Bitcoins are a cause of protests in Kazakhstan

Bitcoins are a cause of protests in Kazakhstan
Bitcoins are a cause of protests in Kazakhstan
Digital economy

Bitcoin would be a cause, perhaps the main one, of protests in Kazakhstan, which has now become the second largest in the world for bitcoin mining.
We are all witnessing the strong protests that flared up in Kazakhstan motivated by an electricity and gas crisis as well as a rise in the price of energy. One of the triggering causes, both of the protests and of the situation in which the country finds itself in terms of energy, are also Bitcoins. In fact, since China has tightened its policies towards cryptocurrencies by banning their mining, many miners have moved to Kazakhstan to mine them. This has led to an incredibly high rise in the demand for energy and these are the results.
Legal and illegal Bitcoin mining is a cause of Kazakhstan’s problems
According to some data published by the Financial Times, in the last year about 88,000 crypto mining companies have moved from the Chinese provinces to Kazakhstan due to the prohibition policies approved by Beijing. Kazakhstan was a favorite destination for two factors. First of all because the country is rich in hydrocarbons. Second, for the relatively low energy costs, which are advantageous for Bitcoin mining.
Obviously, it is not only these companies that have legally moved to Kazakhstan for mining. In fact, 50% of the total also includes those who mine Bitcoin illegally in the country. This is why the Kazakh government has decided to tighten its rules against those who mine cryptocurrencies illegally.
In addition to this provision, which may be applied in recent months, the government has also increased the price of electricity to registered Bitcoin mining companies since January. The cost per kilowatt hour has risen to one tenge, equal to 0.002 euros. In addition, it is planned to reduce the flow of electricity to the capital by rationing that destined for the extraction of cryptocurrencies.
Meanwhile, the country is in great difficulty and the current government, overwhelmed by all these pressures, has resigned. In the next few days we will find out the fate of the Kazakhs and what will happen with regards to Bitcoin and its extraction. The intention to switch to nuclear power to deal with cryptocurrency mining will most likely also remain in limbo.