Kazakhstan Predicts $1.5 Billion in Crypto Mining Returns in 5 Years

The former Soviet republic of Kazakhstan is taking renewed efforts to target the Bitcoin mining sector. The country is already one of the biggest players in the industry and is benefitting a lot from it. The move reflects the growing tendency of remote, cold countries of the world to encourage Bitcoin mining in their areas, especially places with abundance of cheap energy.

 

Kazakhstan’s Growing Bitcoin Mining Industry

According to Alan Dordzhiev, the president of the National Datacenter Industry and Blockchain Association (NABDC), the country is currently generating around 98 billion Tenge ($230 million) per year through the mining sector ranks second in the world.

He said:

The figure of 98 billion tenge is just an economic effect from companies that are officially involved in mining. If we take into account the “gray” miners, then this figure can be safely multiplied by 2″

Grey miners is a term used by regulators to describe miners who are operating in an individual capacity and aren’t registered with the government. Ultimately, if the process of mining is declared beneficial by the government, even they are expected to contribute positively to the setup. However the NABDC has decided to crack down against grey miners and bring them to the regulatory fold. There is currently no united voice for the grey miners and there is simply no mechanism to identify them.

 

Massive Energy Used in the Process

Grey Bitcoin mining is expected to use around 500 MW of electricity in the country. This is a big figure considering the relative population and energy production of the country. While there aren’t many issues right now, if the industry grows at a fast pace, the regime may have to enact energy limitations to the sector.

Still, even without the intended increase, mining is a big sector in the country and is contributing jobs to the economy. The country itself has a whopping 18% of the total hash rate in the world according to a study by The University of Cambrdige. Previously, this spot was held by China but the blanket crypto ban in the country has almost eliminated the Chinese share from the market and other countries have taken its slice of the pie.

The top country when it comes to Bitcoin mining is still the United States with an enormous 35% share of the proceedings overall. USA’s shares have seen massive increase as many of the Chinese miners have fled across the Pacific to the USA.

Image Source: pixabay.com

Talha Dar

Talha Dar

Cryptocurrency and blockchain enthusiast. Working on free economy and borderless solution side of things. Live and breathe crypto!

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