Kazakhstan Becomes The Third Biggest Crypto Mining Destination After US And China
- Amist the current bearish market, Kazakhstan has emerge as the third biggest crypto mining hub after the United States and China and has eaten up the shares of Malaysia, Germany, and Iran.
- Kazakhstan currently contributes to over 13.22% of the total Bitcoin hash rate while the United States contributes to over 37.84% and China has a 21.11% share in the mining sector.
- Recently, the Asian country rates started to face a severe power crises due to which it has decided to impose higher taxes on cryptocurrency miners.
Kazakhstan, the world’s biggest landlocked country, has become the third biggest crypto mining hub after the United States and China, and its contribution to Bitcoin mining continues to increase gradually, although the bearishness of the market prevails over the trading volumes. It is also crucial to note that the Central Asian country has taken away the dominance from major players in the industry, including Malaysia, Germany, and Iran.
Interestingly, for quite some time, the landlocked nation has continued to maintain its position as the third biggest contributor to Bitcoin mining hashrate after it surpassed Russia in February 2021. According to the publicly available data, Kazakhstan currently contributes to over 13.22% of the total Bitcoin hash rate which means that the country is sitting right after the leaders in the industry, the United States which contributes to over 37.84% and China which has a 21.11% share in the mining sector.
Cambridge Centre for Alternative Finance data has noted that Kazakhstan’s absolute hash rate contribution (monthly average) come to be around 24.8 exahashes per second or Eh/s. Moreover, the US and China contributed 71 Eh/s and 39.6 Eh/s, respectively, the estimation further added. This basically means that these countries have become the go-to destination for crypto miners.
“Most coal is used for electricity and heat generation, while most oil is used by final consumers, particularly in road transport,”
the study confirmed.
The surge in the popularity of Bitcoin mining firms and hashrate in the Asian country can be attributed to the low electricity charges in Kazakhstan coupled with the fact that the country has crypto-friendly laws as well. It was the crackdown implemented by the Chinese government on crypto mining firms that a large number of such firms migrated to the Central Asian nation and set up their business these.
The mining ban implemented in China caused the Bitcoin hashate to collapse by significant numbers but eventually, the numbers went back up when the mining power was distributed between the US and other countries that stepped up to the task.
Kazakhstan has become the destination for many crypto firms as well as recently, the world’s biggest crypto exchange Binance signed a memorandum of understanding (MoU) with the Republic of Kazakhstan’s Financial Monitoring Agency, under its recent “Global Law Enforcement Training Program” according to which the exchange will assist law enforcement agencies around the world in preventing financial crimes in the digital asset world and the Central Asian country as well.
Meanwhile, the Asian country which was earlier known for low crypto taxes and electricity rates started to face a severe power crises due to which it has decided to impose higher taxes on cryptocurrency miners in the nation following the rise in electricity theft cases and huge consumption by miners.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
