The Kazakhstan Mining Exodus Has Flipped Bitcoin To Clean-Energy Dominance
This would’ve been quite the unfathomable thought about six months ago, but things have taken a dramatic shift in the climate of Bitcoin mining in recent weeks.
They said it couldn’t be done, but it appears that something almost miraculous has happened – what was once a mining landscape dominated by coal-powered Central Asian operations has been catapulted into one powered almost entirely by renewable energy!
Yes, you could call it a Kazakhstan mining exodus in more ways than one.
What Brought About the Change?
The exodus of Bitcoin miners from Kazakhstan earlier this year was a major contributing factor. What prompted the shift was a government-initiated power hike that saw electricity prices in some regions jump from the equivalent of $0.04 per kilowatt-hour to around $0.13. With this significant increase in power costs, some of the less profitable operations were forced to close down and find alternative locations.
The Winners and Losers
The crossover between energy-hungry mining operations and renewable energy resources was a match made in heaven! Thanks to the exodus of some of Kazakhstan’s noisy, dirtiness, clean energy sources in places like the United States, Canada and Europe were better able to handle the additional strain.
The losers in this equation were clear and the winners became just as apparent. Here’s a quick rundown of the facts:
- Kazakhstan miners paid the price for the dramatic spike in power costs.
- Clean energy sources saw a huge increase in demand from global miners.
- Low-cost electricity resources like hydropower, geothermal and wind saw a significant jump in value.
- Bitcoin is rocketing towards clean-energy dominance.
An Unexpected Shift
The results of the Kazakhstan mining exodus have surprised many. Just a short few years ago, Kazakhstan and its coal-fired operations were top of the line in the Bitcoin world. They managed to dominate the hash rate and even distant miners felt a little jealous of their seemingly miraculous setup.
But now, greener pastures prevails. The dynamics of the Bitcoin mining arena have shifted considerably, but if the current trajectory is maintained, it could very well be the energy turning point that many have been hoping for.
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