Following the power cut, the head of the National Energy Holding Aitmamat Nazarov stated that the cryptocurrency mining is not defined under Kyrgyzstan law, local news agency AKIpress reported on Sept. 20.
Authorities of Kyrgyzstan cut off power to 45 crypto mining firms as they consumed more energy than three local regions combined.
136 MW of electricity used
Nazarov elaborated that electricity consumption by local crypto mining firms does not fall within Kyrgyzstan’s energy distribution plan. The executive clarified that the 45 crypto miners consumed 136 megawatts of electricity, which is more than the amount consumed by three Kyrgyzstan regions, namely Issyk-Kul, Talas and Naryn.
Cheap energy pricing
As noted in the report, Kyrgyzstan has become a popular site for global cryptocurrency mining firms due to its cheap energy pricing. In late August 2019, the Ministry of Economy of Kyrgyzstan submitted a draft law in order to introduce cryptocurrency mining taxation, aiming to increase budget revenues.
Cryptocurrencies were banned in Kyrgyzstan in July 2014 after the National Bank of the Kyrgyz Republic released a warning against Bitcoin and other cryptocurrencies being used as a payment method, which is illegal under national law.
Meanwhile, Iran, which was similarly cutting off electricity to local mining farms, proposed to register crypto miners on an annual basis in a move to regulate the industry, as reported on Sept. 19.
Litecoin’s Mining Power Has Fallen 28% Since Its Halving
Many litecoin (LTC) miners working to secure the blockchain and compete for block rewards have been unplugging their machinery following the cryptocurrency’s recent “halving” event, network data shows.
Litecoin’s mining difficulty – a coded-in measure of how hard it is to solve the mathematical puzzles used to write blocks on the network – has dropped from 15.93 million on Aug. 4, one day before the halving, to 11.40 million on Aug. 22, based on data from mining pool BTC.com. The hashing power on the network has also fallen by 28 percent.
Litecoin’s mining difficulty is designed to automatically adjust every 2,016 blocks, approximately every 4 days, to ensure the block-producing interval remains about 2.5 minutes based on the average hashing power in the current cycle.
The 28 percent difficulty drop means the current level is the lowest since April 29. BTC.com’s data estimates that difficulty will continue to decline by another four percent at the next adjustment date, which is due in three days.
The 4-day average hashing power on the litecoin network has also declined from 456 terahash per second (TH/s) recorded on Aug. 4 to 326 TH/s on Aug. 22 at 23:54 UTC, when the latest difficulty adjustment occurred – a 28 percent drop.