Kazakhstan Internet Blackout Hits Bitcoin (BTC) Mining
On Tuesday, news had hit the wires of the Kosovo government banning crypto mining amidst an ongoing energy crisis. The government had called a 60-day state of emergency late last year to enable a redirect of funds to energy imports. From a global perspective, the ban may not have been a significant one, with Kosovo not featuring as a dominant Bitcoin (BTC) mining nation.
Fuel Prices, Inflation, and Protests
Overnight on Wednesday, there were reports of internet blackouts in Kazakhstan. Rising fuel prices have led to civil unrest in the country, following the government’s decision to remove a cap on fuel prices. Anti-government protesters were reported to have stormed government offices in the country’s main city. There were also reports of protests in other parts of the country.
In response, Kazakhstan president Tokayev imposed a nationwide communications blackout.
Impact on Bitcoin (BTC) Mining
Recently, Kazakhstan has seen increased popularity amongst Bitcoin (BTC) miners. According to the University of Cambridge, Kazakhstan accounted for 18.1% of the total hashrate back in August 2021 figures. In April, the total hashrate had stood at 8.2% and had been as low as 1.4% back in September 2019, when China had accounted for 75.5% of the global hashrate.
This week’s internet blackout and fall in Bitcoin (BTC) mining looks to have had a muted impact on Bitcoin (BTC). The timing of the blackout comes at a bearish time for Bitcoin (BTC) and the broader crypto market.
According to glassnode.com, the mean hashrate did fall to 168 exahashes per second on 3rd January before a pickup to 181 exahashes per second on Wednesday. The mean hashrate sits well be a start of the year 209.97 exahashes per second, however.
For miners, the removal of the cap on fuel prices could become an issue, however. Miners will need to explore alternative mining friendly nations should fuel prices continue to soar. One big issue, however, could be U.S government action. News had hit the wires overnight of U.S Congress plans to look into the impact of cryptos and Bitcoin (BTC) mining on the environment. Taking the U.S off the map as a mining nation may have more of an impact on Bitcoin (BTC). As at August 2021, the U.S accounted for 35.4% of the global hashrate.
At the time of writing, Bitcoin (BTC) was down by 0.59% to $43,177. This morning’s pullback followed a 5.23% fall on Wednesday that came in response to the FOMC meeting minutes release. Bitcoin (BTC) had fallen back to $42,500 levels before a partial recovery to $43,100 levels.