I never thought that a country could allow cryptocurrency mining on its land. However Kazakhstan is thinking of setting up a nuclear power plant to remove the shortage of electric energy, which has been seen just after Chinese cryptocurrency miners brought their hardware to Kazakhstan. As you know, China has already put a ban on crypto mining in their country.
Like China, the Indian government also decided not to allow cryptocurrency mining in the country, but currently there is no law to ban cryptocurrency mining in India. The ban will be imposed once the bill is approved in the parliament. However India wants to regulate cryptocurrency as an asset, but not as a legal tender. These things are just a speculation so far. Crypto bill 2021 is still pending to be introduced in the parliament. It was to be introduced in the winter session of parliament which ended in 2021. The bill was listed but no discussion happened on it.
I don’t know what benefits Kazakhstan sees in crypto mining, but others are not able to see those benefits. In order to run a nuclear power plant, a country needs uranium which is easily available in Kazakhstan. Kazakhstan, Canada and Australia mine over two-thirds of the total production of uranium in the world. Nevertheless, Kazakhstan uses coal as the fuel to run seventy percent of their power plants. They are now planning to set up a nuclear power station to provide enough energy for the country as well as cryptocurrency miners.
India currently has seven nuclear power plants in the country. On the other hand Kazakhstan has no nuclear power plant except the Aktau nuclear reactor which stopped operating in June 1999. I think India is more capable of producing enough power for crypto mining than Kazakhstan.
Cryptocurrency mining requires huge electricity and separate hardwares to solve complex math problems that are impossible for normal computer systems to solve. The computer owner gets incentivized with a crypto coin for solving a math problem. Bitcoin miners receive bitcoin as a reward for solving a complex math problem. On the other hand, ethereum miners get ether as reward for the same work.
Bitcoin mining consumes huge electric energy which is around 91 terawatt-hours of electricity annually. That’s why most of the countries don’t allow cryptocurrency mining. It seems there should be a separate power plant for crypto mining. A separate power plant means more expenses for the government. That’s why Kazakhstan made a law to collect additional fees from cryptocurrency miners.
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