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Should Pakistan go for Bitcoin mining?

Dubai - If Pakistan uses surplus energy for Bitcoin mining, it can generate $35b worth of Bitcoin per year at current valuations.

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Pakistan is generating surplus electricity and should consider Bitcoin mining to reduce losses, according to a media report.

A news report published by Dawn said if Pakistan uses surplus energy for Bitcoin mining using the latest S19 Pro Antminer (assuming 10,000MW of excess energy available at a cost of $0.12 per kW/hour), it can generate $35 billion worth of Bitcoin per year at current valuations.

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"Simply put, this means we can pay off our external debt in two years," said the London-based writer Farid Khwaja, CFA.

Khawaja is also chairman of KASB Securities. He has worked in financial markets in the UK and Europe for over 17 years.

If JP Morgan's forecast of Bitcoin reaching $146,000 turns out to be true, Pakistan will make around $110 billion from this, according to the report.

The report further said Pakistan will incur no losses even if Bitcoin loses all its worth as some detractors have predicted.

"Pakistan would not be exacerbating its losses since the government is already paying for the excess energy – whether it is being used or not.

“So whatever income Pakistan is able to generate from this excess energy can perhaps be used to put the distribution network in place to eventually utilise it efficiently," the report said.

As the country is progressing well on technology front, the writer is hopeful about Bitcoin mining.

muzaffarrizvi@khaleejtimes.com

• Pakistan