Kazakhstan Shuts Down Banks, Internet Amid Unrest That Threatens Bitcoin Mining, Hashrate – Mining Bitcoin News

The Bitcoin network hashrate and cryptocurrency markets are being affected by measures imposed in order to end mass protests in Kazakhstan, a mining hotspot. In order to address civil unrest due to rising fuel prices, a weakening economy and other factors, authorities closed off access the internet and shut down banks in the area. As some miners are leaving, fears are mounting that another wave of migration could be triggered by the current turmoil.

Russia Sends Troops, Government Shuts Down Country

Tens of thousands of Kazakhstanis protested the removal of a price cap for natural gas and other fuels by the government this week. Protests erupted in the country’s largest city, Almaty, the capital Nur-Sultan, and in the western Mangistau province. Authorities declared an emergency.

According to official media, more than 1,000 citizens were hurt during protests that saw police and protesters clash with each other. January 5th, President Kassym Jomart Tokayev resigned from the government and blamed ministers for the spiraling out of control situation. Russia has already sent “peace keeping” troops after Tokaev asked the allied country for help in the face of a “terrorist threat.”

In the last few days Kazakhstan was largely offline, and phone lines were also disrupted. On Wednesday, Netblocks, a monitoring organization, revealed that Kazakhstan is experiencing an internet blackout. The state-run Khabar 24 TV News channel said Thursday that users are unable to access social media sites and messaging apps due to restrictions to their internet access.

According to an official of the National Bank of Kazakhstan, who was quoted by Interfax, all national bank offices have been shut down. The official, Olzhas Ramazanov, explained that the regulator has made the decision after “taking into account temporary internet interruptions as well as to protect the health and life of employees of financial institutions and consumers of financial services.”

Bitcoin Hashrate and Kazakhstan’s Unrest are Hit By Crypto Markets

According to Bitcoin.com News, the rapidly evolving events in Kazakhstan had an impact on cryptocurrency markets. On Wednesday, the bitcoin price fell below $44K as the currency’s value shrank by 4.5% to $2.25 Trillion. At the time of writing, Thursday’s price for the cryptocurrency with the highest market capitalization was under $43,000.

The Chinese government launched a crackdown against crypto mining in May. Kazakhstan was a hot spot for those involved in digital currency minting due to its low electricity prices and positive attitude. The country’s average monthly hashrate share exceeded 18% last year, with the Central Asian country turning into a major mining hotspot.

Kazakhstan Shuts Down Banks, Internet Amid Unrest That Threatens Bitcoin Mining, Hashrate
Source: Coinwarz

The new year began at nearly 229 exahashes per minute (EH/s), on January 1. However, the average hashrate for the Bitcoin network dropped below 170 this week. As of the writing date, it is currently at 167.86 EH/s. The crypto community has expressed concern that the indicator may be even worsened by the possibility of miners moving to more stable jurisdictions and a better power supply.

While Kazakhstan initially welcomed mining companies and has taken steps to regulate the sector, authorities have blamed the country’s growing problems with electricity shortages on the influx of mining companies. In the three-quarters of 2021, the country’s power supply was interrupted by frequent interruptions. This has forced many businesses to move their equipment to U.S. mining locations such as America.

This story contains tags
banks, Bitcoin, central asia, China, Crackdown, Crisis, Crypto, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, Electricity, Energy, Exodus, FUEL, fuel prices, Hashrate, influx, Internet, Kazakhstan, Migration, Miners, mining, power, protesters, Protests, unrest

What do you think will happen to crypto miners due to events in Kazakhstan in 2022? Please share your thoughts in the comment section.

Lubomir Tatsev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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