Thursday, April 18, 2024
HomeBTCCryptocurrency mining crisis in Kazakhstan

Cryptocurrency mining crisis in Kazakhstan

In Kazakhstan, an influx of miners was seen after China banned cryptocurrency mining last year making it the world’s second-largest cryptocurrency mining hub. However, during the period of social unrest last week, the Kazakh government closed the Internet in the country. This has reduced Bitcoin’s hash rate, or global computing power, by about 13 percent forcing the miners to seek more enterprising locales.

Since then, almost all operations have been restored, according to the National Association of Kazakhstan’s blockchain and data center industries, which represent 80 percent of Kazakhstan’s legal mining companies. 

However, this resumption of operations could not alleviate the concerns of miners and their customers as they are still thinking of relocating to another country.

Before the social unrest, “we used to refer to Kazakhstan, a paradise of the mining enterprise due to the strong political surroundings and strong electricity. But now we are comparing the situation. I assume we can preserve part of the hashrate in Kazakhstan and could flow a few to different countries.” stated miner Vincent Liu.

Vaishali Goel
Vaishali Goel
Technology enthusiast, explorer and academic scholar. Currently exploring the crypto world. Join me in my journey to see how crypto, NFT and Metaverse will change the world.


Please enter your comment!
Please enter your name here

3 × four =

- Advertisment -

Most Popular