Kazakhstan Becomes The Third Largest Bitcoin Mining Country In The World, 24.8 Exahash Per Second

Kazakhstan, a new paradise for bitcoin miners. (photo: dock. unsplash)

JAKARTA - For more than a year, the oil-rich country in Central Asia, Kazakhstan, has maintained its position as the world's third-largest contributor to Bitcoin mining after surpassing Russia in February 2021.

In January 2022, Kazakhstan contributed 13.22% of the total Bitcoin hash rate. The country is below the United States (37.84%) which has been the largest miner since China (21.11%).

During the same period, the Cambridge Center for Alternative Finance data estimated that the contribution of Kazakhstan's absolute hash rate (monthly average) was 24.8 exahash per second (Eh/s). Meanwhile, the US and China contributed 71 Eh/s and 39.6 Eh/s, respectively.

The International Energy Agency (IEA), co-funded by the European Union, highlights Kazakhstan's huge dependence on in renewable energy, such as oil reaching more than 50%, coal (28%) and natural gas (17%) until 2020.

The study also revealed that most coal is used for power generation and heat, while most oil is used by end consumers, especially in highway transportation.

However, the top three countries that contributed to the Bitcoin hash rate continued to eat away at other players' share, such as Malaysia, Germany, and Iran. Kazakhstan was one of the first to welcome abandoned Chinese miners when the government imposed a total ban on Bitcoin and crypto mining and trading.

China restarted mining operations in September 2022, but the temporary mining ban removed the country's position as the world's largest Bitcoin mining hub, placing the US at the top since then.

Local reports from Kazakhstan highlight the country's intention to legalize the mechanism to convert cryptocurrencies into fiat or official money.

Speaking at the international forum Digital Bridge 2022, President Kassym-Jomart Tokayev shared his vision of making Kazakhstan a leader in the field of digital technology, the cryptocurrency ecosystem, and regulated mining.

"We are ready to go further. If this financial instrument shows further relevance and security, it will definitely accept full legal recognition," Tokayev said, as quoted by Cointelegraph.