Relocating Chinese Bitcoin Miners Turn Kazakhstan Into Crypto Powerhouse

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Last Updated on 17 November 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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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.

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.

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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.