- Kazakhstan’s internet was cut down due to protests.
- Almost a quarter of the world’s Bitcoin miners were down.
- The hashrate of all major BTC mining pools has dropped significantly.
Kazakhstan, the world’s second-largest Bitcoin mining center, was knocked offline for over 24 hours. Protests in Kazakhstan erupted earlier this week in response to the country’s rising fuel costs. Protesters descended on government buildings, resulting in violent military and security personnel battles.
On January 6th, a statewide internet shutdown was declared due to mounting claims of government human rights breaches. Almost 15% of the world’s bitcoin mining farms have gone offline due to this outage. Although internet access has been restored in Kazakhstan, BTC mining may not fully resume until the protest situation in the nation is handled.
After China’s crackdown, bitcoin miners found a new home in Kazakhstan
China was the world’s greatest Bitcoin mining hub just a year ago, accounting for almost 46% of worldwide BTC mining at one time. However, following China’s crypto mining prohibition, Bitcoin miners relocated to Kazakhstan, nearby.
On the other hand, Bitcoin miners would soon find themselves amid civil turmoil, which culminated in yesterday’s nationwide shutdown. In the last 24 hours, there has been a severe hit to Bitcoin supply. Bitcoin prices fell below $43,000 Wednesday, the lowest level since September last year.
According to Cambridge University, Kazakhstan’s mining operations account for almost 18% of Bitcoin’s average monthly hashrate. The United States is the only country that mines more Bitcoins. Following the internet outage, all major BTC mining pools, including Antpool, Binance Pool, and F2Pool, saw a large drop in hashrate. Although yesterday’s internet outage impacted the worldwide Bitcoin mining sector, it also demonstrated that the Bitcoin network is incredibly robust. Even though many miners were unavailable, BTC trading and transactions continued unabated.
On the other hand, the crypto mining business may learn a lot from this episode. Bitcoin miners will have to be wary of political events and potential regulatory issues in the future before establishing mining operations in a certain location.