Belarus Looks To Crypto Mining—A Smart Move?

Belarus is considering cryptocurrency mining as a way to make use of its excess electricity. President Aleksandr Lukashenko has instructed newly appointed Energy Minister Alexei Kushnarenko to look into the potential of mining digital assets.

During a recent meeting, Lukashenko pointed out that the country has more electricity than it needs, suggesting that crypto mining could be a productive solution.

Government Sees An Opportunity

Belarus has been open to cryptocurrency for years. In 2017, the government introduced Decree No. 8, which set up rules for blockchain technology and made crypto transactions legal. Now, with extra electricity on hand, the country is exploring mining as a way to put that power to good use and possibly bring in more revenue.

Since mining eats up a huge amount of electricity, the country’s surplus power could be a big advantage. If the plan goes through, Belarus could emerge as the next crypto mining destination, just like other places that have turned their excess energy into an opportunity.

“Look at this mining. More and more people are approaching me. If it’s profitable for us, let’s do it. We have excess electricity. Let them produce this cryptocurrency and so on,” Lukashenko said, as reported by local media outlet Belta.

BTCUSD trading at $91,153 on the daily chart: TradingView.com

Crypto Mining And Extra Energy

According to Lukashenko, Belarus has enough energy to support large-scale mining. The country’s energy sector is already strong, and mining could be a smart way to use its excess electricity instead of letting it go to waste.

Other countries have taken similar steps. Bhutan, for example, uses its hydropower capacity to support over 100 megawatts of Bitcoin mining, with plans to expand by another 500MW. If Belarus does the same thing, it could use the infrastructure it already has to get into the crypto mining business without having to pay a lot more.

Belarusian President Alexander Lukashenko. Photo credit: Ilya Pitalev/AP

“You see the direction the world is taking, especially the largest economy,” Lukashenko said, acknowledging the White House’s growing interest in digital assets. “Therefore, there’ll be a demand for them. Maybe we should do it ourselves,” Lukashenko said.

Possible Problems Ahead

There are issues which Belarus needs to think about even if it decides to go ahead with mining. The cryptocurrency market is hard to predict, and how profitable mining is based on how much Bitcoin costs and how hard the network is to run. If market conditions change, what looks like a good plan today might not work out in the long run.

There is also the question of international regulations. Some countries have cracked down on mining due to concerns about energy use and its environmental impact. While Belarus has its own energy resources, future restrictions from global regulators could create uncertainty.

Featured image from Gemini Imagen, chart from TradingView