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January 17, 2022
Mining

Fuel price protests escalate in Kazakhstan causing internet blackout for its Bitcoin miners

Spurred by a pointy rise in gas costs, raging protests in Kazakhstan caused a nationwide internet blackout.

Following the US, Kazakhstan counts because the second-largest nation relating to mining Bitcoin–accounting for roughly 18% of the community hash fee.

Internet blackout

The world internet monitoring group WebBlocks confirmed a “significant disruption to internet service in Kazakhstan from the evening of Tuesday 4 January 2022, progressing to a nation-scale communications blackout on Wednesday afternoon.”

Riots broke out in the west of Kazakhstan on Sunday–after a cap on vitality costs was eliminated, doubling the price of liquified petroleum gasoline, BBC reported.

Kazakhstan’s president Kassym-Jomart Tokayev dismissed the federal government, assuring decrease gas costs could be restored, however the announcement had little impact.

In a televised handle, he promised a tricky response, calling the protests a “black period” in the nation’s historical past–with a state of emergency being declared in Almaty and Mangistau.

Meanwhile, in a bid to restrict protection of raging demonstrations, the authorities appeared to have lower the internet off, with connectivity ranges plunging to almost zero, in accordance with WebBlocks.

Hash fee drops 

But what does it imply for the Bitcoin community, when one of many main international locations in phrases of mining experiences a nationwide internet blackout?

“Bitcoin survived an overnight 50% HR dump, it will be fine here too,” in accordance with Lerry Cermak, who identified the Bitcoin hash fee drop on Twitter.

Bitcoin community hash fee, a key indicator of how wholesome the community is, pushed primarily by problem mining and the variety of miners, dropped 12% in a number of hours of the internet being down.

“Also just to be clear, I am in no way suggesting this should dump the price. It’s relatively inconsequential but just interesting given that a country that has nearly 20% of HR lost internet for a few hours,” VP of Research on the Block added.

As Cermak identified, “it matters to estimate the impact of an unprecedented event like this.”

Posted In: Bitcoin, Mining

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