In Kazakhstan miners introduced increased tariffs for electricity

Now it will be even more difficult for miners in Kazakhstan to live. Not only has the flagship cryptocurrency sank 70%+ over the past year, but now they will be giving away a lot more money for the energy consumption they spend on mining bitcoin and other crypto assets.

From the beginning of the year, electricity bills will be charged on a progressive scale. This means that the surcharge of 1 Kazakhstani tenge (~$0.002) per kilowatt-hour, which was adopted in the summer of 2021, can now reach 25 tenge ($0.05). Thus, miners will pay an increased rate for electricity, which will be the sum of the regular rate + $0.05 per kilowatt-hour (after the progressive scale is reached to the maximum).

The flexible tariff setting system was signed by President Kassym-Jomart Tokayev in June 2022. The system cannot be called universal for all residents. The cost of electricity consumption depends on which source the miner uses to mine cryptocurrencies and electricity prices in each region.

The authorities of Kazakhstan are looking positively towards renewable electricity and improving the environment. Such behavior on the part of crypto miners will be rewarded by obtaining the lowest energy consumption rate. At the same time, this "bonus" has its downsides.

The lower the power consumption, the more the consumption tax will increase. At the same time, cryptocurrency miners most likely do not have to worry about this, since there cannot be such a low consumption of electricity in activities.

Kazakhstan has faced problems with electricity after the Chinese authorities banned the mining process. As a result, many local miners changed their location to the country closest to them, Kazakhstan, where they were again able to realize themselves and continue their cryptocurrency mining activities.

Such a sharp mass move of miners obviously caused a lot of indignation on the part of people. They rightly point out that with the arrival of Chinese digital gold miners, the shortage of electricity in the country began to grow and the authorities began to pass laws that could take more money from miners, but at the same time did not affect ordinary people.