The trouble with crypto mining operations in Kazakhstan - Crypto World - CryptoTalk.Org Jump to content
kyoukage01

The trouble with crypto mining operations in Kazakhstan

Recommended Posts

After China's recent ban all crypto mining operations within its jurisdiction, virtually all miners have moved out of the country. During the aftermath, some operators have moved in to neighboring Kazakhstan - perhaps because it is closer to China, or maybe because it offers cheap electricity.

 

For a while, this seemed like a good move... until problems began to surface. First, while electricity maybe cheap, it is not stable enough. There are reports of power outages in the country for varying reasons; the most likely is that the country is not fully prepared enough to handle the massive energy demands of crypto miners. To complicate matters, another reason has surfaced: the recent anti-government protests in the country (which we should not discuss further here).

 

Crypto mining in Kazakhstan is no joke. For Bitcoin alone, the country has at one point provided around 18% of the global hashrate as reported here.

 

So while some miners in Kazakhstan might contemplate on moving elsewhere, they may not be able to handle the logistics involved in moving their hardware out. And while they might be able to do so, they already got beaten by other miners who got first dibs on other more "safer" havens like the US. Or at least for the moment. Ultimately it will depend on the US states' willingness to accommodate the new crypto miners coming in, if it has its eyes set on unseating China as the undisputed biggest mining hub.

Details on the US projected to become the next major mining center, and more, are in the link below.

Spoiler

Kazakhstan bitcoin miner: US will make up 60% of the world’s computing power in 2 years

 

The vulnerability of Kazakhstan’s bitcoin mining industry was put on full display last week, when the country's internet shut down in the midst of anti-government protests, sparked by rising energy prices.

 

The world's second largest miner saw its hash rate or computing power that secures bitcoin, fall by double digits, in a dramatic pullback from the 18.1% it's estimated to contribute, according to Cambridge Center for Alternative Finance. 

 

The disruption marked a big setback for a market that has looked to capitalize on a mining ban in neighboring China. Its hash rate has increased more than 10% since China's ban last June.

 

“A lot of the older Chinese mining operations shifted to Kazakhstan,”John Warren, CEO of GEM Mining, a U.S.-based company reiterated. Before launching GEM’s mining operation in the U.S., Warren told Yahoo Finance he was approached about setting up operations in Kazakhstan with promoters touting its “cheap power” supply.

 

While cheap, the country's electrical grid hasn't been stable. In October, the Kazakhstan Electricity Grid Operating Company (KEGOC), which operates the national power grid, faced an energy supply crunch, citing both "a higher number of emergencies at power plants" as well as the "sharp increase in consumption of digital miners."

 

The limited power supply is likely to prompt another mining migration — this time, out West.

 

In an interview with Yahoo Finance, Xive Mining co-founder Dibar Bekbauov said that many of the country’s mining companies are increasingly looking to the U.S. as "one of the top priorities" for expansion, largely because of the availability of cheaper electricity. 

 

"I believe that U.S. will be the biggest mining hub in the world," he said. "More than 60% of the total hash rate will be in the United States within two years."

 

Such a move would not come cheap or easy, according to Colin Harper, head of content and research at Luxor, a bitcoin mining pool and software company.

 

The U.S. is now estimated to account for 35.4% of bitcoin’s hash rate. Harper told Yahoo Finance that because the country provides both abundant power and a more robust rule of law compared to other mining hotspots, competition for materials to build a mining facility or space to lease has compounded over the last year.

 

Adding to the hangover are China-based bitcoin miners that relocated to the U.S. and North American companies expanding. As a result, Kazakhstan-based miners thinking of moving to the U.S. could face a sizable hit to their bottom lines.

 

Sizable enough, especially if they just settled in the country after migrating from China that, according to Harper, some of them “might throw in the towel.”

 

'Green' in the U.S.A

 

The favorable condition the U.S. offers bitcoin miners is higher access to renewable energy sources.

 

Bitcoin mining’s energy intensity remains a hotly debated topic between climate activists, academics and miners themselves. Miners aren’t necessarily incentivized to seek renewable energy but it's become a major focus as the price of bitcoin has skyrocketed in 2020 and 2021.

 

According to an annual report from Luxor, “publicly traded miners (and those seeking to go public) will continue to “green" their operations by seeking renewables directly or purchasing carbon credits/offsets for two main reasons. First, companies will choose to do so voluntarily to “mollify criticism.” Second, ESG mandates from U.S. regulators will demand it.

 

Alex de Vries, founder of Digiconomist, an economics blog, is a staunch critic of the industry’s energy consumption. De Vries told Yahoo Finance in late August that “miners need cheap and stable power; and (obsolete) fossil fuels are simply better at delivering both.”

 

On Jan. 20, the U.S. House Energy and Commerce Committee will hold a hearing on the energy impacts of cryptocurrency, and bitcoin mining is expected to take a central focus.

 

In total Cambridge Center for Alternative Finance, clocks the industry as consuming 126 Terra watts hours (TWh) per year, which is more electricity than the Ukraine consumes and more than the electricity consumed by residential lighting and television in the U.S. However, these comparisons are not 1-to-1.

source: https://ph.news.yahoo.com/kazakhstan-bitcoin-miner-says-us-will-make-up-60-of-the-worlds-hash-rate-in-2-years-201249623.html

 

Edited by kyoukage01

 

New to the Cryptotalk forum? Here's something that might help you get started:

https://cryptotalk.org/topic/24401-forum-tutorials-tips-and-tricks-for-newbies-compilation/

 

Share this post


Link to post
Share on other sites

Yes, indeed, lawlessness in Kazakhstan led to the shutdown of the Internet and, accordingly, a general problem for miners. At the same time, this coincided with the expectation of an increase in the base interest rate of the USA Federal Reserve System. As a result, we see a "red" market. If the situation in Kazakhstan does not change, then miners will again move to another country.


https://app.grandtime.org/r/8GKz

Grand Time project

Launchpad

Share this post


Link to post
Share on other sites

  • Recently Browsing   0 members

    No registered users viewing this page.

  • Topics

  • Сообщения

    • нет конечно ахахха написал же в конце " Если им правильно пользоваться" .Кстати последнее видео  пока не отработало уже два дня в шорт стою ,  результатов ноль даже - 30% было в позе. Странно для него 
    • Я тоже не сторонник, но с другой стороны понимаю, что того уже не избежать. Какое-то время цифровой рубль будет еще тестироваться, но постепенный перевод на эту валюту рано или поздно будет. И вы правы, это не сулит обычным людям ничего хорошего.
    • bnb перспективная монетка, я на бинансе ее не стейкаю, только usdt держу, там ставка плавующая, то 10%, то 7%, но все равно больше, чем в банках и надежно
    • Hey guys 🙂 We invite you to celebrate the Year of the Tiger with Wazdan! Have a great time and achieve prosperity with Wazdan Network Cash Drop! Become one of the 300 winners to share cash prizes worth €30,000 😎    Things to know:   * Participating games: 9 Lions, 9 Tigers, Butterfly Lovers, Dragons Lucky 8, Fortune Reels, Prosperity Pearls, Sic Bo Dragons, Sun of Fortune. * No min bet size requirement. * Any bet can trigger a prize from the prize pool. * Players can win more than one random prize * Cash prizes do not have any wagering requirements. * All prizes won will be instantly credited to the players’ casino accounts. * The promotion runs until February 10th, 2022 08:00 (GMT).    Come and grab your share 😉     Enjoy 🙂  Karl Bitcasino.io  
    • Если ты заинтересован этой сферой, реально имеешь интерес и хочешь в дальнейшем этим заниматься, то конечно же нужно, маленькое количество времени это только то, на сколько вы быстро приступите к работе, можно и час времени делу уделять
    • можете почитать что он заявил) шиза это так к слову) в принципе ничего критического у него нет и он всё так же правит парадом когда пишет твиты про доги и все это понимают и зарабатывают. 
    • ахаха ) вот это главное - если коечно что то то поймается )) так что вагер то может и накрутится , но вот сколько денег при этом сольется это тоже вопрос. так что вагер крутить уж лучше проверенными и более безопасными способами ) ну а мне мой вариант больше нравится , делаешь за несколько минут сразу столько сколько час крутить надо в дайсе или других играх  . меньше времени тратиться , мне как раз такой вариант больше подходит )
    • Верно. Единственное у кого бы я такой кредит взял это разве что какой то Европейский банк. Но их там единицы которые выдают или выдавали кредиты под залог крипты например. Но все равно в силу того что механика не обкатана я бы не слишком в это ввязывался. Тема кредитов вообще скользкая а связанная с криптой и того сложнее. Тем более уверен что юристы такого банка наверняка все так выписали что при любых раскладах банк будет в плюсе а все возможные потери возложены на клиента/заемщика.
    • Я присоединился к криптовалютному бизнесу и решил инвестировать в валюту, потому что это один из лучших и самых простых способов получения прибыли.
    • Может и так если они всё же запустят такое то это будет означать что появится спрос на монету и она может вырасти в цене на сколько конечно не известно да и спекулянты попробуют на этом конечно же нагреется особенно после того как вы сказали он сожрёт в прямом эфире их продукт. Но не как Илон Маск не может просто так мимо монеты Doge пройти так и пытается каждый раз её куда то пристроить а мы говорим что он её бросит некогда наверное такого не будет и интересно кто будет следующий кому он её предложит.
×
×
  • Create New...