Will Kazakhstan Completely Shut Bitcoin Mining Operations?

Will Kazakhstan Completely Shut Bitcoin Mining Operations?

2021-09-24 | Robin Williams

Will Kazakhstan Completely Shut Bitcoin Mining Operations?

Kazakhstan, the Central Asian country that became a Bitcoin mining hotspot in the aftermath of China's crypto crackdown and miner exodus, may have to temporarily halt BTC mining activities. The country is experiencing an electrical shortage, which worsens in the winter, and the government may have to implement restrictions on Bitcoin mining to ensure that the people have enough electricity. Will Kazakhstan Completely Shut Bitcoin Mining Operations? Kazakhstan's share in Bitcoin mining increased sixfold in April of this year, as China's new anti-crypto measures prompted large Bitcoin miners to relocate to countries with abundant clean energy supplies. After the United States and China, the Central American country ranks third in terms of Bitcoin mining share. China used to have the largest Bitcoin mining market share, with over 75% market share, but that dropped drastically after April, and many believe the majority of miners have already gone to other countries. After the Chinese departure, the Bitcoin network's hash power plummeted by half, and it has already recovered to pre-Chinese crackdown levels, implying that the bulk of miners have already resumed mining activities. Electricity outages in places with authorized Bitcoin mining operations have grown commonplace, with Iran experiencing one in the first quarter of 2021. The Iranian government has made BTC mining legal in the country in order to improve the country's ailing economy and combat trade restrictions. However, the government quickly learned that illicit miners were squandering the state's meager energy supplies, resulting in multiple blackouts. As a result, the government has imposed a temporary restriction on Bitcoin mining until September 22 in order to ensure that enough electricity is available throughout the hot summer months. Similarly, Kazakhstan may need to implement a temporary restriction on BTC mining to maintain an uninterrupted electricity supply during the hard winters.

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