A report from the Association of Data Centers, Industry and Blockchain of Kazakhstan (NABDC) states that cryptocurrency mining could bring the country $ 1.5 billion in revenue over the next five years. Currently, mining companies using cryptocurrencies bring in about 98 billion tenge (230 million US dollars) per year in the country. According to the local news agency kapital.kz, NABDC President Alan Dordzhiev made the following statement:
The figure of 98 billion tenge is just a financial blow to companies that are officially engaged in mining operations. If we evaluate the “gray” miners, then this number can be safely multiplied by 2.
In this context, the term “gray miners” refers to individuals who conduct their cryptocurrency mining operations – often with controversial legal status. The association called for increased regulation against illegal mining to prevent potential power shortages. According to Dordzhiev, miners from the gray zone consume about 500 megawatts of electricity in the country. Earlier this month, Kazakhstan’s Ministry of Energy proposed a draft order imposing restrictions on the amount of electricity consumed by the crypto mining industry.
According to the University of Cambridge, Kazakhstan accounted for 18.10% of Bitcoin mining hashrate (BTC) – the second largest in the world after China began suppressing mining. This represents 35.40% of the hash rate in the US and above 11.23% for Russia. According to GlobalPetrolPrices, the average cost of commercial electricity use in Kazakhstan is $ 0.054 per kilowatt hour, well below the global average of $ 0.124 per kilowatt hour given the country’s vast fossil fuel reserves.