Crypto mining reportedly has the potential to reel in $1.5 billion in profit for the nation of Kazakhstan within the next half decade. 

Specifically, as revealed via a report generated by the Data Center Industry & Blockchain Association of Kazakhstan corporate digital currency mining activities generate an approximate amount of 98 billion tenge ($230 million) yearly in the nation. 

The figure of 98 billion tenge is just an economic effect from companies that are officially involved in mining. If we take into account the “gray” miners, then this figure can be safely multiplied by 2.” Alan Dordzhiev, the president of the NABDC, further remarked via a statement. 

In context, “gray miners” is a definition to call people carrying forth their own crypto mining operations – normally with disputed legal status. The association urges for the appearance of enhanced regulation, to fight against illegal mining to prevent a possible electricity shortage.

Grey area miners reportedly have an approximate consumption of 500 MW of electricity in the nation, with estimation conducted by Dordzhiev. 

In October, Kazakhstan’s Department of Energy came up with a proposal of a draft order aimed at placing limits on the sum of electricity consumed by the crypto mining sphere.

Per insights from The University of Cambridge, Kazakhstan reportedly took up a proportion of 18.10% of the Bitcoin (BTC) mining hash rate across the globe – standing in the second spot in world ranking – after China began cracking down on mining activity.

The above figures reportedly mean it only ranks after 35.40% hash rate share for the U.S, and standing higher than Russia’s 11.23%. 

According to the numbers from GlobalPetrolPrices, the average cost of commercial-use electricity in Kazakhstan is $0.054 per kWh, well below the global average of $0.124 per kWh — due to the country’s enormous fossil fuel reserves.