Spanish lawmaker sees opportunity amid Kazakhstan’s Bitcoin mining collapse

by Gordon James

As Bitcoin mining in Kazakhstan continues to decline, Spanish lawmaker calls for country’s crypto sector to open new markets.

The “btc hashrate kazakhstan” is a cryptocurrency that has been in decline due to the collapse of a major mining operation. This opportunity for Spanish lawmakers could be seen as a way to create new jobs and gain an advantage over their European competition.

Spanish lawmaker sees opportunity amid Kazakhstan’s Bitcoin mining collapse

 

Following the internet disruption that caused a mining outage in Kazakhstan, Mara Muoz, a Deputy for the Spanish Ciudadanos political party, has proposed a measure to make Spain a Bitcoin mining hotspot.

In a tweet on Friday, lawyer and economist Muoz reaffirmed her support for Spain as a Bitcoin (BTC) destination: 

“The demonstrations in Kazakhstan have ramifications all around the globe, including for Bitcoin.” To establish a flexible, efficient, and secure industry, we advise that Spain presents itself as a safe destination for cryptocurrency investments.”

The tweet was followed by a two-page open letter addressed to the Spanish Congress of Deputies. First, Muoz emphasized the importance of the demonstrations and the government’s reaction, which included “all the power of the police and army,” before the government shut down the internet in Central Asia’s biggest economy.

According to a Cambridge Centre for Alternative Finance report, Kazakhstan is the world’s second-largest Bitcoin miner, accounting for almost 20% of the hash rate in the second half of 2021. Kazakhstan’s Bitcoin miners saw their hash rate drop by 13.4% as a result of the government’s move to practically pull the rug out from under them.

These incidents prompted the pro-Bitcoin legislator to ask the following questions:

  1. What information does the Spanish government have on the effect of the internet shutdown in Kazakhstan on the crypto mining business in Spain?
  2. Will the government take steps to entice investors and miners who are leaving Kazakhstan’s mining industry?
  3. What information does the government have about Bitcoin’s energy efficiency and the mining industry’s growth?

Her party, Ciudadanos, or “Citizens,” has long been a supporter of the Bitcoin network, and in October of last year, she presented a national policy on cryptocurrencies. Her party wants to make Spain a hub for cryptocurrency investments from across the EU and the rest of the globe, and Bitcoin mining might be the impetus.

Mining infrastructure is not geographically confined, as Bitcoin hash rate changes have often shown. Kazakhstan and Kosovo, for example, benefited from China’s mining prohibition.

“Mining firms, including those who migrated following the China regulatory reforms, set up shop in countries like Kazakhstan and Kosovo since the cost of power is significantly lower than in North America,” Alan Konevsky, chief legal officer at PrimeBlock, told Cointelegraph last year.

Kazakhstan’s rising hash rate in 2021 demonstrated this. However, in a foreshadowing of what would happen in Spain, Konevsky goes on to say:

“If mining becomes unprofitable in certain nations, miners may be forced to move.” To some extent, this business is mobile; yet, as it grows, it needs stability, which includes a stable political atmosphere and reliable inputs, such as energy.”

Muoz is hoping that Spain would embrace these Bitcoin-friendly characteristics. However, political uncertainty may be one of BTC’s greatest challenges. Ernest Urtasun, a member of the European Parliament from the Green Party, mocked her message. 

In a tweet, he called her plan a “poor joke” and claimed BTC mining is “an environmental aberration.” Muoz and the Citizens Party have their work cut out for them.

Bitcoin mining is a process that uses computing power to solve mathematical problems and create new Bitcoins. The more computational work, the harder it becomes to mine Bitcoins. In Kazakhstan, the government has decided to shut down Bitcoin mining operations due to concerns about electricity consumption. Reference: btc hashrate by country.

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