March 28, 2024

Governments of entire countries are joining bitcoin mining

Governments of entire countries are joining bitcoin mining

Cryptocurrencies are becoming so attractive that they attract the attention of entire states,especially in terms of their prey. For example, the government of Kazakhstan seeks to create optimal conditions for cryptocurrency miners, while most other countries maintain a moderate position on new assets.

According to Blockstream CEO Samson Moe, bitcoin mining can be a highly viable strategic investment for governments. He wrote about this in his tweet.

Kazakhstan's decision to provide large-scalegovernment-funded bitcoin mining can rightfully be considered a complete reversal from the previous approach. Back in 2018, the country's central bank (National Bank of Kazakhstan) tried to develop a policy according to which cryptocurrencies and related activities were declared illegal in the country.

Several months later, this initiative wascanceled and replaced by a more friendly approach to cryptocurrency regulation. Then the government of Kazakhstan initiated a project in which several bitcoin mining farms were installed. About $ 190 million was allocated for the project.

Now the government is seeking funds fordevelopment of Bitcoin mining operations. The current Minister of Digital Development Bagdat Musin has announced plans to raise more than $ 700 million in BTC mining. Already, 13 mining farms are operating in the country, and 4 more are expected to be launched in the near future.

The current share of Kazakhstan in the global hashratebitcoin equals 6%, but this percentage can be expected to rise. The country has low electricity tariffs, which is why Chinese businessmen are already transferring their enterprises to Kazakhstan.

Governments of entire countries are joining bitcoin mining

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