On Wednesday, political unrest erupted in Kazakhstan, the country with the world’s second largest hashrate on the Bitcoin network, due to the rapid rise in oil prices. As a result, the president of the country’s cabinet announced his resignation and the government has ordered to block access to the Internet in the country.
According to YCharts.com, the overall hashrate of the Bitcoin network dropped by 13.4% within a few hours. It dropped from its peak of about 205,000 petahash per second (PH/s) to 177,330 PH/s.
The protest was triggered by the lifting of price restrictions on liquefied petroleum gas, which is used as a fuel for cars. As a result, oil prices doubled overnight. This was followed by protests.
Kazakhstan will earn $1.5 billion from the legal mining of cryptocurrencies over the next 5 years. The country will lose a large part of its revenue due to the blockade of the Internet.
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Friday, January 7, 2022