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Kazakhstan to restrict crypto miners amid power shortages

eurasianet.org

11–20 of 361 posts

Re: Kazakhstan to restrict crypto miners amid power shortages

#11

Earlier quoted context omitted.

No. Role of government is to provide minimum standard of living for general population. A lot of people will freeze in Kaza, as basic necessities are a huge part of their monthly budget and price hike is too severe to handle. "Let market sort itself" only works if government thinks about it in advance, have fair elections, low corruption, etc. Cost of natural gas / coal / oil is going up significantly and is a huge p…

This is such a bizarre comment given the history of price controls and their horrendous outcomes.

Price controls on utilities in the US are extremely common and successful. There are good ways to implement price controls and there are bad ways. Also, there are just as many examples of bad outcomes when you treat markets which are inherently unfree (i.e utilites, where infrastructure is typically monopolized) as free markets.

Re: Kazakhstan to restrict crypto miners amid power shortages

#13

Wouldn't it make more sense to just let the price of electricity go up?

Maybe it would make more sense to you, but not to most people I think. Electricity has much better uses than cryptocurrency.

Of course it does. It also has better uses than say gaming, so if that is the logic maybe that should be banned, too.

Re: Kazakhstan to restrict crypto miners amid power shortages

#14
post #9

Wouldn't it make more sense to just let the price of electricity go up?

That makes everyone else in the country worse off.

If mining is a net positive for Kazakhstani miners, doesn't that make the country better off? That's a net export.

Re: Kazakhstan to restrict crypto miners amid power shortages

#16

Wouldn't it make more sense to just let the price of electricity go up?

As far as I can tell cryptocurrency's value comes from how much it costs to mine the currency. So that would just affect everyone who isn't mining currency since the miners just offset their costs by selling.

Re: Kazakhstan to restrict crypto miners amid power shortages

#17
post #3

Wouldn't it make more sense to just let the price of electricity go up?

Only if you want miners to have power and residents to be without it. Capitalism is not the cookie cutter solution to all problems.

Right but that's not the problem here? If there are power shortages then the power companies should increase supply.

Re: Kazakhstan to restrict crypto miners amid power shortages

#19

Wouldn't it make more sense to just let the price of electricity go up?

As far as I can tell cryptocurrency's value comes from how much it costs to mine the currency. So that would just affect everyone who isn't mining currency since the miners just offset their costs by selling.

But cryptocurrency can be mined anywhere, not just in Kazakhstan. If only Kazakhstan raises their electricity prices, then the price of the cryptocurrency will basically stay the same, but mining will naturally move elsewhere.

Re: Kazakhstan to restrict crypto miners amid power shortages

#20

Wouldn't it make more sense to just let the price of electricity go up?

No. Role of government is to provide minimum standard of living for general population. A lot of people will freeze in Kaza, as basic necessities are a huge part of their monthly budget and price hike is too severe to handle. "Let market sort itself" only works if government thinks about it in advance, have fair elections, low corruption, etc. Cost of natural gas / coal / oil is going up significantly and is a huge p…

Almost all residential heating in big cities in Kazakhstan comes from cogeneration.

They would've gone bankrupt if they didn't do it with their weather (-40<C°)

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