The prohibition of virtual currency mining causes a fire sale of mining equipment

As a result of the ban on mining of cryptocurrencies that consume large amounts of electricity in Kosovo, where energy shortages continue, it is reported that there are a lot of posts by Kosovo people trying to sell mining equipment on the Internet.

Panic as Kosovo pulls the plug on its energy-guzzling bitcoin miners | Cryptocurrencies | The Guardian
https://www.theguardian.com/technology/2022/jan/16/panic-as-kosovo-pulls-the-plug-on-its-energy-guzzling-bitcoin-miners

Used To Free Electricity, Kosovo's Bitcoin Miners Are Now Facing Difficult Times After Ban
https://www.rferl.org/a/kosovo-bitcoin-mining-ban-electricity/31651114.html

Kosovo, one of the poorest countries in the EU, uses lignite , a low-grade coal that can be harvested abundantly in the country, to generate 90% of its domestic energy production, and the government subsidizes fuel costs. Partly because of this, it is the region with the lowest energy prices in Europe. As a result, the number of people mining in the country has increased rapidly in recent years.

However, due to soaring fuel costs due to the shortage of natural gas in Europe and the breakdown of the country's largest thermal power plant, power outages and power shortages have occurred one after another in Kosovo. In response, the Kosovo government announced at the end of 2021 that it would ban cryptocurrency mining.

Kosovo, facing a power shortage, banned cryptocurrency mining, and pointed out that 'there is no legal basis and the method is unknown' --GIGAZINE

It is reported that the crackdown on cryptocurrency mining by the government and police has greatly affected those who were mining in the country. According to the British general newspaper The Guardian, Kosovo's cryptocurrency community on SNS such as Facebook and Telegram is filled with Kosovo's writings that want to sell mining equipment. In addition, a Kosovo man who interviewed the EU news agency Radio Free Europe / Radio Liberty on condition of anonymity said, 'Mining earns 2000 euros (about 260,000 yen), which is about five times the average monthly income of Kosovo. Sometimes, but I've stopped mining anymore. '

Kosovo's Minister of Economy, Artane Rizvanolli, said, 'The ban on mining is a matter of course. The government has provided a budget of 20 million euros (about 2.6 billion yen) for energy assistance, but it is still unsuccessful. Sufficient. This money is a tax paid by taxpayers and is intended to subsidize the power of the people. On the other hand, mining virtual currency is an activity that consumes a lot of energy, whereas There were no restrictions. '

Kosovo is not the only country that has announced a ban on cryptocurrency mining. The People's Bank of China, the central bank of China, announced in September 2021 that it would completely outlaw cryptocurrencies. In addition, the Iranian government has announced that it will regulate mining from May to September 2021 in order to secure electricity in the summer when electricity demand increases, and in Kazakhstan, which is regarded as the next mining powerhouse to succeed China. There are an increasing number of cases where mining is banned due to power shortages, such as tightening tightening of non-authorized mining companies against the backdrop of a serious power shortage.

There are also mining companies who say that the power shortage is becoming more serious and business continuity is impossible in the 'next mining powerhouse' --GIGAZINE

Cryptokapo, the maintainer of Kosovo's largest online crypto community and a crypto investor himself, told The Guardian, 'There is a panic in Kosovo's crypto community and we are mining crypto. All of them are trying to sell their equipment or move their bases to neighboring countries. There are many people in Kosovo who are investing in cryptocurrencies, and some are even investing in loans. The situation is not good. '