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Pakistan Turns to Bitcoin Mining to Solve $7.4 Billion Energy Crisis

  • Pakistan is considering using Bitcoin mining powered by unused electricity to address its $7.4 billion annual energy losses.
  • The country plans to redirect 2,000 MW of idle electricity to Bitcoin mining and AI data centers, aiming to turn financial losses into potential gains.
  • Pakistan's unused electricity capacity, amounting to 14% of its total capacity, results in massive annual energy losses, burdening the national budget.
  • The rapid growth of solar energy in Pakistan has brought challenges like grid instability and uneven cost distribution, impacting non-solar users and poorer households.
  • The proposal to use idle power for Bitcoin mining is seen as a way to absorb excess electricity during off-peak times, ease grid pressure, and generate digital revenue.
  • Concerns have been raised about potential pollution from running old power plants for Bitcoin mining and whether the benefits will truly trickle down to citizens.
  • If successful, Pakistan's use of Bitcoin mining to address its energy crisis could set a precedent for other countries facing similar challenges.

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