Kazakhstan Internet outage: Bitcoin global computing power disappears by 12%

According to CCTV Finance, US media reported that Bitcoin mining activities in Kazakhstan were severely affected due to repeated Internet outages during the riots. Data shows that Kazakhstan has become the world's second largest Bitcoin mining center after the United States in 2021.

Due to the riots in many places in Kazakhstan, Internet communications in Kazakhstan have been interrupted many times in recent days, which has directly affected some Bitcoin mining pools located in Kazakhstan.

According to reports, on the 5th of this month, just hours after the domestic network in Kazakhstan was interrupted, the cryptocurrency consulting and research website The Block stated on social media that Bitcoin's global computing power had dropped by 12%.

It is understood that computing power, also known as hash rate, is a unit of measurement for the processing power of the Bitcoin network. The scale of operations of many global mining companies in Kazakhstan has suddenly dropped sharply. The total computing power of mining and processing transactions of multiple Bitcoin mining pools has dropped by 12% to 16%.

Kazakhstan is a major Bitcoin mining country. According to data from the Center for Alternative Finance at the University of Cambridge in the UK, in 2021 Kazakhstan was the world's second largest Bitcoin mining center after the United States, with its computing power accounting for 18% of the world's total.

Public information shows that Bitcoin has plummeted again recently, falling to as low as $40,574 on January 8, down more than 40% from its historical high of $69,000 in November 2021, and more than 11% in the past seven days. At the same time, other cryptocurrencies are also "falling all over the place." Market analysts believe that the price plunge of cryptocurrencies such as Bitcoin is mainly closely related to Kazakhstan (network disconnection)! Recently, due to the cancellation of price limits, natural gas prices in Kazakhstan soared, and then the President of Kazakhstan announced that the national telecommunications company would interrupt Internet services.