• Kazakhstan was once the world’s second-largest Bitcoin mining nation, but within a year capitulated due to pressure from Kazakh authorities.
• This resulted in a higher clean energy mix for the Bitcoin network: at its peak Kazakhstan represented 18.3% of global hash rate, and now represents max 6.4%.
• This shift has resulted in a 10% reduction in emissions – one of only few industries to achieve this within a year.
Kazakhstan’s Impact on Bitcoin Mining
Kazakhstan was once the world’s second-largest Bitcoin mining nation, and at its height accounted for 18.3% of global hash rate. However, after pressure from Kazakh authorities, their percentage of global hash rate fell to 13.2%, and then further down to 6.4%. This shift has had an unexpected positive effect on Bitcoin’s clean energy mix, resulting in a 10% reduction in emissions – one of only few industries to achieve this within a year.
Pressure from Kazakh Authorities
The pressure on miners from Kazakh authorities came in three waves: firstly, equipment from 13 illegal mining farms were seized; secondly, assets were seized from 106 remaining known illegal mining operations; finally, regulated curtailment of mining meant that it could only legally occur during certain hours (midnight to 8:00am and weekends), reducing weekly hours from 168 to 64.
Clean Energy Mix
If Kazakhstan had remained at 18.3% of total hash rate then Bitcoin emissions would’ve been 36 metric tons of carbon dioxide equivalent C(MTCO2e). But because they are now at 6.4%, emissions are reduced to 32.4 MtCO2e – representing a 10% decrease overall.
Impact on Environment
This shift away from fossil fuels has had an important impact on the environment – as coal is much heavier greenhouse-gas emitter than natural gas, the difference is even more significant when considering emission levels pre- and post-Kazakh exodus from Bitcoin mining operations..
Conclusion
Overall, Kazakhstan’s decision to reduce their involvement with Bitcoin mining has led to unexpected environmental benefits – particularly with regards to emissions reductions which stand at 10%. This is an impressive feat achieved by few other industries over such short period of time – and reinforces how important it is for nations worldwide take responsibility for their part in greening the planet