07 May Kazakhstan Could Earn USD 1.5B from Crypto Mining in 5 Years – Association
With crypto mining on the rise in Kazakhstan, the country’s economy could benefit from more than USD 1.5bn in revenue from legal mining operations in the next five years, according to estimates by the Kazakh National Association of Blockchain and Data Center Industry.
“If we only talk about the legal market players, data centers receive about USD 310m per year for their services, USD 200m of which is spent on buying electricity from the state,” Alan Dorjiyev, the president of the association, was quoted as saying by the Kazakh edition of Forbes magazine.
To prevent potential electricity shortages, the association has developed proposals on solutions that could eliminate this problem. According to its representatives, reducing crypto mining’s electricity consumption by more than 35% would safeguard the nation’s electricity grids against such a scenario. The association has also declared its support for the fight against illegal crypto mining.
The proposals were prepared in relation to the Kazakh Energy Ministry’s recently prepared draft regulation on crypto mining and electricity use which has spurred discussions within the crypto mining industry.
For energy-rich Kazakhstan, crypto mining provides a chance to benefit from the country’s domestic energy production. This comes as mining industry observers forecast that the sector could become a net positive for the world’s energy industries in the near future.
Kazakhstan is a major fossil fuel producer, which includes coal, crude oil, and natural gas. In 2018, the country’s total energy production, at 178 million tonnes of oil equivalent (mtoe), covered more than twice of Kazakhstan’s energy demand. Coal represents around 50% of the nation’s energy mix, followed by oil and natural gas, at 25% each, according to data from the International Energy Agency.