For more than a year, oil-rich Central Asian country Kazakhstan has maintained its position as the third largest contributor to bitcoin mining. (BTC) after outperforming Russia in February 2021.
In January 2022, Kazakhstan contributed 13.22% of the total bitcoin hash ratestanding just after the historical leaders, the United States (37.84%) and China (21.11%)as it’s shown in the following.
On a similar timeline, data from the Cambridge Center for Alternative Finance estimated that Kazakhstan’s absolute contribution to the hash rate (monthly average) was 24.8 exahashes per second (Eh/s). For their part, the United States and China contributed 71 Eh/s and 39.6 Eh/s, respectively..
The International Energy Agency (IEA), co-financed by the European Union, highlighted Kazakhstan’s heavy dependence on non-renewable energysuch as oil (more than 50%), coal (28%) and natural gas (17%) until 2020. The study revealed:
Most of the coal is used for electricity and heat generation, while most of the oil is used by final consumers, mainly in road transport.
However, the top three countries that contribute to the bitcoin hash rate continue to outperform the share of other players, such as Malaysia, Germany, and Iran. Kazakhstan was among the first to welcome displaced Chinese miners when the Chinese government imposed a blanket ban on bitcoin and cryptocurrency mining and trading..
China resumed mining operations in September 2022, but the temporary ban on mining stripped the country of its position as the largest bitcoin mining hub.putting the United States on top ever since.
Local reports from Kazakhstan highlighted the country’s intention to legalize a mechanism to convert cryptocurrencies into fiat.
Speaking at the Digital Bridge 2022 international forum, President Kassym-Jomart Tokayev shared his vision of making Kazakhstan a leader in the field of digital technology, cryptocurrency ecosystem and regulated mining.
“We are prepared to go further. If this financial instrument proves its increased relevance and security, it will certainly receive full legal recognition,” Tokayev said..
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