Crypto mining has gained significant popularity since cryptocurrencies have become so much more popular over the past few years. Mining allows people to get their hands on the cryptocurrency without having to spend money buying it at an exchange. Instead, miners pay with processing power instead of actual money.
Computers designed to better decipher and perform calculations are built by these miners to acquire their favorite cryptocurrency. The only issue with mining is that it has a massive carbon footprint throughout the world. Since these computers will have to stay on for quite a while, they will be using up a lot of electricity.
And while many have made the argument that crypto mining can be completely sustainable if electricity is made through more renewable sources. But that is just not possible, given that a lot of countries do not have the infrastructure to start a project that massive. And the country that is facing the brunt of pressure from environmental groups is Kazakhstan.
Kazakhstan has managed to become the third largest hub for crypto mining, owing to its relatively cheaper electricity. Mining requires very cheap electricity in order for the endeavor to even be profitable. However, the real issue is the country’s already high carbon emissions increasing significantly due to crypto mining.
Results from various studies show that Kazakhstan’s share of the global processing power for cryptocurrencies seems to be increasing at an unprecedented rate. These results become even more startling when you notice that other major hubs for crypto mining have managed to steadily decelerate. China is possibly the biggest example, as they have been cracking down on crypto mining for quite some time now.
China’s crackdown on cryptocurrencies has left various companies in a very peculiar position, as they are now moving to other countries. BIT mining, one of the biggest companies dedicated to mining in China had to move a large part of their operations to Kazakhstan. They were able to move 320 servers for the time being, but they are very optimistic about moving there completely. As of now Kazakhstan is hosting 20 unique crypto farms, easily making it one of the biggest crypto mining countries in the world.
The9, another major crypto mining company, came into an agreement with a local company in Kazakhstan. The agreement between the two companies would ensure that The9 would have a dedicated mining facility by 2022.
The major reason that people are making the move to Kazakhstan is that they have very cheap electricity. While it is not as cheap as China, it is still quite cheap at only five cents per kWh. That is cheaper than both Russia and the US.