Electricity deficit forces crypto miners to leave Kazakhstan-mining Bitcoin messages
Electricity deficit forces crypto miners to leave Kazakhstan-mining Bitcoin messages
electricity shortage has hit Kazakhstan's booming crypto mining industry this year. A media report shows that some miners, including some of those who have moved in in China's hard passage against the sector, are now trying to relocate goals with a more stable energy supply like the United States.
miner close crypto farms due to problems in Kazakhstan with electricity generation
Kazakhstan has developed into a crypto mining hotspot since China introduced a government insulting against Bitcoin-Miner in May. The Central Asian nation maintains limited electricity tariffs and is an important producer of fossil fuels. However, the neglected infrastructure and inadequate generation capacities can cover the rapidly increasing electricity requirement for the energy -hungry do not cover coin coin suggestions.
authorities have the first three quarters of the year by 7 %-on the growing mining data center , and the legislator has suggested Introduction of higher electricity tariffs for miners. Representatives of the industry have complained about an unfair treatment. "You made the mining a scapegoat," said Didar Bekbauov, founder of the local mining hosting company Xive, on social media at the beginning of December.
The manager published his comment on Twitter after Xive was forced to close his main facility in Southern Kasachstan when the power supply was suddenly interrupted last month, Nikkei Asia found in a report. The company still operates another mining in the country, but at the same time checks opportunities to move some companies to the USA
In November, the Data Center Industry and Blockchain Association of Kazakhstan achieved an agreement with the country's network operator, Kegoc to ensure that the registered miners are supplied -free. When the state energy supplier did not meet his part of the agreement, mining companies began to close their facilities in the country. Another large crypto farm operator, the Bitfufu supported by Bitmain, has closed its crypto farms in Kazakhstan and also moves to the USA.
While the restrictions imposed on the electricity distribution company have had a impact on regulated crypto mining companies, small crypto farms in the shadow economy have continued to shape digital currencies in cellars and garages. The "gray miners" burn large quantities of electrical energy and present the government in a further challenge in only sultan. "Unfortunately it is very difficult to get rid of them," Alan Dorjiyev, President of the Association of the Crypto Industry, told Nikkei.
Kazakhstan initially welcomed cryptocurrency miner and took steps to regulate the industry through right-hand regulations. Estimates published in October indicated that the country could expect crypto mining around $ 1.5 billion and tax revenue of over $ 300 million over the next five years. In January 2022, a new tax of $ 0.0023 per kilowatt hour of electricity, which is used by registered crypto mining companies, will be charged. Kazakhstan also plans to build power plants with a combined 3,000 megawatt generation capacity in the coming years, to expand the proportion of renewable energies in its energy mix and consider nuclear energy.
Do you think that Kazakhstan will be able to solve its power supply problems and provide sufficient electricity for its crypto mining industry? Tell us in the comment area below.
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