Bitcoin hashrate collapses due to internet outages

Yesterday, Wednesday, January 5th, Kazakhstan became quite uneasy in several respects. This is significant for the crypto scene insofar as the country now ranks second in the mining hashrate. The rise in fuel prices had caused real tumult among the population. The country’s cabinet chairman resigned. Before that, however, the state-owned Kazakhtelecom had switched off the Internet in the country. As a result, network activity collapsed to 2 percent of its daily highs.

The impact on mining activities followed immediately. According to data compiled by YCharts.com, the total hashrate of the Bitcoin network decreased by 13.4 percent in the hours after the shutdown. Now, Kazakhstan is so important that it accounts for 18 percent of the global hash activity on the Bitcoin network. The network data provider NetBlocks reported on Wednesdaythat Kazakhstan is still in the midst of a nationwide internet blackout one day after the unrest.

Gas price doubled overnight in Kazakhstan

In a Televised address from President Tokayev, he asked the citizens and Russia for help in “saving the state”. The protests were initially triggered by anger over the increase in fuel prices. The background to this is that a few days earlier the Kazakh government had lifted the price caps for liquefied petroleum gas, which is used as fuel for cars. Adjusting to market conditions meant that the price doubled overnight and sparked violent protests.

The unrest spread quickly and was also directed against the predecessor of President Kassym-Jomart Tokayev, Nursultan Nazarbayev. He officially resigned in 2019 after almost three decades of government. Due to the opaque conditions, however, he apparently continues to pull the strings in the background.

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Bitcoin hashrate collapses due to internet outages

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