Spanish lawmaker sees opportunity amid Kazakhstan’s Bitcoin mining collapse

Deputy
for
the
Spanish
Ciudadanos
political
party
María
Muñoz
has
proposed
a
bill
to
make
Spain
a
Bitcoin
mining
hotspot
following
the
internet
shutdown
that
caused
a
mining
outage
in
Kazakhstan.

The
lawyer
and
economist
Muñoz

was

steadfast
in
her
support
of
Spain
as
a
Bitcoin
(BTC)
destination,
in
a
tweet
on
Friday: 

“The
protests
in
Kazakhstan
have
repercussions
all
around
the
world
but
also
for
Bitcoin.
We
propose
that
Spain
positions
itself
as
a
safe
destination
for
investments
in
cryptocurrencies
to
develop
a
flexible,
efficient
and
safe
sector.”

A
two-page
open
letter
accompanied
the
tweet
directed
at
the
Spanish
Congress
of
Deputies.
First,
Muñoz
highlighted
the
significance
of
the
protests
and
the
government’s
response,
which
used
“all
the
strength
of
the
police
and
the
army,”
before
the
government
switched
off
the
internet
to
the
largest
Central
Asian
economy.

She

cited

a
Cambridge
Centre
for
Alternative
Finance
study
that
put
Kazakhstan
as
the
second-largest
Bitcoin
miner
worldwide,
contributing
an
estimated
20%
of
the
hash
rate
in
the
second
half
of
2021.
The
government’s
decision
to
effectively
pull
the
rug
out
from
under
Kazakhstan’s
Bitcoin
miners
caused

the
hash
rate
to
plummet
a
reported
13.4%.

These
events
inspired
pertinent
questions
for
the
pro-Bitcoin
lawmaker:

  1. What
    information
    does
    the
    Spanish
    government
    have
    on
    the
    impact
    of
    the
    Kazakhstan
    internet
    blackout
    on
    the
    Spanish
    crypto
    mining
    industry?
  2. Will
    the
    government
    take
    measures
    to
    attract
    investors
    and
    miners
    fleeing
    the
    Kazakhstan
    mining
    industry?
  3. What
    data
    does
    the
    government
    have
    regarding
    the
    energy
    efficiency
    of
    Bitcoin
    and
    the
    growth
    of
    the
    mining
    industry?

A
proven
proponent
for
the
Bitcoin
network,
her
party
Ciudadanos,
or
“Citizens,”

proposed

a
national
strategy
on
cryptocurrencies
in
October
last
year.
Her
party
seeks
to
position
Spain
as
a
pole
for
investments
into
cryptocurrencies
from
the
European
Union
and
the
world

and
Bitcoin
mining
could
be
the
catalyst.

As
Bitcoin
hash
rate
fluctuations
have
shown
time
and
again,
mining
infrastructure
is
not
geographically
restricted.

China’s
mining
ban
,
for
example,
was
to

the
benefit
of
Kazakhstan

and
Kosovo.

Alan
Konevsky,
chief
legal
officer
at
PrimeBlock,
explained
last
year’s
mining
changes
to
Cointelegraph:
“Mining
companies
including
those
that
relocated
after
the
China
regulatory
changes,
set
up
in
countries
like
Kazakhstan
and
Kosovo
because
the
cost
of
electricity
is
much
cheaper
than
in
North
America.”

This
was
shown
in

Kazakhstan’s
growing
hash
rate
in
2021
. However,
in
a
premonition
to
what
could
take
place
in
Spain,
Konevsky
goes
on
to
explain:

“If
mining
becomes
a
complete
non-starter
in
these
countries,
we
could
see
miners
relocate.
This
industry
is
mobile,
to
a
point

but
as
it
matures
it
requires
stability,
including
stable
political
climate
and
stable
inputs,
including
energy.”

Muñoz
hopes
that
Spain
harbors
these
Bitcoin-friendly
factors.
However,
one
of
BTC’s
biggest
headwinds
may
be
political.
Her
tweet
inspired
ridicule
from
rival
Green
party
member
Ernest
Urtasun,
a
European
Parliament
member. 


Labeling

her
proposal
a
“bad
joke”
in
a
tweet,
he
said
BTC
mining
is
“an
environmental
aberration.”
Muñoz
and
her
Citizens
party
clearly
have
their
work
cut
out.

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