Victor Ugochukwu · Dec 14, 2020 . 5min read
Bitcoin Mining: a Strategic Investment for Nations, says Samson Mow
As Kazakhstan is expanding its Bitoin mining, Samson Mow states Bitcoin mining is a viable strategic investment for governments.
By Komal Joshi · Sep 6, 2020 . 6min read
Cryptocurrencies are now trending amongst banks, countries, and states. Cryptocurrency mining has, however, received a mixed response among most governments. Speaking about crypto mining, Kazakhstan’s government is a prime example of it. It is now a significant cryptocurrency miner, which confounds many contemplating that most other governments have decided to take small steps. However, one of Kazakhstan’s main reasons stands out in Bitcoin mining is its easy access to very cheap electricity from its coal reserves.
Samson Mow, CEO of Blockstream, says Bitcoin mining could be a very viable strategic investment for governments. He shared a tweet commenting on it. Samson Mow is a Bitcoin expert and is often invited to various blockchain gatherings, events, and conferences, where he, for instance, famously debated Roger Ver about Bitcoin scaling. Mow is also a famous author for various financial and cryptocurrency-related magazines.
#Bitcoin mining will become a strategic investment sector for many nation states. Slowly at first, and then all at once.Samson Mow, CEO of Blockstream
Kazakhstan’s Contrasting Decision About Cryptocurrencies
Kazakhstan’s determination to step into large-scale, government-funded Bitcoin mining is a complete change from its previous cryptocurrencies approach. In 2018, the country’s central bank attempted to draft a policy to make cryptocurrencies and their associated activities illegal.
However, a few months later, the policy was repealed and replaced with a friendlier approach to regulating cryptocurrencies. Then the Kazakh government started a project that saw several Bitcoin mining farms installed.
Kazakhstan plans to attract investments worth 300 billion tenges ($714 million) into the cryptocurrency sector, Digital Development Minister Bagdat Mussin said. Kazakhstan accounts for 6% of global cryptocurrency mining. In June, the country passed legal amendments, clarifying the regulation and taxation of cryptocurrency mining that it anticipates will promote its oil-dominated economy, providing relatively cheap electric power for the energy-hungry business. Thirteen mining farms are already functioning in the Central Asian nation, and four are under construction. However, the country still lags behind other more comprehensive mining regions like China, the United States, and Russia.
Earlier, Kazakhstan’s federal government imposed a 15% flat-rate tax on Crypto mining. The proposition intends to utilize any funds raised through the tax to manage the nation’s COVID-19 emergency. The Ministry of Economy requires combating the Covid-19 pandemic impact on the nation’s economy. It plans to accomplish this by the collection of such taxes.
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