I believe this is not for the miners but they just actually looking for some way to increase their profit due to the lots of what going on out there. Their country is not doing well and they are about to fix their financial problems by fixing the rates of everything. Looks like the price hikes on the electricity bill are more on to take place this year because they won't hesitate to implement it while they still have the chance right now.
The reason why they are manipulating the tax for bitcoin miners may be because to increase the profits or income of kazakhstan. this is a good opportunity and they should really take advantage of it to take full advantage. Kazakhstan knows that bitcoin is a digital asset that costs a lot and mining bitcoins also benefits a lot. But at least the electricity tax target charged to crypto miners should still be on the threshold and not extort miners too much. Those miners will also move if the tax is deemed too expensive. 
Topic: Kazakhstan proposes power price hikes and taxes targeting crypto miners (Read 531 times)
February 11, 2022, 09:32:50 AM
February 11, 2022, 08:54:26 AM
" He also proposed a tax on each individual graphics card (GPU) and each piece of equipment needed for crypto mining. He likened the tax-per-video card to the way casinos are taxed for each table they run, whether or not the table is active. "
1. He is going to piss off all gamers and computer retailers in his country.. that has nothing to do with Crypto mining when they buy/sell GPU's.
2. Crypto miners will go underground in basements or in roof tops like they did with Marijuana farming.
3. Some Crypto miners will simply relocate to Crypto mining friendly countries.
So guess who is going to lose with a stupid decision like this..... the government that implemented this. (Taxes pay their salaries)
1. He is going to piss off all gamers and computer retailers in his country.. that has nothing to do with Crypto mining when they buy/sell GPU's.
2. Crypto miners will go underground in basements or in roof tops like they did with Marijuana farming.
3. Some Crypto miners will simply relocate to Crypto mining friendly countries.
So guess who is going to lose with a stupid decision like this..... the government that implemented this. (Taxes pay their salaries)
February 11, 2022, 08:34:03 AM
I don't understand why countries can't just own it when they're lucky to have many miners, and provide a reasonable regulatory framework for them. In my country, the electricity cost depends highly on how much electricity is being used (it's one sum per Kwh if the totall is up to 100, another if it's up to something bigger, and so on), and it's a pretty fair system because it doesn't target any activity specifically but focuses on what matters: consumption of electricity.
As for the idea of taxing GPUs, I see a big problem here: how can they know if the GPU's bought for mining or for a custom PC? This could lead to prices going even higher than they already are, in this crazy period of shortages. As for taxes, why not simply tax miners with income tax, just like any other income would be taxed? They can declare monthly income and pay a certain percentage of it in taxes. As for removing the VAT exemption, that seems reasonable to me because I don't see why it's exempt in the first place. In any case, it's just a proposal by one important person; it doesn't mean it'll actually be adopted.
As for the idea of taxing GPUs, I see a big problem here: how can they know if the GPU's bought for mining or for a custom PC? This could lead to prices going even higher than they already are, in this crazy period of shortages. As for taxes, why not simply tax miners with income tax, just like any other income would be taxed? They can declare monthly income and pay a certain percentage of it in taxes. As for removing the VAT exemption, that seems reasonable to me because I don't see why it's exempt in the first place. In any case, it's just a proposal by one important person; it doesn't mean it'll actually be adopted.
I think you are wrong in saying that everyone is entitled to the same electricity rate. Of course, in terms of determining electricity rates, they must be different for the sake of mutual justice and the welfare of the country. In terms of determining electricity rates, we must distinguish which class is for industrial customers, of course, it is different from home customers. and I think bitcoin mining falls into the category of industrial customers.
February 11, 2022, 06:43:03 AM
I don't understand why countries can't just own it when they're lucky to have many miners, and provide a reasonable regulatory framework for them. In my country, the electricity cost depends highly on how much electricity is being used (it's one sum per Kwh if the totall is up to 100, another if it's up to something bigger, and so on), and it's a pretty fair system because it doesn't target any activity specifically but focuses on what matters: consumption of electricity.
As for the idea of taxing GPUs, I see a big problem here: how can they know if the GPU's bought for mining or for a custom PC? This could lead to prices going even higher than they already are, in this crazy period of shortages. As for taxes, why not simply tax miners with income tax, just like any other income would be taxed? They can declare monthly income and pay a certain percentage of it in taxes. As for removing the VAT exemption, that seems reasonable to me because I don't see why it's exempt in the first place. In any case, it's just a proposal by one important person; it doesn't mean it'll actually be adopted.
As for the idea of taxing GPUs, I see a big problem here: how can they know if the GPU's bought for mining or for a custom PC? This could lead to prices going even higher than they already are, in this crazy period of shortages. As for taxes, why not simply tax miners with income tax, just like any other income would be taxed? They can declare monthly income and pay a certain percentage of it in taxes. As for removing the VAT exemption, that seems reasonable to me because I don't see why it's exempt in the first place. In any case, it's just a proposal by one important person; it doesn't mean it'll actually be adopted.
February 10, 2022, 02:34:53 PM
Considering the fact that the bitcoin mining in China wasn't that big and wasn't using that much electricity and the amount they were using were coming from clean renewable sources that wouldn't have existed otherwise and also comparing it to the entire population of the country with 1.4 billion, this reason doesn't seem to be the right motivation behind the crackdown.
In fact I believe it was a move to push people into using their centralized govcoin that they plan on creating (digital Yuan or something like that).
If to look for one of the most centralized government in the world that loves nothing about anything that is not from their country, then it is China, China has the technology and power to make bitcoin mining possible, everything can run smoothly, and not that miners will not pay for the electricity but just that China can never be happy about what is not from their country that they can not control unlike Yuan and their digital Yuan.In fact I believe it was a move to push people into using their centralized govcoin that they plan on creating (digital Yuan or something like that).
As per the article from coin telegraph, it states that Kazakhstan proposed the increase in electricity rates Kazakhstan specifically for the miners, so it means that the electricity used for households or in the industrial sector (not for mining) will still be available at low rates?
If this is so, then how anyone can distinguish that the electricity used is for the mining purpose or some other usage?
It is about miners in Kazakhstan, other business organizations and households are not affected by this for now. If this is so, then how anyone can distinguish that the electricity used is for the mining purpose or some other usage?
February 10, 2022, 11:46:27 AM
After the bitcoin mining ban in China, many miners moved to Kazakhstan and mining in USA increased also, USA beome the country with the highest bitcoin mining hashrates, Kazakhstan following USA become the second country with the second highest mining hashrates. The Kazakh government has proposed taxes that can discouraged mining in Kazakhstan
What can this caused to miners in Kazakhstan, it is like some miners will have no option but to shutdown if this crypto mining taxes become effective. It is possible some miners will be able to still make profit because they are established miners already but what about new miners, this can cause new miners not to be able to make any profit and shutdown, therefore discouraging people to join crypto mining business in the country.
Quote from: https://cointelegraph.com/news/kazakhstan-proposes-power-price-hikes-and-taxes-targeting-crypto-miners
On Feb. 4, Kazakhstan’s First Vice Minister of Finance, Marat Sultangaziyev, proposed a price increase from $0.0023 per Kwh to $0.01 (around a 335% increase) specifically for crypto miners.
He also proposed a tax on each individual graphics card (GPU) and each piece of equipment needed for crypto mining. He likened the tax-per-video card to the way casinos are taxed for each table they run, whether or not the table is active.
The third part of his proposal was to remove mining hardware from an exemption on value-added tax (VAT).
He also proposed a tax on each individual graphics card (GPU) and each piece of equipment needed for crypto mining. He likened the tax-per-video card to the way casinos are taxed for each table they run, whether or not the table is active.
The third part of his proposal was to remove mining hardware from an exemption on value-added tax (VAT).
What can this caused to miners in Kazakhstan, it is like some miners will have no option but to shutdown if this crypto mining taxes become effective. It is possible some miners will be able to still make profit because they are established miners already but what about new miners, this can cause new miners not to be able to make any profit and shutdown, therefore discouraging people to join crypto mining business in the country.
As per the article from coin telegraph, it states that Kazakhstan proposed the increase in electricity rates Kazakhstan specifically for the miners, so it means that the electricity used for households or in the industrial sector (not for mining) will still be available at low rates?
If this is so, then how anyone can distinguish that the electricity used is for the mining purpose or some other usage?
February 10, 2022, 04:45:34 AM
It is a pity that there are no people from China in this topic, but in Russia there are very large markets where trains with goods from China arrive. Sellers take cryptocurrency as payment for goods. And the more I see bans in different countries, the more popular cryptocurrency is.
February 10, 2022, 04:33:51 AM
Such things are temporay. China temporarily crack down Bitcoin mining because in the nation, there is energy crisis and government have to prioritize their whole nation first.
Considering the fact that the bitcoin mining in China wasn't that big and wasn't using that much electricity and the amount they were using were coming from clean renewable sources that wouldn't have existed otherwise and also comparing it to the entire population of the country with 1.4 billion, this reason doesn't seem to be the right motivation behind the crackdown.In fact I believe it was a move to push people into using their centralized govcoin that they plan on creating (digital Yuan or something like that).
Quote
However, have you read the unofficial report, leak on Democratic People's Republic of Korea (DPRK) and their shady activities to attack crypto exchanges, hacks, compromises etc. in order to steal crypto currency for their nuclear power and weapon program.
You mean another FUD like the ones saying "bitcoin is only used in darkweb" LOL. 
February 10, 2022, 04:21:54 AM
Now, since the pandemic in 2020, we have been witnessing another bailout of banks. In this bailout, it happens globally, not only in the US.
The bailouts started a long time ago. Here in Asia before 2000s already a lot of banks were closed down, some after existing over 100 years. And others the corrupt governments bailed out. Then it happened in the US as you said giving birth to Bitcoin. I have a feeling compared to those, the banks and governments feel this time is not so bad. So we have to deal with another few decades of financial corruption. Bitcoin is a shining light but not yet is the time for it to come.
February 10, 2022, 12:49:00 AM
A lot of countries are imposing new taxes on crypto currencies. This may hurt the spirit of crypto enthusiasts. I think governments should think of crypto currency in an opportunistic way rather than treating it as an income generation.
February 09, 2022, 11:08:53 PM
Nice! This is also what I am thinking for such politicians, how sad that corruptions are everywhere, even how improved a country is, corruption is still there.
This is one of the downsides of it, on this side of decision or stand, they are owning and can do whatever they want especially abusing their power.
This is one of the biggest challenges for Bitcoin too, and for sure this is just beginning, other countries will appreciate really use of Bitcoin and will support it especially the miners.
When a degradation occurs, there will be opportunities for others to rise. Governments create bank bail-outs, inflation from which we have Bitcoin genesis block more than one decade ago.This is one of the downsides of it, on this side of decision or stand, they are owning and can do whatever they want especially abusing their power.
This is one of the biggest challenges for Bitcoin too, and for sure this is just beginning, other countries will appreciate really use of Bitcoin and will support it especially the miners.
If anyone missed the moment in 2009, me too. Let's read the Bitcoin wiki: https://en.bitcoin.it/wiki/Genesis_block
The message from Satoshi Nakamoto is
Quote
The Times 03/Jan/2009 Chancellor on brink of second bailout for banks
Now, since the pandemic in 2020, we have been witnessing another bailout of banks. In this bailout, it happens globally, not only in the US. 
February 09, 2022, 09:39:50 PM
The politicians...
First they pump you full of ideals like equality, law and order, no abuse of power by the government, freedom and then life verifies how it really is.
(.....)
Nice! This is also what I am thinking for such politicians, how sad that corruptions are everywhere, even how improved a country is, corruption is still there.First they pump you full of ideals like equality, law and order, no abuse of power by the government, freedom and then life verifies how it really is.
(.....)
This is one of the downsides of it, on this side of decision or stand, they are owning and can do whatever they want especially abusing their power.
This is one of the biggest challenges for Bitcoin too, and for sure this is just beginning, other countries will appreciate really use of Bitcoin and will support it especially the miners.
February 09, 2022, 05:30:22 PM
The politicians...
First they pump you full of ideals like equality, law and order, no abuse of power by the government, freedom and then life verifies how it really is. Miners are doing too well? +300% cost increase for miners! In India they thought people who own crypto are doing to good, so tax them extra. I bet in their dumb heads they think they're doing good because they're enforcing equality through inequality. They're hitting those who are too tall with a hammer to make them equal with the rest.
First they pump you full of ideals like equality, law and order, no abuse of power by the government, freedom and then life verifies how it really is. Miners are doing too well? +300% cost increase for miners! In India they thought people who own crypto are doing to good, so tax them extra. I bet in their dumb heads they think they're doing good because they're enforcing equality through inequality. They're hitting those who are too tall with a hammer to make them equal with the rest.
February 09, 2022, 12:59:33 PM
We need deep understanding about the ground situation in Kazakhstan whether there regular domestic and commercial power supply has been affected by the power consumed by the miners or else what's the reason behind this massive surge in electricity charges and tax, if it's affecting their power supply or creating shortage then they have all the right and it's a sensible decision but it's just the greed of government to extort money from miners then again they have to migrate to a more crypto friendly nations.
The problem here could be the rich miners exploiting the cheap rates, there should be an MOU signed between government and miners to ensure it should be mutually beneficial.
The problem here could be the rich miners exploiting the cheap rates, there should be an MOU signed between government and miners to ensure it should be mutually beneficial.
February 09, 2022, 11:25:55 AM
heck ill quote you quoting me mention bitfarms. and you being silly mentioning marathon
notice the difference
BITFARMS report was about its 210mw facility.. in argentina..
bitfarms was about bitfarms.. not marathon
notice the difference
BITFARMS report was about its 210mw facility.. in argentina..
bitfarms was about bitfarms.. not marathon
Here you go
Bitfarms, Washington, 4cents kwh
https://www.hydroreview.com/business-finance/bitfarms-acquires-24-mw-hydro-power-plant-in-washington-state/
It's Bitfarms, not another company
It's Washinton state, which is located in North America, United States Of America
It's 4 cents, well under the 7 cents you quoted and exactly in the numbers I was mentioning here in the previous message.
Anything else I can help you with? Pills, a ditch? Btw
Quote
The Data Center will lower Marathon’s aggregate mining cost for electricity and data center management to $0.034/kWh, which is 38% below the Company’s current cost of mining.
34c is 38% lower then CURRENT
$0.034 is 3.4 cents not 34 cents in this world, in Frankieland...who knows.
Always here to help you with basic math, as always!
February 09, 2022, 11:14:57 AM
and stompix cries because he read somewhere that they pay $0.022.. spoiler:[ in ARGENTINA]
(yea i read the bitfarms paper too)
(yea i read the bitfarms paper too)
Since when is Montana in Argentina?
https://www.globenewswire.com/news-release/2020/10/13/2107538/0/en/Marathon-Patent-Group-Announces-Joint-Venture-with-Beowulf-Energy-for-105-Megawatt-Bitcoin-Mining-Data-Center.html
heck ill quote you quoting me mention bitfarms. and you being silly mentioning marathon
notice the difference
BITFARMS report was about its 210mw facility.. in argentina..
bitfarms was about bitfarms.. not marathon
out of all the reports it was the bitfarms one that had the cheapest rate. which is why i chose that one as a picking point to show how he got the 2.x c number wrong because it was about a argentina facility
also
maybe he didnt understand that the 7c industrial 12cent residential was also a average.
but lets deal with stompix's new mis understanding. let go with marathons
Bitfarms, Washington, 4cents kwh
https://www.hydroreview.com/business-finance/bitfarms-acquires-24-mw-hydro-power-plant-in-washington-state/
link does not even refer to washington price of 4cent.. its says it helps bring the corporate wide price down to 4cent.. why..https://www.hydroreview.com/business-finance/bitfarms-acquires-24-mw-hydro-power-plant-in-washington-state/
well along with the argentina(at 2.5c) and the quebec(at more) the corporate average becomes 4 cent.. not washington
(10 farms, 4 countries = average 4cent... not washington)
anyway.. stompix.. your boring now.
its still cheaper to mine in kazahkstan. accept it, move on
February 09, 2022, 10:50:24 AM
and stompix cries because he read somewhere that they pay $0.022.. spoiler:[ in ARGENTINA]
(yea i read the bitfarms paper too)
(yea i read the bitfarms paper too)
Since when is Montana in Argentina?
https://www.globenewswire.com/news-release/2020/10/13/2107538/0/en/Marathon-Patent-Group-Announces-Joint-Venture-with-Beowulf-Energy-for-105-Megawatt-Bitcoin-Mining-Data-Center.html
Oh wait I forgot, we're talking about the Frankish world, that world where New York is in Paraguay:
https://www.bloomberg.com/press-releases/2021-01-19/riot-blockchain-announces-s19-pro-antminer-fleet-expansion
Rockdale Texas is in Uruguay:
https://www.sec.gov/Archives/edgar/data/1167419/000107997321000537/ex99x1.htm
And SEC stands for South Ecuador Croissante
The same world where 2.5 cents and 1.4 cents is not cheaper than 7 cents, but more expensive.
In rest, the usual dribble as always, and screaming in pain you've been for the 1000 times caught saying stupid things about activities you don't have a clue about. But keep acting all mighty and knowledgeable, you're a model on how not to end and what are the consequences.
February 09, 2022, 10:37:09 AM
still cheaper to mine in kazahkstan than it is to mine in america
american industrial asic farms pay $0.07
american residential home miners pay $0.12-14
american industrial asic farms pay $0.07
american residential home miners pay $0.12-14
Of course franky, of course.
Poeple here on the forum mine with 4cents but you know from your own experience from the void that the largest miners pay 0.07.
And American residential home miners pay 12 cents minimum, although again plenty of poeple here get it well under 10.
But of course, you know better than anyone else.
I mean fuck Marathon, Riot, Bitdeer, Bitfarms, they don't know shit when they file documents for the SEC with costs of 2.5-4 cents per kwh.
funny part is.
i quote AMERICAN prices as an example..
and stompix cries because he read somewhere that they pay $0.022.. spoiler:[ in ARGENTINA]
(yea i read the bitfarms paper too)
thus he posts a comment to try being sarcastic that americans must not be paying 0.07 because of something he read, but didnt check, because he might have realised that it was to do with.... Argentina..
maybe he has dyslexia. or maybe he thought the US is pronounced Armecina instead of American, it might explain why he got confused thinking americans can pay $0.022/kwh instead of $0.07+
maybe he didnt understand that the 7c industrial 12cent residential was also a average. .. or maybe he just doesnt care and was looking for anything to comment and be sarcastic about without doing the research
last time i looked Argentina is not America
hell i know they both start with a 'A' and end with an 'a' and also have the letters 'r e i' in the middle.. but that does not mean they are the same place.
but thanks for the laugh.
February 09, 2022, 09:08:00 AM
Targeting crypto miners as an excuse to take advantage of increasing taxes from the miners is a stupid thing do by the government of Kazakhstan. Bitcoin is volatile how do they calculate the tax earned from miners. Logically electricity is not only used by crypto miners but by many companies as well but why is it being highlighted, its disgusting
February 09, 2022, 08:55:06 AM
After the bitcoin mining ban in China, many miners moved to Kazakhstan and mining in USA increased also, USA beome the country with the highest bitcoin mining hashrates, Kazakhstan following USA become the second country with the second highest mining hashrates. The Kazakh government has proposed taxes that can discouraged mining in Kazakhstan
What can this caused to miners in Kazakhstan, it is like some miners will have no option but to shutdown if this crypto mining taxes become effective. It is possible some miners will be able to still make profit because they are established miners already but what about new miners, this can cause new miners not to be able to make any profit and shutdown, therefore discouraging people to join crypto mining business in the country.
Quote from: https://cointelegraph.com/news/kazakhstan-proposes-power-price-hikes-and-taxes-targeting-crypto-miners
On Feb. 4, Kazakhstan’s First Vice Minister of Finance, Marat Sultangaziyev, proposed a price increase from $0.0023 per Kwh to $0.01 (around a 335% increase) specifically for crypto miners.
He also proposed a tax on each individual graphics card (GPU) and each piece of equipment needed for crypto mining. He likened the tax-per-video card to the way casinos are taxed for each table they run, whether or not the table is active.
The third part of his proposal was to remove mining hardware from an exemption on value-added tax (VAT).
He also proposed a tax on each individual graphics card (GPU) and each piece of equipment needed for crypto mining. He likened the tax-per-video card to the way casinos are taxed for each table they run, whether or not the table is active.
The third part of his proposal was to remove mining hardware from an exemption on value-added tax (VAT).
What can this caused to miners in Kazakhstan, it is like some miners will have no option but to shutdown if this crypto mining taxes become effective. It is possible some miners will be able to still make profit because they are established miners already but what about new miners, this can cause new miners not to be able to make any profit and shutdown, therefore discouraging people to join crypto mining business in the country.
https://bitcointalksearch.org/topic/interview-crypto-business-in-kazakhstan-5313966
Apytioh: "The country's highest electricity tariff is less than $ 0.05 per kilowatt. In some regions there are rates of $ 0.03-0.04"
I think that the tax in Kazakhstan was small at the beginning and should have been increased in the future.It looks very ridiculous to raise the price of electricity and still take a tax on each piece of equipment.
If you want to know what is really going on in Kazakhstan, then I can ask Apytioh for a new interview.You can post questions in this thread.
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