Kazakhstan Has Probably Less Bitcoin Hash Rate Since the Last Index

Ricardo Rivas
Updated: Feb 21, 2022, 16:58 UTC

The new Cambridge Bitcoin Electricity Consumption Index (CBECI) is expected to be released in March with the latest Bitcoin Hash Rate shares by country.

Kazakhstan Has Probably Less Bitcoin Hash Rate Since the Last Index

Following China’s ban, Kazakhstan has become one of the major countries where Bitcoin miners have relocated. But, they have been facing many difficulties in their operation.

The University of Cambridge, in August 2021, published a study of Bitcoin mining Hash Rate shares per country.

The U.S. had the highest share with 35.4% of the total bitcoin Hash Rate. In second place was Kazakhstan with 18.1% and in third place was Russia with 11.2%.

Last month a major power outage occurred in Kazakhstan, leaving the south of Kazakhstan with no electricity. As the energy crisis continues in Kazakhstan, earlier this month, the Kazakhstan government considered a 500% tax on Bitcoin miners because of its critical situation.

Some crypto professionals believe that when the CBECI is published next month, Kazakhstan will probably lose its second place of highest Bitcoin Hash Rate share.

What Are Crypto Professionals Expecting From Kazakhstan’s Bitcoin Mining Situation?

Four days ago, on February 17, BIT Mining, one of the main crypto mining companies operating in Kazakhstan said:

“The Company has terminated its data center construction plan in Kazakhstan, which was announced in May 2021, due to the unstable local power supply.”

Co-founder of Origin Protocol Josh Fraser told Cointelegraph recently:

“Countries that rely heavily on those energy sources for crypto mining could see a drop in hash rates due to increased prices or state intervention I would expect Russia, Kazakhstan, and Iran to drop a bit.”

Europe Is Not the Best Place To Mine Crypto

Things are not looking good in the EU when it comes to crypto mining. Less than two weeks ago, the Central Bank of Hungary, announced a possible crypto mining and trading ban. 

Vice-chair Erik Thedeen of the European Securities and Markets Authority (ESMA) called for a ban on crypto mining last month.

Despite all the regulatory issues surrounding Bitcoin mining, last week Bitcoin’s Hash Rate and Mining Difficulty reached a new all-time high.

One sure thing is that more miners are entering the Bitcoin network, no matter what’s happening in the regulatory field. 

We’ll see what happens next month when the new index is released if the U.S. gains more share and Kazakhstan loses its 2nd highest position.

About the Author

Ricardo is a Venezuelan engineer and technology enthusiast, who discovered the world of blockchain and cryptocurrencies in 2016. Since that time onwards, he has been working as a blockchain and crypto freelancer consultant, he also worked in the crypto mining industry, and acquired knowledge in different blockchains.

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