In terms of Bitcoin (BTC) mining hash rate, Kazakhstan, the world’s second largest country, has experienced unprecedented political turmoil due to the sharp rise in fuel prices. As a result, the country’s presiding cabinet resigned, but before the state-owned Kazakhstan Telecom shut down the national Internet, network activity plummeted to 2% of the daily high.
This move caused a serious blow to the country’s Bitcoin mining activities. According to data compiled by YCharts.com, the overall hash rate of the Bitcoin network dropped by 13.4% within a few hours after the shutdown, from approximately 205,000 petahash per second (PH/s) to 177,330 PH/s. The country accounts for 18% of Bitcoin network hash activity.
Just a few days ago, the government of Kazakhstan lifted the price ceiling of liquefied petroleum gas used for automobile fuel to adapt to market conditions. The price doubled overnight, triggering violent protests. The Internet is still inaccessible in Kazakhstan. If extended, in addition to Internet services, the consequences may be severe. The Kazakhstan Data Center Industry and Blockchain Association predicts that the country will generate 1.5 billion U.S. dollars (and another 1.5 billion) from legal cryptocurrency mining activities in the next five years. U.S. dollar) activities.
The country’s low energy prices have attracted domestic and foreign entities to open bitcoin mining operations. According to global gasoline prices, the cost of electricity in Kazakhstan per kilowatt-hour averages only $0.055.