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Kazakhstan: Bitcoin mining operations may have to be shut down

Kazakhstan, the Central Asian country became a Bitcoin mining hotspot in the aftermath of China’s crypto crackdown and miner exodus. However, they may have to halt BTC mining activities temporarily. The country is experiencing a power shortage. Therefore it worsens in the winter. Additionally, the government may have to put limitations on Bitcoin mining to guarantee that the people have enough electricity.

Kazakhstan’s share in Bitcoin mining increased sixfold in April of this year. China’s new anti-crypto regulations drove major Bitcoin miners to migrate to countries with ample renewable energy supplies. After the United States and China, the Central American government placed third in Bitcoin mining share. China used to have the largest Bitcoin mining market share, with over 75% market share. However, that dropped significantly after April, and many believe the bulk of miners have already migrated to other countries.

The Bitcoin network’s hash power plummeted by half during the Chinese evacuation, but it has now recovered to pre-Chinese crackdown levels, indicating that the bulk of miners have resumed their activities.

Kazakhstan Might Follow Iran’s Footsteps

Electricity outages in jurisdictions with authorised 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 nation to aid the country’s ailing economy and combat trade restrictions. However, the authorities quickly recognised that illicit miners were squandering the state’s scarce energy supplies, resulting in many blackouts. As a result, the government has imposed a temporary restriction on Bitcoin mining until September 22 to guarantee enough power throughout the hot summer months.

Similarly, Kazakhstan may need to temporarily restrict BTC mining to maintain an uninterrupted energy supply during the severe winters.

Read More: Crypto Miners in Kazakhstan to Pay Higher Rates for The Electricity They Use to Mint Digital Coding

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