On Wednesday, January 5th, the Kazakh government took the step of shutting down the internet nationwide. The decision was probably made so that protesters cannot communicate with each other. Previously, there were violent protests against rising fuel costs and economic problems, with civil war-like conditions prevailing in parts of the country. However, since the country is one of the most important centers for bitcoin mining, the hashrate plummeted massively due to the decision.
Kazakhstan is currently responsible for about 18% of the world’s hashrate in Bitcoin mining. The impact of the internet shutdown today caused an estimated 12% drop in the hashrate. Crypto analysts have spoken out on Twitter, releasing data that illustrates the impact of the shutdown on the mining industry.
Charts show a drop in rates for numerous mining pools. The most affected are 1THash (down 82%), OKExPool (down 46.3%), and KuCoinPool (down 22.7%).
Read more on the subject and find the latest market updates with our companion app. Born2Invest mobile application is bringing all the crypto and business news from trusted sources to a single screen so you can stay on top of the market. The application is aggregating the most important and breaking news from relevant websites, the list is always revised and updated with new resources.
After ban in China, Kazakhstan became an important center of bitcoin mining
The situation has the potential to cause a global disruption in the crypto market, as Kazakhstan is home to nearly one-fifth of the world’s bitcoin hashrate. That was estimated just last fall by the Cambridge Centre for Alternative Finance. Major pools, such as F2Pool, AntPool, and ViaBTC, also saw declines of 12.8%, 11.6%, and 19.2%, respectively.
News of Kazakhstan’s decision first broke on Wednesday. The media initially reported that there were difficulties in using mobile messaging services. But after that, Internet access was likely further restricted.
Despite the impact of the ban, the hashrate has not yet reached the level of the dramatic drop last year. At that time, China had completely banned the mining of Bitcoin and other cryptocurrencies. China’s mining industry had long been the largest and technologically dominant in the world before that.
Still, the ongoing crisis in Kazakhstan, which shows no signs of resolution, is the latest obstacle for miners who have moved to the country hoping for an easy ride after China’s crypto ban. Kazakhstan’s President Kassym-Jomart Tokayev has promised another crackdown on the protests, declaring a nationwide state of emergency.
As reported back in November, the country’s limited energy supply led to restrictions on crypto miners. This is due to the fact that bitcoin mining consumes large amounts of energy. However, efforts to grow the industry in Kazakhstan took shape, and by this month, more than 100 mining companies had been officially registered.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Why the Cannabis Industry in New York Run Into Difficulties
As per the Cannabis Growers Alliance, potential losses could reach millions in New York. While over half of U.S. states...
Winelivery Aims to Raise €3.5 Million to Expand Bar&Enoteca Line and Acquire a Media Company
Winelivery will use the capital from the collection to expand the Bar&Enoteca business line, which currently has four owned premises...
Science Finances the Development of an Infrastructure for Advanced Therapies in Spain with €45
Embedded within the Strategic Plan for Economic Recovery for Vanguard Health, this initiative is funded through the Recovery, Resilience, and...
COP28: African Leaders Call for Financing for the Continent’s Adaptation to Climate Change
Addressing the Adaptation Finance for Africa Summit African leaders emphasized the urgent need for an increase in climate adaptation finance,...
ESG Investing Is About Getting It Right Over the Long Term Without Losing Profitability
There are many aspects that condition the selection criteria in ESG investment, such as the environmental or social dimensions, without...
Business1 week ago
Vivid Seats Acquires Vegas.com in $240M Transaction — Is Restaurant.com [RDE, Inc. | OTCQB: RSTN] Next in Line?
Markets2 days ago
Gold Made a New All-Time High This Week
Business2 weeks ago
CardCash.com [RDE, Inc. | OTCQB: RSTN] Is Turning Unwanted Gift Cards Into Investor Profits — Here’s How
Fintech1 week ago
How the Fintech Sector in Mexico Developed