Protests in Kazakhstan caused Bitcoin crash
The Kazakhstan government ordered the closure of the internet services to stop the ongoing protests in Kazakhstan and that forced to stop every internet-related service including Bitcoin mining operations.
After the ban of crypto mining and trading by China, Kazakhstan took advantage and welcomed huge crypto mining companies to deploy their business in Kazakhstan. As the efforts of Kazakhstan made the country 2nd biggest Bitcoin hash power contributor.
A few days ago, the Government of Kazakhstan increased the price of car fuels. So against this action of the Government, Many people started to protest against the government. Under the huge hurdles, the cabinet chair resigned from his role. Under those high voltage protest dramas, Kazakhstan officials ordered telecom operators companies to close the internet services in the country.
At present, Kazakhstan is contributing around 18% in the top hash power. But due to disturbance in the internet services, Bitcoin mining hash rate fell to 13% ( from 205,000 petahash per second (PH/s) to 177,330 PH/s).
As we know that low hash rate means low confidence of people to hold Bitcoins. So the price of Bitcoin plunged rapidly.
Right now the price of Bitcoin is approx $43,000 at Binance exchange. And this price is 7% down over the last 24-hour price.
Crypto Mining facing problem in Kazakhstan
Just a few days ago, Bitcoinik reported that the majority of the Bitcoin miners in Kazakhstan are facing problems running their crypto mining business.
Most of the miners claimed that they are not able to run their business of crypto mining in Kazakhstan because they are not able to generate income under a huge electricity shortage issues. Mining firms claimed that they are not getting continued electricity supply and soon they may go through bankruptcy.
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