Relocating Chinese Bitcoin Miners Turn Kazakhstan Into Crypto Powerhouse

---

Kazakhstan was in the world news twice in the past week. Firstly because it was the country against which world champion France held a shooting match as it battled them 8-0 to qualify for next year’s world cup.

Secondly, because the country has climbed up the crypto charts and has now become the world’s second-biggest Bitcoin mining location. Reason for this newfound wealth and a booming industry is the cheap power the country can provide and the many crypto miners relocating from China.

Bitcoin craze robs Kazakhstan of electricity https://t.co/Tb3bI6Z1wT

— Gyorgy Veszpremi (@GVeszpremi) November 17, 2021

The power grab is so major that data from the Cambridge Center for Alternative Finance shows that Kazakhstan contributed more than 18% of the average monthly share of the network’s hash rate in the past few months, compared to 35% for the United States.

Bitcoin’s Environment Impact: Chinese Miners Suck Dry Kazakhstan’s Power Grid $BTC https://t.co/DlynXCOXTK

— The Coin Detective (@acoindetective) November 16, 2021

New industry

Kazakhstan’s President Tokayev signed a law in June 2021 already that imposed an additional tax, which could amount to $ 0.00233 per kilowatt hour, on any electricity used by miners. The text should enter into force from January 2022, just as Bitcoin might pass another record price.

Kazakhstan must now juggle the financial benefits of the influx of miners into the country, on the one hand, and the significant impact of miners’ activities on the power grid, on the other. The small Asian nation is building a healthy and inviting environment for cryptocurrencies. It could in fact authorize banks to offer services linked to them, developing a whole new industry as it does.