Kazakhstan is a country in Central Asia that became a crypto mining hub following the Chinese crypto clamp down and miner’s migrations. For now, the nation might have to suspend Bitcoin mining temporarily.
The country faces an electricity shortage that intensifies during winter. That might see the government imposing BTC mining restrictions to ensure citizens get ample electricity.
Kazakhstan’s Bitcoin mining share increased 6-times in April 2021. That followed the stiff anti-cryptocurrency regulation by China’s watchdogs. The move forced many BTC miners to relocate to countries with high electricity supplies. Keep in mind that China accounted for more than 75% of global cryptocurrency mining but declined drastically after April. Most analysts believe that miners managed to relocate to nations with friendly mining policies.
The BTC ecosystem’s hash power plunged by half after China’s exodus returning to pre-Chinese clampdown levels at the moment. That indicates that most miners succeeded in turning their operations online.
Kazakhstan Might Restrict BTC Mining Temporarily Like Iran
Electricity challenges in regions offering legal BTC mining activities have become a usual thing. Iran had to deal with similar calamities during Q1 2021. Iranian administration legalized Bitcoin mining in the nation to help improve its plunging economy and battle trade sanctions. However, authorities noted that illegal miners exploited limited power sources, resulting in blackouts in the streets. That had the Iranian government declaring a BTC mining temporary ban until 22 September to guarantee ample energy during summer.
Similarly, Kazakhstan may have to implement a temporary ban on BTC mining to ensure a stable power supply throughout the severe winters.
On the other side, Bitcoin trades on a recovery mood at its hovers at $44,735 today, Friday. The daily price chart indicates the BTC’s price dropped towards $39,598 lows this week. However, the dominant digital token rebounded almost immediately as investors bought the dip.
For now, BTC price remains under the 25- and 50-day Moving Averages, translating to multiple hurdles for bulls. Therefore, the asset has to move above the two MAs to alleviate short time price pressure. However, unwelcoming developments might challenge Bitcoin recoveries.
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