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Kazakhstan Might Have to Shut Bitcoin ($BTC) Mining Operations, Here’s Why

Government faces investigation into Bitcoin Trust’s expenditure


Kazakhstan, the Central Asian nation that became a Bitcoin mining hub in the wake of the Chinese crypto crackdown and miner exodus might have to shut BTC mining operations temporarily. The country is facing an electricity crunch that intensifies in winter and the government might have to impose restrictions on Bitcoin mining to ensure ample electricity to the people.

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Kazakhstan’s share of Bitcoin mining rose six folds in April this year as new anti-crypto policies of China forced the significant sections of large Bitcoin miners to relocate to compliant nations with abundant clean energy supply. The central American nation ranked third in terms of Bitcoin mining share after the USA and China. China had the biggest Bitcoin mining share with over 75% market dominance, but that fell sharply post April and many believe a majority of the miners have already relocated to other nations.

The Bitcoin network’s hash power nosedived by half post the Chinese exodus, and it has returned to pre-Chinese crackdown levels now, suggesting the majority of miners have already begun their mining operations again.

Kazakhstan Might Follow Iran’s Lead by Temporarily Restricting BTC Mining

The electricity crisis in states with legal Bitcoin mining operations has become a norm as Iran faced a similar crisis in the first quarter of 2021. The Iranian government has legalized BTC mining in the country as a way to help its declining economy and fight against trade sanctions. But, the government soon realized that illegal miners were exploiting limited energy resources leading to several blackouts in the state. As a result, the government announced a temporary ban on Bitcoin mining until September 22 to ensure there is ample electricity throughout the harsh summer.

Similarly, Kazakhstan might have to impose some sort of temporary BTC mining ban in the state to ensure continuous electricity supply during the harsh winters.

Disclaimer

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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