KAZAKHSTAN CUTS POWER SUPPLY TO BITCOIN MINERS – “STORM” COMES TO BTC AGAIN?

Cryptocurrency miners in Kazakhstan are facing a major restriction, as the national government has cut off electricity supply to Bitcoin mining operations due to the growing political crisis in the country. .

 

As reported by Bloomberg , cryptocurrency miners were blocked from Kazakhstan's electricity grid on January 24 and will continue until the end of this month. A memorandum from KEGOC, the national electricity operator, has also verified the above information with its specific report with the following content:

 

“The planned power supply to crypto mining participants is completely canceled starting from January 24 to January 31.”

 

The tense situation in Kazakhstan has once again become a serious threat to the global Bitcoin hashrate, an important factor influencing the price trend of BTC, especially in the context of the market just “breatheing a sigh of relief.” relieved” after the pressure from the Fed passed along with President Putin’s statement in favor of the cryptocurrency mining industry in Russia .

 

This is the second time in January that Kazakhstan has had a problem with this, having previously had to force the internet to freeze because of protests. Because Kazakhstan has become an ideal location for crypto miners since China “deported” them citing environmental concerns. This led to a massive wave of landings in Kazakhstan looking to tap into the energy-rich country.

As a result, Kazakhstan now accounts for 18% of the total global hashrate distribution as of August 2021, second only to the US . The domestic government also expressed its openness to cryptocurrencies when allowing banks to process crypto purchases , a move among the few countries in the world that can accept and implement.

 

However, at press time, the Bitcoin hashrate has dropped slightly to 178.59 EH/s from the ATH 225 EH/s set on Jan. 20. With that, Bitcoin mining difficulty is still peaking . highest in history.