.businessinsider.in/cryptocurrency/news/cryptocurrency-miners-are-taking-a-toll-on-power-grids-in-russia-iran-kazakhstan-belarus-pushing-for-regulation/articleshow/87132961.cms">separate the crypto miners from other power users.</a> The Asian Dragon’s ban has also resulted in the US becoming the top destination for <a href="http://coindcx.com">Bitcoin</a> miners, according to the Cambridge Bitcoin Electricity Consumption Index (<a href="https://cbeci.org/mining_map">CBEC</a>). As of September 2021, Bitcoin miners in the US accounted for one-third of the cryptocurrency’s hashrate — the amount of computational power going into mining for Bitcoin. <div type="image" title="PubG - Crypto (10)" msid="87505276" hostid="261" caption="&amp;lt;p&amp;gt;The US accounts for one-third of the Bitcoin hashrate after China&amp;#39;s ban on crypto mining&amp;lt;/p&amp;gt;"></div> <cmsannotation type="cmsannotation" annotationid="The exploitation of cheap electricity" comment="subhead" text="The exploitation of cheap electricity">The exploitation of cheap electricity</cmsannotation> Just as illegal mining for precious metals increased as prices rose — the same can be seen in the crypto universe too. In most cases higher prices attract more miners and more miners means a higher demand with the same supply, which in turn, leads to an increase in prices as the cycle continues. Moreover, the <keyword id="6289215" type="General" weightage="20" keywordseo="crypto-mining" source="Orion">crypto mining</keyword> industry competes on low margins. And, the biggest variable in running a profitable operation is the cost of electricity. This is why countries seeing a large amount of cryptocurrency mining are the same ones that offer electricity at cheap rates. In most places, this is because the rates are subsidised to keep power affordable. Venezuela, for instance, introduced new regulation to make cryptocurrency mining legal in September this year. However, one month later, the country’s <a href="https://twitter.com/VTVcanal8/status/1283503232636145667">Minister of Habitat and Housing</a>, announced that the government is banning mining operations in any low-income neighborhoods that have subsidised electrical costs. Kazakhstan, another country with cheap electricity prices, is tracking down ‘grey’ or illegal miners to weed them out from the ‘white’ or permitted miners. While the President, <a href="https://moderndiplomacy.eu/2021/11/02/president-of-kazakhstan-gives-green-light-to-cryptocurrency-mining/">Kassym-Jomart Tokayev</a>, seems to have no qualms about cryptocurrency miners, it was earlier reported by <a href="https://eurasianet.org/kazakhstan-to-restrict-crypto-miners-amid-power-shortages">Eurasianet</a> that the country’s national grid is rationing electricity and targeting cryptocurrency mining farms in the process due to their high power consumption. <cmsannotation type="cmsannotation" annotationid="The question of demand and supply" comment="subhead" text="The question of demand and supply">The question of demand and supply</cmsannotation> In Iran, where the supply of electricity seasonally falls short of demand due to extreme temperatures during winter and summer, illegal cryptocurrency mining has only made matters worse. Just like in Venezuela, miners can get permits for crypto mining from the government in Iran. However, illegal mining operations continue to thrive — including one in the basement of the <a href="https://cointelegraph.com/news/tehran-stock-exchange-ceo-resigns-following-discovery-of-bitcoin-miners-in-basement">Tehran Stock Exchange</a>. Iran had <a href="https://www.businessinsider.in/cryptocurrency/news/iran-bans-crypto-mining-for-the-summer-ahead-of-peak-electricity-demand/articleshow/82975646.cms">banned</a> cryptocurrency mining for four months during the summer because of the toll on the power grids. After getting the green light to restart operations again in October, the state electricity company has warned that the threat from illegal cryptocurrency mining is not yet over. It expects that clandestine cryptocurrency mining will account for at least 10% of power outages this winter, according to a statement published by the official government news agency <a href="https://www.rferl.org/a/iran-power-cuts-cryptocurrency/31502220.html">IRNA</a>. <div type="image" title="PubG - Crypto (11)" msid="87505326" hostid="261" caption="&amp;lt;p&amp;gt;The production of just one bitcoin consumes as much energy as 18 Americans or more than 1,500 Nigerians per year&amp;lt;/p&amp;gt;"></div> With the US fast becoming a hub for cryptocurrency mining, the states of Texas and Washington are in high demand with the lower electricity rates in the country. While a huge chunk of their power generation is done using renewable resources, thus reducing the toll on the environment, concerns remain over supply and demand in the world’s largest economy as well. Texas, for instance, was a victim of a huge power outage crisis earlier this year. In February, more than <a href="https://www.texastribune.org/2021/02/21/texas-power-outage-grocery-stores-greg-abbott/">10 million people</a> within the state were left without any electricity amid freezing temperatures resulting in the <a href="https://www.texastribune.org/2021/03/25/texas-deaths-winter-storm">death</a> of at least 111 people. And, with more Bitcoin miners coming on board, <a href="https://www.governing.com/next/can-texas-power-grid-withstand-cryptocurrency-mining">experts</a> are vary that only only will the prices of electricity increase as a result, but winter shortages could worsen. The more people there are mining for Bitcoin, the more difficult its algorithms are going to become to solve, which means validating transactions — or mining — will lead to the consumption of even more power. It’s one of the primary reasons why Ethereum, the second largest cryptocurrency in the market, is currently moving to the proof-of-stake (PoS) consensus method rather than proof-of-work (PoW). The shift, dubbed as Ethereum 2.0, is expected to reduce mining for Ether (ETH) by 99%. SEE ALSO: <a href="https://www.businessinsider.in/investment/news/cryptopunks-sees-another-bizarre-sale-in-seven-days-this-time-for-an-unreasonably-cheap-price/articleshow/87490463.cms">Another bizarre CryptoPunks' sale in the last seven days — this time for an unreasonably cheap price</a> <a href="https://www.businessinsider.in/investment/news/amitabh-bachchan-nft-collection-hits-520000-all-time-high-for-an-nft-in-india-on-day-one/articleshow/87488171.cms">Bid for Amitabh Bachchan's NFT collection hits $520,000 — all time high for an NFT in India on day one</a> <a href="https://www.businessinsider.in/investment/news/crypto-firm-crosstower-partners-with-south-asian-engagement-forum-to-celebrate-diwali-at-world-trade-center-in-new-york/articleshow/87484056.cms">Crypto firm CrossTower will be celebrating Diwali at the World Trade Centre with fireworks over the Hudson River in New York</a>

Illegal mining for cryptocurrencies remains rampant as miners look to maximise profits with cheap electricity

Rapid changes in the financial markets and the <a href="http://www.businessinsider.com/rouble-strengthens-after-russian-central-bank-hikes-rates-2014-12">Russian economy</a>&#xa0;are forcing Vladimir Putin to change his calculus. 
Now the Russian president has a choice between doubling down on his aggressive foreign policy or concentrate on putting Russia in order.
This week's plunge in the value of the ruble adds another layer of uncertainty to the ongoing faceoff between Russia and the West.
The currency crisis, precipitated by US and EU sanctions against Moscow and a global decline in oil prices, threatens to crater the country's lucrative state-owned enterprises and send the economy into a nosedive.
The question is how an ever-unpredictable Vladimir Putin will <a href="http://www.businessinsider.com/bremmer-putin-now-needs-scapegoats-2014-12">respond</a>.
Putin's nationalistic and often-aggressive policies have appealed to Russians' post-Cold War sense of grievance and won him <a href="http://www.forbes.com/fdc/welcome_mjx.shtml">soaring approval ratings</a> at a time when the Russian president is loathed in most western capitals.
But the ruble dive threatens to radically shift the conditions that have allowed Putin to maintain his internal popularity in spite of the western powers' opposition to him.&#xa0;
As New York University professor and Russia expert Mark Galeotti explained to Business Insider, Putin's rule is predicated on a "social contract" that most Russians have found acceptable: "You stay out of <keyword id="6358883" type="PERSON" weightage="60" keywordseo="Politics">politics</keyword>. You show enthusiasm but don't think you actually get a meaningful say in government. In return for that your life will improve and continue to improve."
Under Putin, Russia achieved <a href="http://www.iie.com/publications/papers/paper.cfm?ResearchID=974">perhaps the highest standard of living in the country's history</a> while the government was able to replenish its coffers after periods of actual bankruptcy under Boris Yeltsin in the 1990s. Weaknesses remained: The new prosperity was largely distributed <a href="http://www.nybooks.com/articles/archives/2014/dec/18/how-he-and-his-cronies-stole-russia/">through Putin's hand-picked former KGB colleagues</a> and much of the country's wealth depended upon robust oil prices and access to European markets. <a href="http://www.themoscowtimes.com/business/article/russian-defense-budget-to-hit-record-81bln-in-2015/509536.html">Record military spending</a> also threatens to sap resources and hamstring any government response to a future economic crisis.
The recent decline in oil prices, along with the economic consequences of <keyword id="6356001" type="COMPANY" weightage="60" keywordseo="international">international</keyword> sanctions, could bring Putin's arrangement crashing down around him. "This social contract is being torn up," says Galeotti. "But Putin could tear it up more quickly and more assiduously if he's still determined to maintain his aggressive geopolitical stance. It really is one of those guns or butter moments."

Galeotti believes that Moscow may send additional troops to eastern Ukraine in the hopes of pressuring Kiev into a settlement that would result in the lifting of international sanctions. But the immediate of escalation - beyond the Kremlin's current spate of <a href="http://www.businessinsider.com/lithuanias-military-is-on-alert-over-russian-moves-2014-12">military mobilizations</a> and <a href="http://www.businessinsider.com/russia-flies-provocative-aerial-operations-2014-11">provocative military flights</a> near and even in European airspace - remain low.
Putin has nothing to gain from fresh geopolitical turmoil, especially now. "If we assume that Putin and company want to maximize their chances of exiting this crisis with their fortunes and, ideally, their political power mostly intact, then they need to worry about how NATO and the markets will respond to fresh aggression," Jay Ulfedler, a political scientist and director of the <a href="https://cpgearlywarning.wordpress.com/tag/jay-ulfelder/">Early Warning Project</a>, told Business Insider. "At this point, I don't see many options for new aggression that carry serious domestic benefits for Russia and don't risk huge new costs, perhaps including a direct war with NATO."
But that's only in the short term. The Russian state has enough money to backstop the ruble for the time being and Moscow has the ability to bail out some of the state's vital assets. "The country's strategic reserves may be (and I think will be) dispatched to help save some of the industries and businesses that are considered strategic (RosNeft and GazProm are first in that list), but others may be sacrificed," Hannah Thoburn, a Eurasia analyst at the Foreign Policy Initiative, told Business Insider.&#xa0;
The alternative is economic collapse and the severing of Putin's social contract - a scenario that could lead to internal disruptions serious enough to put Russia on an even more more aggressive footing.
In an economic worst-case scenario, Russia could see "an increasing tide of protest" and "an accretion of signs of concern" as popular discontent grows, Galeotti explains. In that situation, "the elite may also start to wonder if Putin is really the guy they want in charge."&#xa0;
In the face of public backlash and internal revolt, the long-serving Russian president may feel he has little choice but to rally nationalistic sentiment and push his advantage over his western rivals, which currently resides in the Kremlin's willingness to violently impose its will and violate the sovereignty of Russia's European neighbors.&#xa0;

Geopolitical expert Ian Bremmer&#xa0;<a href="http://www.businessinsider.com/bremmer-putin-now-needs-scapegoats-2014-12#ixzz3M5xh1Sel">told Business Insider</a>&#xa0;that if he feels he's backed into a corner, Putin's options include more cyberattacks, "more aggression/incursion around NATO borders, excuses found for expansion of military engagement beyond present zone in Russia, [and] closer ties/integration with China."
And then there's the worst-case scenario, an economic meltdown bad enough to convince Putin that the continuity of his rule is under threat. Galeotti says that complete Russian economic collapse is "a possibility but not a probability." But as he notes, "imperial adventurism" in the face of political or social crisis is a Kremlin tactic dating back to the <a href="https://history.state.gov/milestones/1899-1913/portsmouth-treaty">disastrous Russo-Japanese war in 1905</a>.&#xa0;
It's one that Putin could resort to if things get worse. And between eastern Moldova, eastern Ukraine, and parts of Kazakhstan, former Soviet possessions that many Russians believe to be part of the national patrimony, Putin wouldn't have a shortage of obvious targets.&#xa0;

You Searched For "kazakhstan power shortage" and got 10 results

Bitcoin miners may push Kazakhstan towards nuclear power despite its uneasy history

BI India Bureau

Cryptocurrency mining is causing power shutdowns in Kazakhstan, and China may be to blame

Marcia Sekhose

Cryptocurrency miners are taking a toll on power grids worldwide — Russia and Belarus join other countries look to separate them from other power users

Prabhjote Gill

China’s Bitcoin miners are looking at US, Kazakhstan, Canada, and Europe amid the exodus — but not every option fits the bill

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Kosovo is the latest country to ban crypto mining as it deals with a power crisis

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Putin may have wanted to restore the Russian Empire, but his power over former Soviet states is waning as his invasion of Ukraine flounders

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Why India Should Woo Global Powers For Civil Nuclear Deals

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China is now the world's 2nd-biggest bitcoin miner after activity bounced back from the government's crackdown

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Illegal mining for cryptocurrencies remains rampant as miners look to maximise profits with cheap electricity

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Putin Now Faces 'One Of Those Guns Or Butter Moments'

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