Crypto Analysis

Kazakhstan shuts down the internet: blow to Bitcoin mining pools

While the protests that could not be stopped for several days continued in Kazakhstan, despite the soldiers taking to the streets, the state administration cut off the internet connection. In the country where a significant part of Bitcoin mining is carried out, mining pools were also negatively affected after this step.

It is stated that the decreases in the pools most affected by the interruption are as follows:

1THash (82% down),
OKEx Pool (46.3% down)
KuCoin Pool (22.7% down)

It has 18% of the entire hash rate!

The biggest reason why the situation in Kazakhstan has become so important is that the country has recently migrated from miners and the total hash rate has risen to 18 percent. Especially after the Chinese bans, miners felt that the electricity was cheap and the transition was very high compared to the USA and Russia. They also seriously preferred Kazakhstan, where it was easier.

However, despite all that has happened, the situation looks much better than when China banned cryptocurrency mining.

Recently, as in Iran and Kosovo, the energy problem has emerged in Kazakhstan and mining facilities have once again been the subject of discussion, but it was stated that 100 companies registered as mining enterprises only in December.

At the time the news was written, the hash rate of Bitcoin hovers around 165 exahash per second. After the Chinese bans, in June, this figure dropped below 85 EH/s with the “shutdown” of the miners.

Message from Blockstream: It wouldn’t be a problem if satellite was used

On the other hand, the blockchain technology company Blockstream did not remain indifferent to the events in Kazakhstan and made a statement stating that a central government should always have a second plan against problems in internet connection:

“Despite the internet outage in Kazakhstan, mining operations could have continued without any problems if companies had used the Blockstream satellite system or other alternatives.

Every Bitcoin miner and node operator should always have a backup communication channel for security. “

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