The Kazakhstan government resigned and shut down the Internet in protest, causing the Bitcoin network hash rate to plummet by 13.4%

On Wednesday, Kazakhstan, Bitcoin’s second largest country in the world (Bitcoin) Mining computing power has experienced unprecedented political turmoil due to the sharp rise in fuel prices.As a result, the country’s presiding cabinet resigned, but before that, the state-owned Kazakhstan Telecom shut down the country’s Internet, leading to network activity Fell to 2% of daily height.

This move caused a serious blow to the country’s Bitcoin mining activities.According to the data Compile According to YCharts.com, the overall hash rate of the Bitcoin network dropped by 13.4% within a few hours after the shutdown, from approximately 205,000 petahash per second (PH/s) to 177,330 PH/s. The country accounts for 18% of Bitcoin network hash activity.

Just a few days ago, the government of Kazakhstan lifted the price ceiling of liquefied petroleum gas used for automobile fuel to adapt to market conditions. The price doubled overnight, triggering violent protests. At the time of publication, the Internet was still inaccessible in Kazakhstan.If it is extended, in addition to Internet services, the consequences may be severe. The Kazakhstan Data Center Industry and the Blockchain Association predict that the country will produce 1.5 billion USD from legal cryptocurrency mining (And another $1.5 billion in illegal activities) in the next five years.

The country’s low energy prices attract domestic and foreign entities Open a Bitcoin mining store. according to To global gasoline prices, Kazakhstan’s electricity cost On average, companies only need US$0.055 per kWh, which is only a fraction of US$0.12 per kWh for US companies.