Kazakhstan deals a serious blow to miners: the country has interruptions in electricity and Internet

Казахстан наносит серьезный удар майнерам: в стране отключили интернет, добыча биткоинов остановилась

  • The bitcoin rate fell by 6.6% per day
  • The protests in Kazakhstan played a role here
  • The government is turning off the lights en masse, so mining companies are suffering

Kazakhstan has become one of the leading countries in production bitcoins. It accounts for 22, 20% of the network hashrate. Now the country has turned off the Internet, and it hurt the crypto market.

NetBlocks network data provider announced that Kazakhstan is “at the epicenter of a nationwide Internet shutdown.” In the beginning, there were interruptions with mobile Internet and partial restrictions all day. But by nightfall, the whole country was in lockdown.

By application company, “this incident could seriously limit the possibilities of mining.”

Cloud computing platform Bitfufu also complains about a problem in Kazakhstan – and not only the Internet suffers, but also electricity. When a country turns off the lights for an hour, the mining center stops working for a longer time because the equipment needs to recover.

Bitfufu, a cloud computing platform of Bitmain: Affected by the situation in Kazakhstan, power, and network are affected to varying degrees. For electrical power off, if the electricity off for 1 hour, your mining service running time will be postponed for an additional 1 hour.

– Wu Blockchain (@WuBlockchain) January 6, 2022

The drop in the hash rate is clearly visible on the chart. Many mining companies fell victim to blackouts – AntPool, Poolin, F2pool, ViaBTC:

Due to protests in Kazakhstan and nationwide network disconnection, the hashrate of Bitcoin mining pools such as AntPool, Poolin, F2pool, ViaBTC, etc. all plummeted on January 5. Kazakhstan accounts for about 20% of the global Bitcoin hashrate. https://t.co/VjtWgD9Hsp pic.twitter.com/pn7IwF3lP6

— Wu Blockchain (@WuBlockchain) January 6, 2022

Why is this important for the cryptocurrency industry?

Kazakhstan is one of the leading countries in the extraction of BTC.

Data from the Cambridge Index bitcoin electricity consumption show that it is the second country in this respect after the USA. The energy lockout became one of the reasons for the sharp drop in the MTC rate on the night of January 5-6.

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