According to the Data Center Industry & Blockchain Association of Kazakhstan (NABDC), cryptocurrency mining could generate $1.5 billion in revenue over the next five-years. Current estimates show that corporate cryptocurrency mining generates approximately 98 billion tenge ($230million) annually in Kazakhstan. The president of NABDC, Alan Dordzhiev made the following statement, as reported by kapital.kz
The 98 billion tenge figure is not an economic result from mining companies. This figure can safely be multiplied by 2 if we include the “gray” miner.
In context, the term “gray miners,” refers to individuals who operate their own crypto mining operations. This is often done with disputed legal status. To prevent electricity shortages, the association demanded greater regulation to fight illegal mining. According to Dordzhiev, the country’s grey area miners use approximately 500 MW of electricity. The draft order by Kazakhstan’s Department of Energy was issued earlier this month to limit the electricity consumption of the crypto mining industry.
The University of Cambridge data shows that Kazakhstan contributed 18.10% to the world’s Bitcoin mining hash rate. This is the second largest worldwide, following China’s crackdown on mining activities. This puts it behind the 35.40% U.S. hash rate share and above Russia’s 11.23%. GlobalPetrolPrices data shows that Kazakhstan’s average cost for commercial-use electricity is $0.054/kWh. This is due to Kazakhstan’s vast fossil fuel reserves.