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Kazakhstan intends to collect $ 700 million to mine Bitcoin and digital currencies

 


According to reports from Kazakhstan's Ministry of Digital Development, the country is already in talks to attract significant investment of more than $ 700 million to expand the digital currency mining sector in the Central Asian country.


Kazakhstan aims to invest $ 700 million in cryptocurrency mining:

Plans were initially revealed to attract 300 billion tenge (roughly $ 715 million) in investments in cryptocurrency mining.


Oskar Chumagaliev, former minister for digital development and innovation, explained that the Kazakh government concluded that mining cryptocurrencies is part of everyday life in Kazakhstan, after studying what other countries like the United States and South Korea do, at that time, Kazakhstan already had 14 A cryptocurrency mining farm, which attracted about $ 200 million in investment in a few years.


Hence, the country is seeking to double its digital mining endeavors.


Earlier in the day, Reuters reported that the new minister, Bagdat Mossin, was already in talks to increase the massive investment to more than $ 700 million.


The new minister stated:


Today we have initial agreements to attract investments worth 300 billion tenge, and he revealed that the country is currently building four additional mining farms.

In an effort to further boost the profits of cryptocurrency mining within the nation's borders, the Asian country has also introduced plans to impose a flat 15% tax on the sector.

Will Kazakhstan enter the top 3 miners of digital currencies:

Data provided by the University of Cambridge's bitcoin mining tracker, Bitcoin Mining Map, indicates that Kazakhstan is already responsible for a large portion of the global hash rate of bitcoin.

Source: Cambridge University

The country currently ranks fourth on the list with more than 6% of the retail rate, behind all of China (65%), the United States (7.2%), and Russia (6.9%).


If the planned investment of $ 700 million in cryptocurrency mining succeeds over the next three years, Kazakhstan may indeed go uphill to crack one of the top three.


In addition, another report released earlier this year claimed that rising electricity bills in China are driving miners to seek other destinations, regardless of the United States. Kazakhstan, which has borders in the West with China, has benefited from the exodus of Chinese miners towards it.


Kazakhstan has cheap electricity, which contributed to the increase in the bitcoin hash rate from within Kazakhstan by 334% in one year.

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