According to data from Cambridge Center for Alternative Finance, Kazakhstan is the third top Bitcoin mining destination. The data shows that Kazakhstan contributed more than 13.22% to Bitcoin’s total hash rate.
The Bitcoin mining industry was historically focused in China and the United States. Even today, these two countries contribute to more than 57.50% of Bitcoin’s total hash rate. The United States accounts for 37.84% of the hash rate while China accounts for only 21.11%. As for their exahashes per second (EH/s) contribution, data from Cambridge Center for Alternative Finance shows that the United States contributes 71 Eh/s, China contributes 39.6 Eh/s, and Kazakhstan contributes 24.8 Eh/s to the absolute hash rate. For your information, these stats are the equivalent of the monthly average of these countries’ absolute hash rate contribution.
Understanding that Bitcoin mining uses considerable amounts of electricity, the International Energy Agency (IEA), pinpointed the fact that Kazakhstan is heavily reliant on non-renewable energy. This translates to using pollutants such as oil, coal, and natural gas for electricity and heat generation. This means that Kazakhstan is contributing to pollution and climate change by participating in the process of mining Bitcoin.
Last year, China banned Bitcoin mining activities because of environmental and money laundering concerns. This ban resulted in a major migration of Bitcoin miners outside of China. Most miners continued to operate in the United States and Kazakhstan, placing them in the 1st and 3rd spot respectively. These two have been part of the Top 3 Bitcoin mining destinations since that day. Just recently, China lifted the temporary Bitcoin mining restrictions. However, this move did not affect the Top 3 since the United States is still the preferred Bitcoin mining destination by far.
Kazakhstan Pro Crypto Agenda
Recently, several countries have highlighted their support for blockchain technology implementation. During the Digital Bridge 2022, the President of Kazakhstan, Kassym-Jomart Tokayev, stated that he envisions Kazakhstan as a leader in the field of crypto. Moreover, he shared his ideas on the future of digital technology, regulated mining, and the cryptocurrency ecosystem.