After the bans in China, many mining companies moved their operations to other countries. Kazakhstan was one of these countries. Months later, Kazakhstan became the second country with the most BTC mining.
The Kazakhstan government made a big hike in fuel prices. This caused unrest within the country. People took to the streets and began to protest the government. As a result, the country’s Presidential cabinet resigned. The government has decided to shut down the nationwide internet to prevent further incidents.
The internet outage has severely impacted the Bitcoin mining activity in the country. According to the data obtained from dYCharts; The overall hash rate of the Bitcoin network It fell 13.4%. Hash rate It fell from 205,000 petahash (PH/s) to 177,330 PH/s. 18% of the Bitcoin network hash power comes from Kazakhstan.
These events also adversely affected the Bitcoin price. Bitcoin from $47,000 to $42,000 fell down. This decline created an atmosphere of panic in the market.
We can say that the main reason why miners prefer Kazakhstan is electricity prices. The country’s low energy prices made Bitcoin miners come to their country. businesses in the USA When paying $0.12 per kWH, businesses in Kazakhstan per kWh pays only $0.055.