Kazakhstan proposes power price hikes and taxes targeting crypto miners

[Taskford]

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.

[yazher]

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.

[stompix]

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

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.

[Ararbermas]

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.

[fzkto]

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.

[davis196]

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.

[zasad@]

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

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).

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://bitcointalk.org/index.php?topic=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.

[RiskySanchez]

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

[franky1]

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

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.

[stompix]

and stompix cries because he read somewhere that they pay $0.022.. spoiler:[ in ARGENTINA]
(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.

[franky1]

and stompix cries because he read somewhere that they pay $0.022.. spoiler:[ in ARGENTINA]
(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

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.

3.4c is 38% lower then CURRENT

meaning right now they are CURRENTLY averaging 5.5cent.. hmm.. well thats more then kazahkstan CURRENTLY
which america as a whole average 7cent(for industrial asic farms)

..
i dont know why stompix wants to knit pick one example of an average to try and then fail at understanding the point that it was to do with that kazahkstan is still cheaper to mine.

because if stompix can ignore the average, and try his failed hardest to find a bottom price of possible future price ESTIMATE.. i too can find a kazahkstan bottom price NOW that beats american bottom price FUTURE ESTIMATE..

which if he read the point.. would still apply to my point, that was "its still cheaper to mine in kazahkstan than it is to mine in america"

edit to answer stompix's latest sillyness below
stompix does not understand AVERAGES in the example many posts ago.
stompix went on a rant about how prices were not 7cent (in his mind minimum) but 2.5cent -4cent minimum

stompix does not understand AVERAGES. (needed emphasis)
so is now trying his damned hardest to ignore my average example quotes so that he can play silly games of minimums
i already said the 2.5minimum he quoted(related to bitfarm argentina number) is nothing to do with america.
so now he wants to say that bitfarms is 4cent in washington

well like i just said above
if he is trying hard to find a current US minimum i can find a kazahkstan current minimum that beats US current minimum.. thus circling back to the point that its still cheaper to mine in kazahkstan

last laugh of the day

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..
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

[stompix]

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

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

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! 

[kentrolla]

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.

[darkangel11]

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.

[GreatArkansas]

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.
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.

[tbct_mt2]

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.

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

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.

[Albescent]

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.

[slaman29]

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.

[pooya87]

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).

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.

[zasad@]

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.