Crypto mining is a task that requires a lot of electricity. Some countries have banned crypto mining because of excess electricity usage and this is why most miners are moving to green energy and green energy sources are solar, wind, hydropower, and geothermal energy etc. As per the University of Cambridge study, 76% of crypto mining happens through green energy and if this is true then its a good percentage. However, there is still a gap of 24% that should be bridged and entire crypto mining should work through green energy.
Now Venezuelan government has banned crypto mining because of the hefty electricity demand. As per the Venezuela govt, crypto mining is energy-intensive and because of this, they see a spike in the electricity demand. Its difficult for them to manage the electricity demand and to manage this they have banned crypto mining in countries. Earlier China has done the same and now Venezuela is also on the list of countries banning crypto mining. Kazakhstan is another country that has put tough regulations on crypto mining.
This rule will make things difficult for crypto miners in Venezuela as it might not be easy for them to shift to green energy. Its an impact on their business as just after this ban implementation miners will not be able to work on mining anymore. Mining is still a profitable business through traditional methods and this is why minors are trying to enhance their resources however this switch from traditional energy can cause them extra expenses.
After following this new rule in the country more than 2000 cryptocurrency mining devices seized. It seems that the government is more concerned about electricity use and they do not want to impact their overall electric distribution and supply through Crypto mining. Although Venezuela is one of the countries where the crypto adoption is quite high but probably after this things might not remain the same as minus will be out of business in the country if they do not make a switch to green energy however this process might take some time for them to get established.
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