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If mining is profitable that means electricity is costing less than the proceeds of mining. If these miners are Kazakhstani, presumably they are spending the ma
by fastball 5y ago
If mining is profitable that means electricity is costing less than the proceeds of mining. If these miners are Kazakhstani, presumably they are spending the majority of these gains in-country, or are paying taxes on the proceeds. As such this should be a net gain for Kazakhstan, since I assume the majority of people buying the crypto the miners are generating are not in fact Kazakhstani.
This doesn't seem complicated tbh and I'm actually struggling to understand why you wouldn't get this if you generally understand net imports/exports.
- duxup 5y agoI understand the imports and exports for goods that employ people create services and etc. Coin mining doesn't fit / necessarily that pattern at all. In the meantime they have power shortages so I'm not sure at all what you're thinking about here... your idea of cheap power is pretty meaningless when there's a shortage.
- pjc50 5y ago> If these miners are Kazakhstani Article implies a lot have moved from China. > presumably they are spending the majority of these gains in-country Unevidenced assumption, that they are even spending the gains at all - it's crypto, after all. > or are paying taxes on the proceeds Unevidenced assumption, probably false for crypto libertarians.
- AlexandrB 5y agoThis is my sarcastic answer of "trickle-down economics" just with more hand-wavy elaboration on how that might work. Amazing!
- fastball 5y agoTrickle-down economics is different.