Spanish lawmaker sees opportunity amid Kazakhstan’s Bitcoin mining collapse

0
289

The deputy leader of the Spanish political party, Ciudadano Maria Muñoz, has proposed a bill that would make Spain a bitcoin mining hotspot after the internet shutdown that triggered a mining outbreak in Kazakhstan.

Lawyer and economist Muñoz staunchly endorsed Spain as a bitcoin (BTC) destination on Twitter on Friday:

“The protests in Kazakhstan have repercussions around the world, but also for bitcoin. We suggest that Spain position itself as a safe place to invest in cryptocurrency in order to develop a resilient, efficient and secure sector.”
A two-page open letter accompanied by a tweet addressed to the Spanish congresswoman. Muñoz first stressed the importance of the protests and the response of the government, which used the “full force of the police and army” before the government shut down the internet for Central Asia’s largest economy.

She cited a study by the Cambridge Center for Alternative Finance, where Kazakhstan ranked second in the world in terms of bitcoin mining, providing an estimated hash rate of 20% in the second half of 2021. The hash rate fell by 13.4%.

These events have raised related questions from the pro-Bitcoin lawmaker:

What information does the Spanish government have about the impact of the internet outage in Kazakhstan on the Spanish crypto-mining industry?
Will the government take steps to attract investors and miners fleeing the mining industry in Kazakhstan?
What data does the government have on energy efficiency and Bitcoin mining growth?
The Bitcoin spokesperson in question, the Ciudadanos Party, or Citizens, proposed a national crypto strategy last October. Her party aims to position Spain as a pole for investing in cryptocurrencies from the EU and around the world, and bitcoin mining could be the catalyst.

As the fluctuations in the bitcoin hash rate have repeatedly shown, the mining infrastructure is not geographically limited. China’s ban on mining, for example, was in favor of Kazakhstan and Kosovo.

Alan Konevsky, legal director of PrimeBlock, explained to Cointelegraph the changes to mining last year: “Mining companies, including those that relocated after regulatory changes in China, are set up in countries like Kazakhstan and Kosovo because the cost of electricity is much cheaper than it was in North Amarica. ”

This is evidenced by the growth of the hash rate in Kazakhstan in 2021. However, anticipating what might happen in Spain, Konevsky continues to explain:

If mining in these countries becomes a complete refusal to start, we will see the movement of miners. This industry is mobile to a certain extent, but as it develops, it requires stability, including a stable political climate and stable resources, including energy. ”
Muñoz hopes Spain will host these bitcoin-friendly factors. However, one of the biggest obstacles facing Bitcoin can be political. Her tweet sparked mockery of her opponent, Green Party member Ernst Ortasson, a member of the European Parliament.

In a tweet, he called her suggestion a “bad joke,” noting that bitcoin mining was an “environmental anomaly.” It is clear that Muñoz and her Citizens Party are out of business.

Source: CoinTelegraph

LEAVE A REPLY

Please enter your comment!
Please enter your name here