Unfortunately all the countries in the world,that have cheap electricity are kinda hostile towards cryptocurrency mining.This isn't going to change.Even if all crypto mining switched to green energy,the governments and all the anti-crypto people will keep whining about crypto mining.
China is in the past,but there are more and more FUD news about Russia,Kazakhstan or even the United States trying to limit cryptocurrency mining.Of course,most of these FUD news are lies and manipulation.
I guess that we will have to learn to live with this constant crypto mining FUD.Most of it actually doesn't deserve our attention.
Topic: Kazakhstan proposes power price hikes and taxes targeting crypto miners - page 2. (Read 531 times)
February 09, 2022, 07:26:03 AM
February 09, 2022, 07:13:17 AM
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.
I am not sure that the government can so easily raise electricity prices after the recent events. After gas prices were doubled, massive protests and public rallies broke out in Kazakhstan, after which the entire government was sent to resign. Therefore, discontent may arise again in the country. February 09, 2022, 06:27:44 AM
Very common reason why crypto mining always getting banned in other country. 
but you know it doesn't mean when there's such news mining will be removed immediately because it depends on the situation, unless if it happens in china wherein no hesitation and always wants to shutdown mining activities.. Lol so perhaps Kazakhstan can make solution for it since they're a crypto friendly as well.
but you know it doesn't mean when there's such news mining will be removed immediately because it depends on the situation, unless if it happens in china wherein no hesitation and always wants to shutdown mining activities.. Lol so perhaps Kazakhstan can make solution for it since they're a crypto friendly as well. 
February 09, 2022, 06:25:03 AM
Just because there's price hike that targets them doesn't mean that shutting down is the only answer for them, if you don't want to pay for the electrical bills for your farm then you can just go with the alternative which is solar power although it's going to be a bit expensive to install and maintain one but the investment pays off.
It makes zero sense to run on solar without feed-in plans!
So unless you manage to strike a deal to sell extra power you make during the day and turn it into credits to run your miners at night the cost of the batteries will make you bankrupt. And without batteries, you're going to ROI by 2140.
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.
February 09, 2022, 06:08:29 AM
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.
February 09, 2022, 05:59:29 AM
So do you think they will drag all their consumers to horrible situation just to eliminate those miners? Since if you just give that thought's without proper evidence then maybe we will think about that you are just bluffing around. Maybe they have ongoing power crisis that's why they don't have a choice to implement that so for the case if miners well maybe there's no relation on such things.
February 09, 2022, 05:54:07 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.
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.
Kazakhstan and other nations will make Bitcoin legal tender, sooner or later and not only allow Bitcoin mining.
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.
Kazakhstan and other nations will make Bitcoin legal tender, sooner or later and not only allow Bitcoin mining.
February 09, 2022, 05:48:40 AM
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.
I think the ones that would be mostly affected are the new miners in the market. But the ones who are well established and are already making a huge profit from mining cryptocurrency wouldn’t really be that much affected, although it is also going to affect them a little. And if they should see a better location to move to than Kazakhstan, I believe that majority of them would start moving to that other country where things would be better for them and they wouldn’t have to be paying too much of taxes which would consume the level of profit that they are making in a month from mining cryptocurrency. February 08, 2022, 03:49:37 PM
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.
Solo miners will have no options but to shut down or to migrate the business outside of Kazakhstan. In meanwhile, i don't think this will infect big/medium companies working on this field. Seems that the worst scenarios with Kazakhstan taxation is better than the situation in other countries.Back to the last halving event, some companies who lost a great of their portion after the halving, have changed activity and even started mining other altcoins .
This may be another bottleneck for miners in those region but if they can't bear the proposed tax hike, they will for sure shut down their operations.
However, they can optimize their profits while the bill is not yet approved. And also, look for alternatives once their government enforced this bill.
Kazakhstan needs these miners to improve their economy, so they need the income coming from this industry.
Otherwise, their big miners will just move to neighboring countries that are more friendly to crypto miners, which will be a loss to their income.
February 08, 2022, 03:43:15 PM
It should be noted that taxing miners or raising their costs has no effect on Bitcoin.
It doesn't work that way. Miners have no control over prices.
Miners are indeed have nothing to do over prices yet we know that they arent the ones who do actually made out circulation and who do prices their coins on orderbooks.I'd rather believe thatIt is not the end of the world. If they raise the energy costs, miners should raise the bitcoin prices.
It doesn't work that way. Miners have no control over prices.
their options whether would really be hiding on some rabbit hole and operates or simply transfer out on other countries which does have low cost of energy but of course into those large-scale miners.
Im not surprised on how they are trying to suppress out on something that they dont like, its always been obvious.
February 08, 2022, 03:38:56 PM
Talking about Kazakhstan I've seen many people are talking about mining issues there in Kazakhstan because the government is worried about the power consumption of the miners and I guess the electricity power price was very much cheap in Kazakhstan so maybe that's the reason for the miners to start mining there and by increasing the numbers of miners we should not be surprising if the government is worry about the power consumption. But still not just about Kazakhstan but I guess many other countries will target the miner for taxes to have an extra income supply the power needed by the miners.
February 08, 2022, 02:52:14 PM
It should be noted that taxing miners or raising their costs has no effect on Bitcoin.
It doesn't work that way. Miners have no control over prices.
It is not the end of the world. If they raise the energy costs, miners should raise the bitcoin prices.
It doesn't work that way. Miners have no control over prices.
February 08, 2022, 02:46:53 PM
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.
Solo miners will have no options but to shut down or to migrate the business outside of Kazakhstan. In meanwhile, i don't think this will infect big/medium companies working on this field. Seems that the worst scenarios with Kazakhstan taxation is better than the situation in other countries.Back to the last halving event, some companies who lost a great of their portion after the halving, have changed activity and even started mining other altcoins .
February 08, 2022, 02:08:02 PM
Countries imposing sudden increase in power rates for crypto miners is directly refusing to take money from an industry trying to be legitimate and clean as possible. It's been like this for years, and I think miners from China that relocated to Kazakhstan may need to seek refuge somewhere else.
Countries like Kazakhstan have low prices for electricity simply because it's obtained from burning the oil/gas they extract and the prices are dictated (arbitrarily) by the government, not the international prices (and basically free market). The price is low for boosting the local economy.
So if they convince the miners leave, the country may have a good chance to actually earn more on long term, by selling those resources to other countries more expensive than they would sell the electricity to the miners.
I don't agree with Kazakhstan policy, but I can understand its logic (if this was it).
And the miners.. well, as long as they are focused on getting the cheapest electricity no matter how it's obtained and how doubtful is the regime of the county they conduct their business in... maybe, just maybe, they deserve this. And as said, the new price is not that big either.
February 08, 2022, 08:00:47 AM
It is not the end of the world. If they raise the energy costs, miners should raise the bitcoin prices. Problem solved. Supply and demand motherfucker.
Miners don't decide Bitcoin's price. In fact they depend on Bitcoin's price being high.
Kazakhstan doesn't have a shortage on power as far as I can remember, so this increase in rates and taxes is absurd, and is another way of telling miners to pack their bags and go somewhere else.
They had problems with their electric grid due to miners in the past. So it's pretty logical to charge more for electricity and retain the profits while selling less electricity.
February 08, 2022, 07:25:47 AM
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.
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
oh and kazahkstan people. (the customers) dont and never have paid $0.0023.
Quote
industrial residential
Kazakhstan Tenge 18.090 24.050
U.S. Dollar 0.042 0.055
Kazakhstan Tenge 18.090 24.050
U.S. Dollar 0.042 0.055
by the way
the conversion rate of 1 tenge to USD is 1tenge = 0.0023usd
funny part is
cointelegraph pulled the (0.0023-0.01) number out of their ass. without understanding what it refers to
the actual article they linked to the proposed change never mentions the numbers 0.0023-0.01
the actual article say the pre wholesale cost to power plants has a 1tenge tax inside of the 18-24 tenge retail/wholesale price
this will increase to 5tenge
February 08, 2022, 06:50:49 AM
Kazakhstan doesn't have a shortage on power as far as I can remember, so this increase in rates and taxes is absurd, and is another way of telling miners to pack their bags and go somewhere else. This proposition may be an influence of external power, but I'm not so certain because Kazakhstan tried to remain neutral for so long for its own economic advantage.
Countries imposing sudden increase in power rates for crypto miners is directly refusing to take money from an industry trying to be legitimate and clean as possible. It's been like this for years, and I think miners from China that relocated to Kazakhstan may need to seek refuge somewhere else.
Countries imposing sudden increase in power rates for crypto miners is directly refusing to take money from an industry trying to be legitimate and clean as possible. It's been like this for years, and I think miners from China that relocated to Kazakhstan may need to seek refuge somewhere else.
February 08, 2022, 06:28:20 AM
USA beome the country with the highest bitcoin mining hashrates, Kazakhstan following USA become the second country with the second highest mining hashrates.
Actually all of the stats you have seen so far on the internet about which country has how much hashrate has been completely wrong. The fact is that we don't really know how much hashrate is in each country simply because neither miners nor the mining pools release their location or their users' location.Quote
The Kazakh government has proposed taxes that can discouraged mining in Kazakhstan
They won't. If they wanted to "discourage mining" they would have banned it. They just want to get their share of the pie. They don't want to destroy the pie altogether.Quote
it is like some miners will have no option but to shutdown
Their loss is "our" gain 
February 08, 2022, 06:23:08 AM
Just because there's price hike that targets them doesn't mean that shutting down is the only answer for them, if you don't want to pay for the electrical bills for your farm then you can just go with the alternative which is solar power although it's going to be a bit expensive to install and maintain one but the investment pays off.
Heh, you presented it's like a piece of cake to just switch to solar power, its much easier said that done. Switching to solar requires huge investment, at least the one needed to power big mining farms. Add on that not so solar-friendly climate that Kazakhstan has (AFAIK). And yeah, when mining becomes more expensive that BTC they mined is worth, they do shut their rigs. It is not the end of the world. If they raise the energy costs, miners should raise the bitcoin prices. Problem solved. Supply and demand motherfucker.
Or miners move their farms someplace else, with cheaper electricity. 
February 08, 2022, 06:11:12 AM
The government of Kazakhstan wants some share of the action so they are raising the tax and imposing higher rate for power for the booming Bitcoin mining industry. And soon if the heat can becomes unbearable, of course, miners will start to be thinking of other alternatives where they can do business in a much better environment. Doing business in a place is not anymore supportive of the industry you are in can be so hard and they better come to USA or maybe even look at opportunities in El Salvador which I guess is the most friendly country for Bitcoin.
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