Kazakhstan’s Mining Sites Go Offline As Bitcoin’s Network Power Takes A Nosedive

In the face of the wide scale upheaval caused by rising protestors of  spiking fuel prices in Kazakhstan, the country’s government shut down  it’s internet this week. And conceivably, this move resulted in a major  drop in global computing power of the bitcoin network.

Last year, Kazakhstan was officially dubbed as the second largest site  for bitcoin mining after the United States, as per the Cambridge Centre  for Alternative Finance.

This, for the most part, may be attributed to the Eurasian nation’s decision to welcome the refugees recently expelled from China, leading  to the country to then face an energy crisis.

The government’s consequent countermeasures to this issue significantly  restricted the mining boom that was plaguing its cities, blurring the  picture of just how much of the coins in circulation Kazakhstan was  minting. However, on 5 January 2022, we received an estimate to this question.

With violent anti-government protests calling for civil unrest  throughout the nation, the past few days have seen the President  Kassym-Jomart Tokayev announce the resignation of the government and  declaration of a state of emergency; while even troops from a  Russian-led military alliance headed over on Jan 6 to assist in the chaos.

In the midst of this rising discontent among the population, the  government ordered that the largest telecom provider shut down the  internet on Wednesday, as a bona fide “nation-scale internet blackout”  occurred in Kazakhstan, in the words of the monitoring site Netblocks.

This shuttering of the internet prevented Kazakhstan-based miners from communicating on the Bitcoin network.

Consequently, the ‘hashrate’, which measures the computational power in  crypto mining, collapsed – told Fortune. They also reported that in  merely a couple of hours into this outage, Larry Cermak of the crypto  news and research site The Block tweeted that a full 12% of Bitcoin’s  worldwide computational power had vanished.

Yellow Star
Yellow Star

Kazakhstan’s Mining Sites Go Offline As Bitcoin’s Network Power Takes A Nosedive