Bitcoin’s global computing power has come down drastically. This is due to the closure of the Internet due to violence in Kazakhstan this week. Russia had sent troops on Thursday to control the rebels in Kazakhstan. Kazakhstan police said dozens of rebels have been killed in Almaty city.
The internet was shut down in Kazakhstan on Wednesday, Reuters reported. Monitoring site Netblocks called it an “internet blackout across the country.” This made it difficult for Kazakhstan’s crypto miners to access bitcoin networks. Kazakhstan became the second-largest center of bitcoin mining after the US last year, according to the Cambridge Centre for Alternative Finance. China’s crackdown on bitcoin mining has increased its mining in Kazakhstan.
Bitcoin and other cryptocurrencies are mined or created on high-power computers. These minings take place at data centers in different parts of the world. These data centers compete to solve complex mathematical equations. Electricity is consumed a lot in this process. Bitcoin’s price had fallen sharply on Thursday despite its impact on bitcoin mining and went below $43,000. Investors have sold out in high-risk assets after the US Federal Reserve hinted at raising interest rates. This has affected cryptocurrencies including Bitcoin.
Also Read: What are Dynamic Study Modules
Kazakhstan’s crypto mining centers also consume a lot of electricity. Coal-powered plants are used for electricity generation in Kazakhstan. This is a major cause of pollution. The Kazakhstan government had said last year that it was preparing to crack down on unregistered crypto miners. They are estimated to consume almost double the electricity as compared to registered miners. Kazakhstan’s Energy Ministry had reported last year that unregistered miners are consuming electricity up to 1.2 GWT. In addition, the consumption of registered miners is about 600 MWt. In Kazakhstan, about 8 percent of the total generation capacity of electricity is being consumed for crypto mining. The European country of Kosovo has banned crypto mining due to the high consumption of electricity. In some other countries also, there is a shortage of electricity due to crypto mining.
Elora is PR and Outreach Manager at Crunchoid Inc. Outside of work, Elora enjoys Flywheel, tacos, the tennis, and adventuring around the globe.