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The measures taken by the authorities to quell large-scale protests in Kazakhstan, a mining hotspot, are affecting the cryptocurrency market and the hash rate of the Bitcoin network. In response to civil unrest caused by rising fuel prices and economic deterioration, the government restricted Internet access and closed local banks. As some people have left the country and the country is also facing power shortages, there is growing concern that the unrest may trigger another large-scale migration of miners.
Protests broke out in major Russian cities and the government took the country offline
After the government lifted the price ceiling on natural gas and other fuels, thousands of Kazakhs took to the streets this week to express their anger at the country’s socio-economic conditions. Protests erupted in Almaty, the country’s largest city, the capital Nur-Sultan, and Mangisto Province in the west. The authorities have implemented a state of emergency.
According to official media reports, during the demonstrations, government offices were attacked and shots were fired. Protesters and law enforcement officials were killed and more than 1,000 citizens were injured. On January 5, President Kassim-Zomaart Tokayev disbanded the government and blamed the ministers for the possible loss of control. After Tokayev faced the “threat of terrorism” and sought help from its allies, Russia has dispatched “peacekeeping” troops.
New video from Kazakhstan.
Almaty. #Kazakhstan #Nazarbayev # ?????? pic.twitter.com/jn9aba2J6t
-World Protest (@worldprotest_tg) January 4, 2022
Kazakhstan has been largely offline for the past few days, and the interruption has also affected phone connections. The monitoring organization Netblocks revealed on Wednesday that the country is in a state of internet disruption. On Thursday, the state-run Khabar 24 TV news channel confirmed that because users cannot access social media platforms and messaging applications, access to the World Wide Web is restricted.
At the same time, the Russian Interfax News Agency quoted the representative of the National Bank of Kazakhstan as saying that all bank offices in the country have been closed. The official Olzhas Ramazanov explained that the regulator made this decision after “taking into account the temporary Internet interruption and protecting the health and lives of employees of financial institutions and consumers of financial services”.
Unrest in Kazakhstan hits the crypto market, Bitcoin hash rate
The rapidly developing events in Kazakhstan have affected the cryptocurrency market and price Bitcoin (Bitcoin) Fell below the $44,000 mark on Wednesday, when the crypto economy shrank by about 4.5% to $2.25 trillion, as Bitcoin.com News ReportAt the time of writing this article on Thursday, the largest cryptocurrency by market capitalization is trading at less than $43,000 per coin.
exist Suppress In the cryptocurrency mining launched by the Chinese government in May, due to the electricity price ceiling and the generally positive attitude towards the industry, Kazakhstan has become a magnet for companies participating in digital currency minting.National average monthly computing power share Over 18% last year, Central Asian countries became major countries Mining hotspots.
The new year began on January 1 at a rate of nearly 229 exahashes (EH/s) per second. Earlier this week, the average hash rate of the Bitcoin network fell below 170.It currently Standing At the time of writing, the speed is 167.86 EH/s. Members of the crypto community expressed concern that the further deterioration of the situation in Kazakhstan may have a greater impact on this indicator, as miners may begin to move to jurisdictions with more stable political environments and power supply.
Although Kazakhstan initially welcomed Mining Company And have taken measures adjust The department, the authorities have blame The country’s growing power shortage Influx Mining company. In the first three quarters of 2021, the electricity deficit exceeds 7%, and the energy supply has been interrupted. Forced to Some companies close crypto farms and transfer equipment to other mining destinations, such as the United States
Do you think that in 2022, due to events in Kazakhstan, the cryptocurrency world will witness another large-scale migration of miners? Share your expectations in the comments section below.
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