Topic: No Electric Supply to Bitcoin Mining Operations in Laos (Read 400 times)
If these countries had got big mining operations, price might've varied big. Whenever something similar (like ban of mining) happens, the mining operation in those countries used to get shifted to the nearby country. This time such move haven't taken place.
China crack down on Bitcoin mining caused a Great Hashrate Migration to other nations like USA, Iran, Kazhakstan, ... and the network as well as Bitcoin price are all fine years after that migration which is bigger than any migration of Bitcoin miners from Laos.Surely what is happening in Laos won't have big impacts.
Hashrate recovers after Great Migration
Quote
As hashrate comes back online, Mining Difficulty has recommenced a series of upwards adjustments, having risen 27.9% since the Great Miner Migration peak in May 2021.
When there is no sufficient amount of electricity for the common people, and the government stopping the supply for mining operations is right decision. As Laos is a small nation and the contribution through its mining to the network is really small. For this reason bitcoin market isn't affected.
If these countries had got big mining operations, price might've varied big. Whenever something similar (like ban of mining) happens, the mining operation in those countries used to get shifted to the nearby country. This time such move haven't taken place.
If these countries had got big mining operations, price might've varied big. Whenever something similar (like ban of mining) happens, the mining operation in those countries used to get shifted to the nearby country. This time such move haven't taken place.
EDL has declared a halt in providing power to cryptocurrency mining ventures in Laos. The majority of the country's electricity, sourced from hydropower plants, will no longer be supplied to these operations. In September 2021, the Laotian government granted permission to six companies for cryptocurrency trading and mining.
The Governor of EGAT said that if the drought in Laos becomes severe, hydropower plants in Laos will generate less electricity, reducing export capacity.
https://en.vietnamplus.vn/laos-stops-power-supply-to-cryptocurrency-mining-businesses/266967.vnp
What do you guys think about this?
The Governor of EGAT said that if the drought in Laos becomes severe, hydropower plants in Laos will generate less electricity, reducing export capacity.
https://en.vietnamplus.vn/laos-stops-power-supply-to-cryptocurrency-mining-businesses/266967.vnp
What do you guys think about this?
- At that point, they can't do anything because that is the jurisdiction and authority of the government in Laos. And I think the government has the right to do that. Anyone who is no longer able to pay correctly for electricity will have their supply cut off unless they pay on time.
Then we know that when it comes to Bitcoin mining farms, you can really expect that the number one high cost is electricity. And you should always be ready to maintain the payment there every month. But if that's not the reason and there is just a lack of sources to produce energy, there are other ways, like solar energy or solar panels.
Hydropower is considered renewable and thus eco-friendly. It's great that Laos relies on a good source of energy, and it's also nice that miners are trying to use it rather than burn coal, so it's sad to hear that they will no longer be allowed to use it. The reasoning for halting electricity supply makes perfect sense, though, as hydropower relies on water, which makes droughts a big problem. There's also a claim on unpaid debts by mining companies, and if that's the main reason to choose to cut them off, it makes sense to me even without the drought.
But if it's a small thing, are there any other businesses that are being cut off? Surely there are other similarly non-essential enterprises, and they all should be treated equally if they consume similarly high amounts of energy?
But if it's a small thing, are there any other businesses that are being cut off? Surely there are other similarly non-essential enterprises, and they all should be treated equally if they consume similarly high amounts of energy?
If there's a severe drought in Laos and the country can't import electricity at affordable prices, then reducing the electricity supply to crypto miners is justified. I don't believe that the authorities in Laos are using the drought as an excuse to shut down the electricity supply to the crypto miners. If the situation continues I don't think that there will be problem for the crypto miners to just move to another country.
I don't have any data about the capacity of crypto mining facilities in Laos, but I can assume that the mining power is insignificant.
Laos belong to Mekong delta nations with China and in China mainland, we know they usually have big changes in rain, flood seasons. I agree with your opinion on likely impacts of drought on power supply especially hydroelectric supply in those nations. Laos is at nearly the end of Mekong delta so it has more impacts from drought than China.I don't have any data about the capacity of crypto mining facilities in Laos, but I can assume that the mining power is insignificant.
Bitcoin and cryptocurrency mining is not what governments care most for their national economy and related industries that need electricity supply. When their nations' electricity supply has problems, they have reasons to temporarily cut supply to Bitcoin and cryptocurrency mining farms.
Bitcoin mining difficulty posts biggest drop since ASIC era
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The difficulty drop is a result of the decline of the average total computing power racing on the network in the last two weeks as many Chinese miner operators have unplugged their machines to migrate to fossil fuel power stations from hydropower plants.
Also, the capital needed, you need to sink a ton of money on top of the mining gear and other costs, with cheap grid energy you can throw more money at gear, be fast to ROI and think from then, with solar, you might even buy those panels for nothing, you might end up not mining at all as the returns are minimal and you will have nothing to do with the produced electricity, so you're going to take another hit selling used solar panels.
What is the way out of this sad situation? Well, it can't be all that sad. There are alternative sources besides the use of solar panels. You can take them into account. Of course, I am not very familiar with this state, but there are no hopeless situations.Yes, the main production of electricity is hydropower. One of the most productive in the country, but which does not meet current needs. This country should consider all options. In fact, I didn’t even think that everything was so bad in this process. This is the engine of economic indicators, and here it is.
EDL has declared a halt in providing power to cryptocurrency mining ventures in Laos. The majority of the country's electricity, sourced from hydropower plants, will no longer be supplied to these operations. In September 2021, the Laotian government granted permission to six companies for cryptocurrency trading and mining.
The Governor of EGAT said that if the drought in Laos becomes severe, hydropower plants in Laos will generate less electricity, reducing export capacity.
https://en.vietnamplus.vn/laos-stops-power-supply-to-cryptocurrency-mining-businesses/266967.vnp
What do you guys think about this?
The Governor of EGAT said that if the drought in Laos becomes severe, hydropower plants in Laos will generate less electricity, reducing export capacity.
https://en.vietnamplus.vn/laos-stops-power-supply-to-cryptocurrency-mining-businesses/266967.vnp
What do you guys think about this?
If there's a severe drought in Laos and the country can't import electricity at affordable prices, then reducing the electricity supply to crypto miners is justified. I don't believe that the authorities in Laos are using the drought as an excuse to shut down the electricity supply to the crypto miners. If the situation continues I don't think that there will be problem for the crypto miners to just move to another country.
I don't have any data about the capacity of crypto mining facilities in Laos, but I can assume that the mining power is insignificant.
Here is the energy tab from the CIA factbook (amazing resource)
https://www.cia.gov/the-world-factbook/countries/laos/#energy
It seems they have coal but have zero production of petroleum and natural gas, but some google-fu points they just don't have any. They have pipelines to import NG but is seems the burn their own coal (I get it)
https://www.iea.org/countries/laos
They don't have any wind or solar power to speak of but those could augment the grid and lower the demand on hydro preserving more of the capacity. But never expect a commie country to do smart things. Mining bitcoin with scarce resources is not a wise idea.
https://www.cia.gov/the-world-factbook/countries/laos/#energy
It seems they have coal but have zero production of petroleum and natural gas, but some google-fu points they just don't have any. They have pipelines to import NG but is seems the burn their own coal (I get it)
https://www.iea.org/countries/laos
They don't have any wind or solar power to speak of but those could augment the grid and lower the demand on hydro preserving more of the capacity. But never expect a commie country to do smart things. Mining bitcoin with scarce resources is not a wise idea.
The Governor of EGAT said that if the drought in Laos becomes severe, hydropower plants in Laos will generate less electricity, reducing export capacity.
https://en.vietnamplus.vn/laos-stops-power-supply-to-cryptocurrency-mining-businesses/266967.vnp
Laos is a very small country and lack of natural resources, they don't have coal, natural gas, or oil, they rely on hydropower plant as their main source for electricity which is very not effective when the dry season come and adding the current heatwave situation they are really in bad condition. I bet it's even difficult for Laos to keep the supply for a less power demanding business, let a lone crypto-mining which required much power. I think if anyone want to create a crypto mining business, the should consider choosing a country that has more natural resources that can be converted into electrcity.
The drought has already lasted for six months and export capacity is already decreasing. The statement from Electricite du Laos (EDL) is that it will no longer supply power to these mining facilities. Two things might make them change their mind which is if they experience an improvement in rainfall or if the miners prove their importance to the Laos economy by paying electric bills when due.
Is it always like this, or this is the first time they have experienced a drought in the dry season? If I'm not wrong, most countries in SEA have the same seasonal changes, so the earliest rain should be expected to come in around October. If they had this in mind, I believe they should have planned it earlier and told miners to use other sources of electricity as soon as the dry season hits.
Miners pay more than neighbor countries, and less electricity is wasted in transmission lines. This is clearly rejecting wealth in exchange of some political favor.
How would that even work in practice?
If miners would pay more than the other countries then what stops miners from going to Thailand now and paying there more than in Laos as Thailand will still get electricity cheaper than what miners pay in Laos?
Second, there si real data with clear numbers and this is for 2021 before electricity hit sky-high prices, so 2021 Laos exported:
24,399 GWh and received $1.96B, which goes to a relative price of 8.2 cents/kwh. Do you honestly think miners would pay more than that?
And those are 2021 numbers, not 2022 when everything went everywhere at least 20%-30% more expensive!
Wealth...common!
Miners pay more than neighbor countries, and less electricity is wasted in transmission lines. This is clearly rejecting wealth in exchange of some political favor.
EDL has declared a halt in providing power to cryptocurrency mining ventures in Laos. The majority of the country's electricity, sourced from hydropower plants, will no longer be supplied to these operations. In September 2021, the Laotian government granted permission to six companies for cryptocurrency trading and mining.
The Governor of EGAT said that if the drought in Laos becomes severe, hydropower plants in Laos will generate less electricity, reducing export capacity.
https://en.vietnamplus.vn/laos-stops-power-supply-to-cryptocurrency-mining-businesses/266967.vnp
What do you guys think about this?
If the government of Laos don't want to provide electricity to these companies, then they have to look for other means to provide electricity to facilitate there Bitcoin mining activities. This is as a result of natural disaster which have inflicted serious decline in the production of electricity through hydro electric means. The government would have made proper preparation since they get there tax from this means so prevent a big loses to these companies since they will no longer be able to mine Bitcoin and do other activities that would have keep contributing to the use of Bitcoin. The Governor of EGAT said that if the drought in Laos becomes severe, hydropower plants in Laos will generate less electricity, reducing export capacity.
https://en.vietnamplus.vn/laos-stops-power-supply-to-cryptocurrency-mining-businesses/266967.vnp
What do you guys think about this?
If this is indeed the case, then it wouldn't be fair to blame the government. Electricity is undeniably very important and if they're unable to allocate additional electricity for mining then it is how it is.
There are priorities to consider, and bitcoin mining might not be at the top of the list. Generating electricity is far from cost free; it depends on a nation's resources and various other factors. However, I believe that if you were to establish your personal power plant relying on renewable energies, solo mining might become viable. Yet, it's worth noting that this would necessitate a huge investment, as far as I know.
There are priorities to consider, and bitcoin mining might not be at the top of the list. Generating electricity is far from cost free; it depends on a nation's resources and various other factors. However, I believe that if you were to establish your personal power plant relying on renewable energies, solo mining might become viable. Yet, it's worth noting that this would necessitate a huge investment, as far as I know.
I think this makes sense, since one of the foundations of the economy in Laos is based on the strategy of generating electricity from rivers and selling the energy to its neighbors. This means that hydropower is an important source for the national economy and since cryptocurrency mining projects in the country harness a large amount of the electrical energy that is obtained From hydroelectric power stations, it is therefore logical for the government to stop providing electrical power to these projects in the season of water scarcity.
The fault is mainly the fault of the mining companies that do not provide suitable alternatives for electric power in the season of water scarcity or in any other cases in which the electric power suddenly stops.
The fault is mainly the fault of the mining companies that do not provide suitable alternatives for electric power in the season of water scarcity or in any other cases in which the electric power suddenly stops.
Denial of Service, for whatever reason, is why any serious participant in the Bitcoin Network should operate in nomad-friendly manner, independent of centralized systems and according to Bitcoin ideals. Being nomad friendly means you are light/mobile as possible, ready to move to another location when necessary, to survive in dangerous/uncertain world with many adversaries who could try to harm or capture you & make you their slave.
Having large hard-to-move cryptocurrency hardware concentrated on a single spot, and worst still, depending on centralized system isn't a good idea. Small mining business should be hard to spot. The large ones could be securely outsourced to multiple people in different locations.
Having large hard-to-move cryptocurrency hardware concentrated on a single spot, and worst still, depending on centralized system isn't a good idea. Small mining business should be hard to spot. The large ones could be securely outsourced to multiple people in different locations.
Laos is a small nation that is located in the South Eastern part of Asia. The percentage bitcoin mining compared to the rest of the world is very minimal. Country that is much dependent on hydropower and unable to meet the necessity due to the shortage of water resources and limiting the supply to bitcoin mining operations is not a big issue and this doesn't affect the market.
Yeah but there is also other thing like they are not paying the bills on time. So I am pretty sure they why the government has taken the steps to do this. Miners should have been very careful about this while they were avoiding their bills to pay. There are so many countries that are already banning the mining operations and not allowing even on the individual levels. Unfortunately we are hearing the news where miners themselves trying to kill their own approvals with their own deeds.
Either they should rely on the green energies or may be they should build alongside business of solar farming to have it. Either way it’s gonna cost them same.
It is high time for mining companies to consider self-sufficiency in electricity supply. Why has this issue not been resolved yet? There is also an option to at least partially satisfy the demand for this resource through solar panels. Every year this technology becomes less expensive and even a small enterprise is able to afford it. Why hasn't it been done yet? For me it remains a mystery. Provided that this problem is so acute and well known about it.
There is no mystery and everyone knows it!
Without a grid and a plan for the government where you feed excess energy and get back electricity at night with whose credits it's impossible to mine efficiency with just solar. Batteries are expensive, you will destroy them with 1 full cycle per night, you need way more than your 24 consumption because you might have two consecutive days without sun.
Trying to shut down every day once the sun if out is again a pain in the ass, you're going to extend the time your ROI to twice or thrice that, meaning you're gear will be older and older, less efficient compared to the others so they might even break before that.
Also, the capital needed, you need to sink a ton of money on top of the mining gear and other costs, with cheap grid energy you can throw more money at gear, be fast to ROI and think from then, with solar, you might even buy those panels for nothing, you might end up not mining at all as the returns are minimal and you will have nothing to do with the produced electricity, so you're going to take another hit selling used solar panels.
"Lao authorities said that cryptocurrency mining operations have failed to repay mounting debts."
besides the problem of insufficient electricity, they also have unpaid debts until now, maybe this is an excuse for the government to cut off the electricity supply to their business. because a good and profitable company certainly has an electricity generator which they can use to support their business, even though turning it on is expensive but it shouldn't paralyze their business, unless this mining company has complex problems and is on the verge of bankruptcy.
It is high time for mining companies to consider self-sufficiency in electricity supply. Why has this issue not been resolved yet? There is also an option to at least partially satisfy the demand for this resource through solar panels. Every year this technology becomes less expensive and even a small enterprise is able to afford it. Why hasn't it been done yet? For me it remains a mystery. Provided that this problem is so acute and well known about it.besides the problem of insufficient electricity, they also have unpaid debts until now, maybe this is an excuse for the government to cut off the electricity supply to their business. because a good and profitable company certainly has an electricity generator which they can use to support their business, even though turning it on is expensive but it shouldn't paralyze their business, unless this mining company has complex problems and is on the verge of bankruptcy.
Will this resource come out cheaper and will it be beneficial for the company? This can only be obtained from employees. Nevertheless, this method or other sources of alternative energy should be taken into account.
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