May 25, 2022

In Malaysia, they are looking for and closing crypto farms. What problems does mining create for the country's power grids?

In Malaysia, they are looking for and closing crypto farms. What problems does mining create for the country's power grids?

In Malaysia, due to the excessive load on the local power grid, the country's authorities began to look for crypto farms, which illegally join the capacities. The police, together with the local energy company TNB, conduct special raids during which they detain miners and destroy equipment.

Malaysian authorities talk about the problem of miningfor more than a year, arguing that this type of activity causes enormous damage to the energy sector of the country. The fact is that mining is a process that requires a large amount of electricity and causes severe power outages in Malaysia.

As a result of the raids carried out by the MalaysianBy police, over the past two years, more than 600 people have been detained who illegally connected to the power grid and engaged in cryptocurrency mining. Many of the detainees rented apartments and used the owners' electricity. Without notifying them that they are going to be mining. During this time, more than a thousand mining installations were seized and destroyed from them for a total amount of about $16 million.

Popular region

The Asian region has recently become verya popular location for miners. The issue of migration began especially actively in 2021, when, after the complete ban on cryptocurrencies in China, miners began to migrate to countries relatively close to it, including choosing Malaysia for relocation.

Overloading of electrical networks as a result of theirexcessive activity has been noted in recent years not only in Malaysia, but also in other countries of greatest interest to miners - for example, in Kazakhstan, as well as in some US states (in particular, in Texas). According to the calculations of the Texas department responsible for the electrical grid, the load on them in the next two years will increase five times.

According to the University of Cambridge, the worldbitcoin mining takes about the same amount of electricity as it takes to supply the needs of entire countries - for example, Switzerland or Kuwait. According to other estimates, mining today accounts for about 0.5% of all electricity consumed in the world - about 91 terawatt-hours of electricity per year. This is 7 times more than the entire IT infrastructure of a giant like Google requires.

In Malaysia, they are looking for and closing crypto farms. What problems does mining create for the country's power grids?

Source: nytimes.com

Author: Dmitry Noskov - expert of the StormGain crypto exchange (platform for trading, exchanging and storing cryptocurrency)

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