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.
February 09, 2022, 07:26:03 AM
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.
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.
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.
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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