Spanish Lawmakers See Opportunity in Kazakhstan’s Bitcoin Mining Crash
María Muñoz, a representative of Spain’s Ciudadanos political party, has proposed a bill to make Spain a bitcoin mining hotspot after the internet shutdown disrupted mining in Kazakhstan.
Attorney and Economist Muñoz staunchly supports Spain as Bitcoin (bitcoin) destination, in a tweet on Friday:
“The protests in Kazakhstan have had an impact around the world and also on Bitcoin. We recommend that Spain position itself as a safe destination for investing in cryptocurrencies in order to develop a flexible, efficient and secure industry.”
A two-page open letter was accompanied by tweets aimed at the Spanish House of Representatives. First, Muñoz stressed the importance of the protests and the government’s response “using the full force of the police and military” before the government shut down the internet and the largest Central Asian economy.
She cited the Cambridge Centre for Alternative Finance learn This makes Kazakhstan the second largest Bitcoin miner in the world, contributing an estimated 20% of the hash rate in the second half of 2021.The government’s decision to effectively remove the rug from Kazakhstan’s bitcoin miners leads to The hash rate reportedly plunged by 13.4%.
These events sparked related questions for pro-Bitcoin lawmakers:
- What information does the Spanish government have on the impact of the Kazakhstan internet blackout on the Spanish crypto mining industry?
- Will the government take steps to attract investors and miners fleeing Kazakhstan’s mining industry?
- What data does the government have on Bitcoin energy efficiency and the development of the mining industry?
A proven Bitcoin network proponent, her party Ciudadanos, or “Citizens,” proposes a national strategy for cryptocurrencies October last year. Her party is trying to position Spain as a pole for the EU and the world to invest in cryptocurrencies — and bitcoin mining could be the catalyst.
As Bitcoin hash rate fluctuations have shown time and time again, mining infrastructure is not geographically restricted. China’s mining ban, for example, to Kazakhstan’s interests and Kosovo.
Alan Konevsky, chief legal officer at PrimeBlock, explained last year’s mining changes to Cointelegraph: “Mining companies, including those that relocated following regulatory changes in China, set up in countries like Kazakhstan and Kosovo because electricity costs are much cheaper than in North America.”
This is shown in Kazakhstan hash rate growth in 2021. However, as a hunch about what might happen in Spain, Koniewski went on to explain:
“If the mining industry fails to start at all in these countries, we may see miners relocate. The industry is fluid to some extent – ??but as it matures, it needs stability, including a stable political climate and stable inputs, including energy.”
Muñoz wants Spain to have these Bitcoin-friendly factors. However, one of the biggest resistances for BTC could be political. Her tweet drew ridicule from rival Green Party member Ernest Hurtasson, MEP.
Label her proposal a ‘bad joke’ tweet, he said BTC mining is “an environmental anomaly.” Muñoz and her Civic Party have clearly done their job.