Kyrgyz Republic Wants To Mine Bitcoin

Another country recognizes the economic benefits of mining bitcoin. In the lates news president of Kyrgyz Republic, Sadyr Japarov has expressed support for building bitcoin and crypto mining farms at hydroelectric power plant. Kyrgyz Republic is also known as Kyrgyzstan and is a Central Asian country that used to be part of Soviet Union. Compared to its neighboring countries it is smaller in landmass and population. While it is landlocked, it borders countries like China and has good geographical location for various trade routes. The country's terrain is predominantly mountainous. Mountainous terrain is great for building hydroelectric power plants. I am not sure how much of this geographical advantage is utilized, however there is definitely great potential. It looks like Kyrgyz government is coming to realization the economic benefits of mining bitcoin and crypto.

This definitely is not the first country to embrace mining and generate some revenue by doing so. Earlier this year it was revealed that Bhutan has secretly been mining bitcoin. For more details read - Bhutan Has Been Mining Bitcoin Since 2019. Crypto mining is only one of the benefits of crypto and bitcoin for countries to consider. Obviously there are many more benefits for countries to embrace crypto technologies. But crypto mining seems to be one of the easiest ways governments can start generating revenue and reach positive economic outcomes. Geographies of various countries vary. This actually is good. This gives an opportunity for countries to explore better ways of building energy plants and be able to fund the projects and more when mining systems are integrated. This starts making even more sense when learn the reasoning why Kyrgyz government decided to get into crypto mining.

Crypto mining farms will allow the Kyrgyz government to avoid energy losses associated with non-used power from power plants. Makes perfect sense. Hydroelectric plants are already in place, and integrating mining would do any damage, instead convert lost energy into revenue. This probably is the case with many other power plants around the world. There is non-used power that is lost. Utilizing this power to mining seems smart, efficient, and profitable. Such actions may lead into building more power plants, because there are extra funds available. Of course it also depends on how this newly found revenue stream is utilized. What Kyrgyz government is planning at this stage is to do with crypto mining earnings is to give them to power engineers. They also planing to automate everything, so there aren't any additional costs for the ming operations.

Government plans always change and how they will use the money earned from miners may change as well. I believe it would depend how far are they willing to go in this endeavor, how much they will invest, and how successful they will become with mining. There definitely are some opportunities. If I were part of the decision makers, I would suggest reinvesting earnings to the same effort and keep building power plants and mining farms. If they remain true to this goal, and corruption doesn't get in the way, Kyrgyz Republic may become an example of how to mine bitcoin and crypto as a government.

It is one thing to be a private entity involved in crypto mining, and completely different being a government entity mining crypto. Governments control the land, infrastructure, laws, rules, taxes, fees, etc. Cost of getting into mining is very low for them. However, private entities have higher cost burdens in becoming crypto miners. And there is always uncertainty about how any governments they work with will treat them in the future. Same is true in Kyrgyz Republic. While the government is eager to be involved in crypto mining, they also want to increase electricity fees for private crypto miners. In fact, they want to charge crypto miners in Kyrgyzstan the highest rates available in the country. It seems they would like to capitalize on all potentials of the crypto mining.

It looks like Kyrgyz Republic has been taking positive steps towards bitcoin and crypto. Let's hope the continue in this path, take advantage of the benefits crypto can bring to their economy and citizens. I am sure this won't be the last country embracing crypto in one way or another. There will be many more taking this journey. There are many benefits of bitcoin and crypto. One of them is utilizing unique geographical locations and using renewable energy in powering bitcoin and crypto mining. Such projects can help countries build and grow their energy infrastructure and potentially lower the costs of energy for its citizens. This is the easiest thing countries can do now to take the initial steps.

I am also sure criticisms of bitcoin and crypto will continue as well. World Banks and IMFs of the world will continue showing opposition and promoting CBDCs and other alternative to fight the technological revolution. What the critics don't realize is that crypto technologies like bitcoin are not necessarily competing with traditional systems and assets. I used to think they were. But it seems to me crypto tech like bitcoin will just mind their own business, and do what they do. Success of bitcoin doesn't mean failure of fiat, gold, or banks. Traditional systems and assets fail only because of their lack of character or competence. Not because of bitcoin or other decentralized crypto. Fiats will continue to be, maybe in a different form like CBDCs, but will still exist. Fiat is tied to nation states. As long as there are nation states they will want to have their own currencies. Nothing wrong with that. It is just the traditional system is built as so the fiat loses money over time. It is one of fiat's characteristics.

Congratulations Kyrgyz people! I wish you the best in this journey and hope this journey will bring more prosperity the country and its people. Now join Hive and get one more step closer to utilizing decentralized systems.