CoinDesk Podcast Network
THE MINING POD: The Rise and Fall of Bitcoin Mining in Kazakhstan w/ Didar Bekbau
Apr 15, 2025
Didar Bekbau, CEO of Xive, dives deep into the rise and fall of Bitcoin mining in Kazakhstan. Once the world’s second-largest hub, new challenges have emerged since the 2021 China mining ban. Didar discusses how outdated Soviet-era infrastructure led to power shortages and soaring taxes that forced miners to flee to Russia and the US. He also highlights the potential for Kazakhstan to reclaim its status with strategic planning and investment, as well as the ongoing impacts of geopolitical events on energy markets.
34:24
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Quick takeaways
- Kazakhstan briefly became a major Bitcoin mining hub post-China ban, but severe government restrictions and outdated infrastructure caused a significant decline.
- Future revitalization of Kazakhstan's mining sector could be possible with improved government policies and investment in modern energy infrastructure.
Deep dives
Decline of Bitcoin Mining in Kazakhstan
The Bitcoin mining industry in Kazakhstan has seen a drastic decline, with operational levels reduced to only about 10% of their former capacity. Initially, the country attracted many miners after the 2021 China ban due to its cheap electricity sourced from coal and natural gas. However, government-imposed tariffs on electricity and the growing public dissent towards miners led to many operations shutting down. The current landscape indicates that only larger mining firms with their own power sources, like Genesis Digital Assets, continue to thrive while smaller miners face dire circumstances.
