Laos Reallocates Power from Cryptocurrency Mining to Emerging Industries
Our editorial content is rigorously assessed by leading industry experts and seasoned editors to ensure the highest quality and reliability. Ad Disclosure
Laos Redirects Energy from Cryptocurrency to AI and Electric Vehicles
According to a report from Reuters, Laos, a Southeast Asian nation, is set to reallocate its energy resources towards industries that promise substantial economic growth, moving away from Bitcoin and other cryptocurrency mining operations by the end of the first quarter of 2026. The shift is aimed at boosting sectors that hold more significant potential for job creation and supply chain development within the country.
Advertisement Banner
Understanding the Transition from Crypto Mining to Economic Growth
Cryptocurrency mining, particularly Bitcoin, relies heavily on the proof-of-work (PoW) consensus mechanism. This process involves miners using computational power, known as “Hashrate,” to solve complex mathematical puzzles. The first miner to solve the puzzle earns the privilege of adding a new block to the blockchain and receiving the corresponding rewards.
Before the crypto mining ban in May 2021, China was a major hub for Bitcoin mining, dominating the global Hashrate. The prohibition led to a drastic reduction in the network’s Hashrate, prompting energy-abundant countries to attract these operations to their electrical grids. Laos capitalized on this opportunity, becoming a significant player in the crypto mining sector due to its surplus of hydroelectric power.
Laos’ Strategic Energy Shift
Despite its ample energy resources, Laos has decided to prioritize sectors that can drive economic progress more effectively than crypto mining. The government aims to funnel its energy reserves towards industries such as artificial intelligence data centers, metal refining, and electric vehicle production. Initially, a complete cessation of electricity supply to crypto mining was planned for this year, but heavy rainfall led to a temporary continuation of the supply. The country now targets a complete transition by the end of Q1 2026.
The reduction in crypto mining is not abrupt. Since 2021, Laos has been gradually scaling back its involvement. At their peak in 2021 and 2022, Bitcoin and related mining operations consumed around 500 megawatts (MW) of power. However, this consumption has now decreased by 70%, down to just 150 MW.
Global Bitcoin Mining Trends
On a global scale, the Bitcoin Hashrate has recently experienced a decline. Data from Blockchain.com illustrates that the 7-day average Hashrate reached a new all-time high in late September. However, it has since seen a substantial drop, indicating a contraction in mining operations worldwide.
Current Bitcoin Market Scenario
Bitcoin has faced a 3% decline over the last 24 hours, bringing its price down to approximately $107,900. The cryptocurrency’s value has been on a downward trajectory since reaching its all-time high (ATH).
Our editorial process at Bitcoinist focuses on delivering content that is thoroughly researched, accurate, and unbiased. We adhere to stringent sourcing standards, and each article undergoes meticulous review by our top technology experts and seasoned editors. This rigorous process ensures the content’s integrity, relevance, and value for our readers.
“`
