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Kazakhstan is one of the leading nations that asylmed several digital currency miners amid the Chinese ban on the sector. During the summer last year, we noticed that the nation was being considered as the paradise for migrating digital currency miners. However, the line of thought seems drowning now towards a new narrative. Miners who called the nation their home due to the crypto-friendly environment and clear regulations, things have turned sour for them.
Kazakhstan is facing concerns with high electricity usage
We have noticed how amid the Chinese crackdown last year the hashrate stood at almost 10% in Kazakhstan. Meanwhile, as many of the miners began to migrate from China, the figure doubled and the global hashrate surged sending the nation to the top of the chart.
However, although the spotlight was shown on the nation, it was lurching under pressure. As many miners were migrating and the country could make millions of dollars through taxation, some issues began to be highlighted.
The total electricity supply suffered and blackouts became frequent. Moreover, the rising temperatures led to an increasing demand for air conditioning.
How is Kazakhstan’s government reacting?
The government of Kazakhstan was reacting swiftly. The nation limited the mining capacity for new mining centers to 100 megawatts and categorized the miners as being either white or gray.
Crypto mining firms that were already compliant with the rules were white while those operating without licensing were gray.
According to exports in the industry, such distinctions would not help the nation with the energy challenge. On 24th January all miners were cut off from the electricity supply for the rest of the month.
Bitcoin hashrate faced no effect
Although Kazakhstan began to face electricity shortage, it is noted that the Bitcoin hash rates were completely unaffected by the happenings. Barely a month later it was observed that the total Bitcoin hash rates climbed to 248.11 million terahashes per second. Notably, the total metric is more than 50% from the levels in which China was dominating the global hashrate.
What should miners in the nation expect?
Cryptocurrency miners in Kazakhstan have only two clear paths. Either they can wait with the hopes that the regulations and infrastructure will improve. Or they should migrate to more greener pastures.
