Bitcoin Miners in Kazakhstan Lament Tapering of Power Supply
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Bitcoin (BTC) miners in Kazakhstan have gotten thrown into uncertainty, as the nation’s government places caps on energy supply due to the growing difficulty in servicing its power needs.
The new government order has reversed what used to be one of the cheapest locations to mine crypto, just as mining Bitcoin becomes more profitable this year.
Kazakhstan became a mining hub earlier this year following the mass migration of miners from China. As of August, Kazakhstan had become the second-largest Bitcoin mining hub globally, according to Cambridge Center for Alternative Finance.
However, things changed in October after the Asian nation suffered a deficit of electricity generation after two of the nation’s largest power stations shut down for maintenance.
Between January to September, Kazakhstan experienced increased use of power due to the massive influx of miners.
According to official reports, the country has about 50 registered crypto mining firms consuming 700 megawatts of power; as of October. Meanwhile, the Energy Ministry of Kazakhstan noted that there are several unregistered miners, known as gray miners, consuming an additional 250 megawatts.
The ministry considered issuing a power restriction order on new cryptocurrency miners in October but dropped the plan due to the unpopularity and potential backlash. Instead, it amended existing legislation that allowed grid operator Kegoc to cap or reduce power supply to crypto miners in the event of a power deficit to forestall total blackouts.
Needless to say that this has put BTC miners in the country in a tight position.
Key Bitcoin Levels to Watch — December 9
BTC continues to struggle to record any meaningful bullish traction above the $50K barrier despite recording positive on-chain metrics. New reports show that Bitcoin’s hash rate is just 4% away from its previous record high, a solid indicator for the network and price.
However, the prevailing directionless bias likely comes as the market awaits the congressional hearing on crypto regulations in the US later today. That said, the sideways pattern will likely continue towards the end of Thursday and should record a breakout based on the outcome of the Congress meeting. Nonetheless, popular opinion suggests that a bullish breakout is more likely in the near term.
Meanwhile, my resistance levels are at $50,000, $50,500, and $51,400, and my key support levels are at $48,500, $47,000, and $46,000.
Total Market Capitalization: $2.33 trillion
Bitcoin Market Capitalization: $930 trillion
Bitcoin Dominance: 39.9%
Market Rank: #1
