Kazakhstan foils protests, shuts down networks and undermines bitcoin mining, strangling Chinese power.

At the start of the new year 2022, Kazakhstan, which became the second Chinese bitcoin powerhouse in the world due to the explosion of cryptocurrency mining in China last year, recently sparked strikes across the country over of rising gas prices. Kazakh President Tokayev (Kasim-Jomart Tokayev) announced on the 5th that the rebel towns have entered a state of emergency.

The power grid is also affecting several mining companies that have traveled to Kazakhstan in search of affordable energy. Larry Cermak, research director at TheBlock, has compiled the main impacts of mining lakes.

"So far, Bitcoin's hashrate appears to have fallen by 12% on average within hours of the network shutdown."

According to the table, the mining lakes with the greatest energy losses were 1THash (down 82%), OKEX Pool (down 46.3%) and KuCoin Pool (down 22.7%), second and third. F2Pool, Ant Pool and ViaBTC also fell 12.8%, 11.6% and 19.2%, respectively.

Larry Cermak also referred to a BTC.com pool water report over the past three days describing the drop in energy metering that occurred the day before. .

However, the impact of the Kazakh riots on Bitcoin's strength remains far from the drop in electricity consumption seen last year when China banned Kazakhstan's Bitcoin mining industry.

Kazakhstan supports legalization of cryptocurrency industry

Due to Kazakhstan's current energy supply, national authorities quickly legalized the influx of cryptocurrency mining companies by 2021. Blockage reports indicate that in the coming months, the Kazakh government recently established a list for the Ministry of Digital Development of Kazakhstan, a new Cryptocurrency mining government and mining companies were involved in the registration during the crisis in the national electricity grid.

On the Lunar New Year, Kazakhstan's Ministry of Digital Development registered 146 cryptocurrency mining companies. This includes 53 companies currently active in the mining sector, 82 companies looking for a mining start-up and 11 other service providers.

Local Kazakh newspaper TengriNews reported that Kazakh Energy Minister Magzum Mirzagaliyev was unhappy with the shutdown of electricity for registered volunteers. He demanded the closure of a gray worker who was unregistered in the country and engaged in illegal activities.

“We have seen volunteers in our country, they use over 600 megawatts of electricity, we designed gray miners to use 340 megawatts. I want to send a clear message that no one is ready to block free miners. minors go to the free minors area. "

Miners lack electricity

Many mining companies who come to Kazakhstan in search of cheap electricity also find that Kazakhstan's electricity supply is very limited. A city consultant told TheBlock: For up to a month, all major mining sites are closed. Now they are working again. These mining companies are leaving Kazakhstan. One of the biggest companies, BitFuFu, told CoinDesk that it had abandoned its US technology for its US market due to conflicting policies and energy chaos.

However, there were still other miners in Kazakhstan and the war passed. Chinese bitcoin miner Canaan, in a filing with the U.S. Securities and Exchange Commission (SEC) on Jan.4, announced it would add 10,000 machines to its operations in the Kazakh region.

According to a "eurasianet" report, the Russian-led Security Treaty Organization (CTSC) also approved Kazakh President Kasim-Jomart Tokayev's request from January 5 to. The Russian army under the CSTO agreement will soon be in Kazakhstan. Regular handling and appeasement of unrest has further exacerbated the mining towns.