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Tax revenue from cryptocurrency mining modest but growing in Kyrgyzstan
Kyrgyzstan’s untapped hydroelectric capacity could make it a future mining powerhouse, but its progress has been slow.
The government of Kyrgyzstan collected 78.6 million soms (almost $883,000) in taxes from cryptocurrency miners in the first 11 months of 2023, according to local press reports citing the Finance Ministry. That was a dramatic rise over last year’s revenue.
Tax revenue from crypto mining was volatile in Kyrgyzstan in 2023, ranging from 738,000 soms ($8,284) in February to 11.6 million soms ($130,212) in August. In November, the last month reported, receipts were flat at 7.6 million soms ($85,767) after falling from the August high. There is only one cryptocurrency mining company now operating officially in Kyrgyzstan, although there were once many more.
Crypto mining tax revenue for the first 11 months of 2022 amounted to 11.1 million soms ($133,200). The tax rate is 10% of the cost of electricity, including value-added and sales taxes.
Kyrgyzstan has tremendous water resources in the form of glaciers, high-altitude lakes and rivers, which have an aggregate length of over 35,000 km., according to the government, but most of those resources remain highly underdeveloped. Crypto miners in the country rely on hydropower.
Kyrgyz President Sadyr Japarov approved the building of a crypto mining facility at the Kambar-Ata-2 Hydro Power Plant in July 2023. Crypto miners are charged a rate five times higher than the public in Kyrgyzstan.
Cryptocurrency production was inhibited in 2023 by the low fill level at dams and delivery limitations due to contracts with neighboring countries. Miners were forced to import power and sometimes the government was as well. Kyrgyzstan’s crypto miner had difficulties even finding imported power at times. Nonetheless, the industry had consumed 17 million KWh of electricity by the beginning of October 2023.
Energy use by crypto miners has been controversial for years. Cryptocurrency exchanges are legal in the country, but the circulation of cryptocurrency is not regulated.
*Source: Cointelegraph #Dicover 100x gems#Solana (SOL) Price History Alerts 70% Potential Upside in Next 30 Days
Solana (SOL) enthusiasts are abuzz with anticipation as historical data signals a potential surge of over 70% in the token's value over the next 30 days. If this prediction holds true, SOL could reach an impressive $173, marking its highest point in the past two years. Analyzing past trends, data from CryptoRank reveals that January has historically been a pivotal month for Solana, with average and median returns standing at 70.4% and 70.6%, respectively.Delving deeper into Solana's January performance, the cryptocurrency has a track record of exhibiting significant price fluctuations. Notably, in both 2021 and 2023, SOL experienced substantial gains of 140.2% and 182%, signaling the potential for impressive returns. However, 2022 deviated from this trend, with the token witnessing a 41.6% decrease by the end of the first month.
The question on everyone's mind remains: Will Solana achieve this remarkable milestone? The answer is uncertain, adding an air of suspense to the SOL market.One undeniable fact, however, is that Solana continues to captivate investors as an exceptionally intriguing asset within the crypto space. As the 30-day countdown begins, all eyes are on SOL, eagerly awaiting the outcome of this potentially lucrative turn of events. #Share Gate.io Annual Report 2023 to Get Exclusive Merch#Crypto Hedge Funds Experience Recovery, Optimistic for 2024 Growth
Cryptocurrency hedge funds have generated an average return of 44% this year through December 20, marking a rebound from a 52% loss in 2022, ranking as the best among 29 strategies monitored.
They have weathered a challenging 2022 and are experiencing a recovery, and many are anticipating a prosperous 2024.
Crypto Hedge Funds Recover
Pantera Capital, led by industry veteran Dan Morehead, experienced a significant rebound, with its liquid-token fund surging nearly 80% by mid-December. This comes after an 80% slump in 2022. Similarly, Chainview Capital, overseen by 31-year-old Dan Slavin, doubled its performance following an 18% decline in the previous year.
Stoka Global LP, specializing in altcoins, also achieved an impressive gain of 268% by November 30, according to founder Naveen Choudary, a former tech investment banker at Goldman Sachs Group Inc.
While the average performance of cryptocurrency hedge funds didn’t match Bitcoin’s over 150% rally this year, the positive reversal is considered uplifting news for an industry still recovering from challenges, including the collapse of FTX in the previous year. The fallout from FTX, redemptions, and banking challenges resulted in the demise of approximately one-third of all crypto hedge funds.However, despite this resurgence, the average performance still lags behind Bitcoin’s impressive gain in 2023 by approximately 120 percentage points. Moreover, the index falls short when compared to passive crypto funds, which, on average, recorded returns of around 265% in the past year.
Crypto Hedge Fund Managers Optimistic About 2024
Greg Moritz, the co-founder and COO of Alt-Tab Capital, anticipates a positive trajectory for the crypto market. He foresees a boost driven by a convergence of macroeconomic and industry-specific factors, including the stabilization of inflation, the Federal Reserve’s shift away from rate hikes, and the upcoming Bitcoin halving, expected to reduce the cryptocurrency’s supply.
Dan Slavin, the founder of Chainview Capital, expressed optimism about a potential resurgence of token mania in the crypto market, drawing parallels to the mood experienced three years ago when Bitcoin surged to record highs. As the leading token continues its upward trajectory, prospective investors increasingly engage with fund managers, and hedging strategies remain cost-effective.
Describing the year as a “dream,” Slavin plans to expand his team, transforming the existing “two-man show.” Pantera Capital’s liquid-token fund, led by Cosmo Jiang, positions itself for a bullish ride in 2024, particularly with altcoins. Historically, altcoins have during the latter stages of a market rally following Bitcoin’s ascent. 
