Are Bitcoin miners migrating from China to Central Asia?

Plenty of coal, natural gas, cheap electricity and a sparsely populated and huge area make the countries of Central Asia a perfect location for bitcoin mining.

Compared to the thermal energy cost of over $ 0.06 per kilowatt hour in China, average electricity tariffs of $ 0.03 per kilowatt hour are becoming more attractive to Chinese miners in some Central Asian countries such as Kazakhstan and Uzbekistan.

Likewise, countries like Uzbekistan, which offer an increasingly open policy of crypto mining and trading, seem to be increasingly legalizing and even promoting mining. Wu Zheng, one of the first Bitcoin miners to go overseas, has kept an eye on Kazakhstan, where thermal electricity is plentiful and cheap.

 

“The costs for mining are mainly composed of machine costs, electricity tariffs, rents for the mining sites, operation and maintenance – the costs for machines and electricity take up the largest part”,

said Wu Zheng.

 

“The cost of the hardware is basically fixed. The biggest variable is the cost of electricity. In this sense, finding cheap electricity is the best way to increase profitability. Take the latest Antminer S17 pro, for example $ 0.06 / kWh could make an S17 a $ 5.41 daily gain, while $ 0.03 / kWh power could produce the same machine $ 6.83 a day. “

Wu said his company uses the latest and most powerful miners in China, but has moved older models like the S9, E10, and M3 to countries with cheaper electricity.hat.