The Giant Bitcoin Mines of Kazakhstan

Kazakhstan recently witnessed protests following surging energy costs.
The country’s biggest telecommunications provider shut down access to the internet.
Bitcoin mining hashrate fell 13.4% following the internet blackout.

Following fuel protests in Kazakhstan, the country reportedly experienced internet blackouts on January 4, leading to a nationwide communications disruption on January 5. Although the country’s presiding cabinet resigned, the internet blackout dealt a severe blow to Bitcoin mining activity.

Kazakh Bitcoin miners witness internet blackout

The Kazakhstan government removed price caps on liquefied petroleum gas used for fuel which doubled its price instantly. The sharp fuel hike sparked protests in the country, as protestors stormed into government buildings, leading to the country’s largest telecommunications provider to shut down access to the internet.

Kazakhstan currently ranks second in the world in terms of Bitcoin mining hashrate, accounting for about 18% of the network’s hash activity.

Following the shutdown of the nation’s internet, the overall BTC hashrate fell 13.4% from roughly 205,000 petahash per second to 177,330 petahash per second.

Jaran Mellerud, a researcher at Arcane Research stated that in theory, miners could mine without the internet, “but in practice, all the machines in Kazakhstan should be turned off because of the internet shutdown.”

He added that btc.com estimates that Antpool, Poolin, F2Pool and Binance Pool witnessed massive reductions in their hashrate during the time the internet was shut down in Kazakhstan. He stated that “these are the pools widely used by Kazakh miners.

Larry Cermak, the VP of Research at the Block who tweeted about the recent drop in hashrate suggested that the event is unlikely to lead to a decline in crypto prices. He highlighted that “it matters to estimate the impact of an unprecedented event like this.”

Despite recent protests, hardware manufacturer Canaan is looking to expand crypto mining operations in the country, as the company is looking to cooperate with mining firms in Kazakhstan.

Canaan recently announced that it has deployed over 10,000 AvalonMiner units in the country.

Bitcoin price slides 9%

Bitcoin price dropped 9% following the Kazakhstan internet blackout, reaching a swing low of $42,642.

The leading cryptocurrency dropped below a crucial ascending support trend line on the daily chart, and is now searching for a reliable foothold.

BTC/USDT daily chart

If Bitcoin price fails to flip the 61.8% Fibonacci retracement level at $44,078 from resistance to support, BTC could slide lower to tag the 78.6% Fibonacci retracement level at $37,388.https://www.youtube.com/embed/zDzoGac8GUo?rel=0

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Share on Twitter
Share on Facebook
Share on Linkedin

Cryptos feed

LATEST CRYPTO NEWS

Ethereum enters support zone that will see ETH return to $4,000By Jonathan Morgan | 53 minutes ago
Samsung partners with Cardano based project Veritree for its new initiativeBy Ekta Mourya | 13:35 GMT
Thailand finance ministry announces 15% capital gains tax on cryptocurrenciesBy Ekta Mourya | 11:27 GMT
Decentraland hits vital support after MANA’s 34% correctionBy FXStreet Team | 10:30 GMT
Polkadot enters buy zone before DOT breaks out to $30By FXStreet Team | 10:25 GMT
Axie Infinity to form bart pattern and jump back to $90By FXStreet Team | 10:21 GMT

EDITORS’ PICKS

Why Shiba Inu price could be on the verge of a 35% collapse

Shiba Inu price is on the verge of a significant decline if the bulls fail to claim $0.000002817 as support. Sliding below the aforementioned foothold could put a 35% descent on the radar. SHIB could fall further to discover reliable support before tagging the lower boundary of the governing technical pattern.More Shiba Inu news

MATIC price looks ready for a 15% gain as Polygon tags a crucial support level

MATIC price seems to be running on fumes and is likely to see a relief bounce after the January 5 flash crash. The drop pushed Polygon to retest a crucial support level which could catalyze a minor uptrend. A breakdown of the $2 demand barrier will invalidate the bullish thesis.More Polygon news

Bitcoin mining hashrate drops 13% following Kazakhstan internet shutdown

Crypto.com price crash triggers a bullish setup, CRO likely to rally 16%

Crypto.com price has been on a downtrend since November 24, 2021, when it set up a new all-time high. However, CRO found respite as it bounced off a crucial support level four times in less than two months, indicating the vital nature of this level. The recent downswing has pushed CRO back to this area.More Crypto.com news

	Open Live Account	Read complete Report
	Open Live Account	Read complete Report
	Open Live Account	Read complete Report
	Open Live Account	Read complete Report

Bitcoin to enjoy massive tailwinds and surpass $100,000

Bitcoin had one of its less volatile years in 2021, with a 138% variation between the highest and lowest price point. Still, the year saw its fair share of whipsaws as BTC’s price action provided more entry and exit levels for investors to profit. Read full analysis

Duchon Signs

Thursday, 13 January 2022

KAZAKHSTAN