Kazakhstan is not a Bitcoin mining paradise, so miners want to relocate to territories like Russia and the United States. The bans against Bitcoin mining lead farm operators to debate whether to take their equipment elsewhere, but they still do not know where.
Once the riots and protests in Kazakhstan ended, the police lifted their operations, and troops from allied countries like Russia withdrew. However, that is not the end of the difficulties for Bitcoin miners in a country concentrating 18% of the hash rate.
The Kazakh government recently suspended the electricity service to Bitcoin mining farms until the end of the month. A blackout also left the entire national territory, Kyrgyzstan and Uzbekistan, in the dark.
For that reason, Bitcoin miners want to move their operations to territories like Russia and the United States. They realized that Kazakhstan was not the same paradise as when they left China two years ago. The political problems and the instability of the electrical system force them to seek better options for their activity.
The Blackouts in Kazakhstan Do Not Affect the Bitcoin Hash Rate
The most recent Bitcoin mining difficulty adjustment indicates that the hash rate has not stopped growing. This increase in difficulty has been the highest since August 2021. Then, the network already showed the first signs of a hash rate recovery after the Chinese government prohibited the activity.
This difficulty adjustment recorded 26.64 T, 9.32% above the previous period, in which it reached 24.37 T. In that way, Bitcoin again exceeds an all-time high of difficulty, making it more difficult to mine that network. Besides, it has never had so much protection against 51% attacks and hacks before.
The same as the hash rate, Bitcoin difficulty adjustments have continued to rise, surpassing the highest levels of 2021. That does not seem to relate to a low hash rate or the difficulty of mining the network but a high volume of incoming transactions.
That could be due to reorganization movements in the positions of Bitcoin traders before the announcements of the US Federal Reserve. Those measures may have been affecting the price of the pioneering cryptocurrency.
Bitcoin Miners in Kazakhstan and Kosovo Find Options in Latin America
The bans against Bitcoin mining in Kosovo worry miners, who debate whether to sell their equipment or take it elsewhere. However, they still do not know the best destination for their activity.
The answer could be in Latin America, where miners from Kazakhstan, Iran, and other countries arrive. Regions like Paraguay, Argentina, and Costa Rica offer better conditions for developing that business.
The municipal government of Borgo D’Anaunia, Italy, decided to mine Bitcoin from a regenerated power plant. Although it was not a private sector initiative, it is an excellent example of recycling energy to operate a mining farm.
The above occurs when the European Union is thinking about banning Bitcoin mining, alleging that it is inefficient and harmful to the environment. However, studies reveal that this is far from reality, as 58% of that activity uses renewable energy.
By Alexander Salazar
