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Internet in Kazakhstan Has Broken, Bitcoin Miners Are Troubled

 


The act of turning off internet connections by the Government of Kazakhstan has made bitcoin miners in the country nervous.

The Kazakh government shut down internet connections in the country to quell demonstrations against rising fuel prices. This not only disrupts communication in the country, but also makes the price of bitcoin plummet.


Kazakhstan is one of the big players in the bitcoin world. Last year, they became the second largest country in terms of bitcoin mining, only outpacing the United States.



After the Chinese Government banned crypto mining in the country, many miners moved their operations to Kazakhstan, and as of August 2021, 18% of the world's bitcoin mining originates in Kazakhstan.


As a result, by turning off the internet connection in the country, bitcoin operations globally were disrupted. This happens because bitcoin operations are highly dependent on miners.


One of the most felt effects was the bitcoin exchange rate which immediately plummeted. On Thursday (6/1/2022), the bitcoin exchange rate fell 8% to USD 43 thousand. Although currently the Internet connection in the Central Asian country has recovered, the bitcoin exchange rate has not improved either.


The number of bitcoin miners in Kazakhstan is also actually worrying in terms of air pollution. The reason is that bitcoin mining in the country relies on coal power plants, which generate large emissions.


In fact, according to the International Energy Agency, emissions per energy unit in Kazakhstan are higher than in China before. It is estimated that coal power plants in China produce about 1,000 grams of CO2 for every KWh, while in Kazakhstan the figure is close to 1,500 grams of CO2 per KWh.


The Kazakh government itself in 2021 plans to raid unregistered miners, who are estimated to consume twice as much electricity as registered miners, as quoted by the Guardian, Friday (7/1/2022).

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