Technology

Thursday Bitcoin Network Down Because of Kazakhstan Crisis

A FIFTH of the global Bitcoin mining network has been taken down due to the current volatile situation in Kazakhstan, reports say.

Kazakhstan is one of the largest Bitcoin mining countries in the world along with the US.

Kazakstan has been in turmoil since 2/1 due to protests after fuel price hike

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Kazakstan has been in turmoil since 2/1 due to protests after fuel price hikeCredit: Getty

The Central Asian country has had its internet access cut off, which means that the number of Bitcoin mining computers has dropped significantly.

Computers are needed for complex mathematical calculations to get a new Bitcoin into circulation online.

This process is also known as mining and it requires a large amount of energy.

Bitcoin mining is beset by controversy because of the amount of fossil fuels required to mine the cryptocurrency and its negative impact on the environment.

China was once the largest Bitcoin mining country until a state crackdown on the practice sent miners to Kazakhstan, where fossil fuel energy is abundant and cheap.

Unfortunately for these miners, Kazakhstan is currently experiencing a period of civil unrest.

The unrest is attributed to soaring fuel prices.

Protesters have engaged in violent clashes with the country’s security forces.

The unrest has continued since January 2.

Kazakstan President Kassym-Jomart Tokayev is said to have enforced the order to block internet access on January 6.

No internet means no Bitcoin mining.

According to the crypto experts at BTC.com, the computer power dedicated to Bitcoin mining fell 14% from Tuesday to Thursday.

Didar Bekbau, a Bitcoin miner in Kazakhstan, tweeted: “No internet, so no mining. Internet is blocked in Kazakhstan. Mobile operators, home internet, everything. ”

Read ours Cryptocurrency price news blog for the latest update on the market.

Reports suggest that some people may have occasional Internet access but this will not be enough for mining to continue normally.

There are enough Bitcoin miners outside of Kazakhstan to keep the coin running.

Cryptocurrency has seen it low value was $42,579.93 (£31,476.15) yesterday.

The crypto market was a sea of ​​red yesterday morning with a lot of other popular cryptocurrencies crashing.

Ethereum is the second largest cryptocurrency and has dropped 12%.

The drop comes after the Federal Reserve revealed that it will cut support for the US economy, which is bad news for riskier assets like cryptocurrencies.

The value of Bitcoin has dropped even lower today with a value of $41,993.90 (£30,919.06) at the time of writing.

Mysterious fugitive Bitcoin trader hid ‘100 million dollars’ in crypto before disappearing after criticizing Brazilian leaders

In other news, Donald Trump looks set to make his debut His Truth social app the next month.

Bitcoin has been predicted to collapse in 2022 and the value of the cryptocurrency has dropped significantly this week.

And, Cadillac has revealed a futuristic electric car concept with a love design inside.

https://www.the-sun.com/tech/4415528/bitcoin-network-down-price-crash-kazakhstan/ Thursday Bitcoin Network Down Because of Kazakhstan Crisis

TaraSubramaniam

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