Topic: Kazakhstan proposes power price hikes and taxes targeting crypto miners - page 3. (Read 531 times)
February 08, 2022, 05:47:24 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.
February 08, 2022, 05:10:50 AM
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.
Raising high tax costs, it seems that this is just a trick of politicians for the benefit of several parties who have long started mining activities.
It's possible this is a way to kill miners who are just starting out and want to get started.
February 08, 2022, 02:46:31 AM
So it seems they're not going to learn lessons from China. First you ask people to come and use your power, offer them cheap rates etc Then you ask them to pay more just because your industry is making more money?
If the tax laws already ask for more contributions from higher income bracket why should they need to target crypto?
Another Russian "invasion"?
If the tax laws already ask for more contributions from higher income bracket why should they need to target crypto?
Another Russian "invasion"?
February 08, 2022, 02:29:12 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.
Energy prices climbing everywhere in the world. Kazakhstan is not an exception. Last time I checked a barrel of oil was going for $90+ which means we are going to experience high inflation for a long time if it stays that way.
Energy prices climbing everywhere in the world. Kazakhstan is not an exception. Last time I checked a barrel of oil was going for $90+ which means we are going to experience high inflation for a long time if it stays that way.
February 08, 2022, 02:25:44 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. As for taxes, pretty sure that they might be able to lobby some politicians in Kazakhstan to hopefully help with that problem.
February 08, 2022, 02:04:43 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.
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