Kazakhstan Brings Nightmare to Bitcoin Miners

The eyes and ears of the world have been on Kazakhstan for a while. Kazakhs, who have had a very quiet life for years, after the decisions they just got mad. Complaining about the price hikes and the cost of living, the people turned the streets into a war zone. The events stopped for a few days, but the events in Kazakhstan, crypto market seriously shook. You ask why? Let’s explain.

Kazakhstan is pretty good for cryptocurrency mining. advantageous It was a country. The good thing is, the government was well aware of this. Empty and old warehouses in the country were cut out for the establishment of mining farms. Moreover, the cold climate also eliminates the extra costs required to cool the devices, which in general millions of dollars It allowed savings. Moreover, Kazakhstan was already a country where energy was cheap. All this, Kazakhstan mining paradise turned it into.

China’s ban decision has made Kazakhstan a favorite of millions

The Chinese government has always been tough on cryptocurrencies. However, China has been using cryptocurrencies for a long time. center of mining remained in position. In fact, more than 60 percent of miners worldwide were in China. However, a statement made last year thwarted the plans of miners in China. Chinese government, mining being banned explained. This prohibition led to the flock of miners to migrate to Kazakhstan. Because Kazakhstan was very close to China. Shipping tens of thousands of devices, for miners it wasn’t hard at all. The events had made Kazakhstan a favorite of miners. Gift of jewelry October 2021‘up to…

Thinking that everything was going well, Kazakhstan encountered an unexpected situation despite cheap energy. Miners flocking to the country, Kazakhstan to energy grids They have placed an unprecedented burden. The government wanted to prevent 8 percent of all electricity in the country from being used by miners. This time, the miners got something they never expected. restraint they encountered. The government announced that it will immediately cut off the energy of miners that cause excessive consumption and risk of blackout. When capacities return to normal, miners would be able to regain electricity.

Interruptions started between 18:00-23:00

Miners in Kazakhstan were still in good standing as of October 2021. Didar Bekbauov, who established a mining farm in the region, between 18:00 and 23:00 hours He said that there were interruptions, and stated that they thought this would continue until March 2022 at the most. This situation would cost tens of thousands of dollars And it was risky. Because the sudden stop of the working systems could cause malfunctions due to cold weather. However, all this did not intimidate the miners, and the companies continued to work. Now the situation is as never before in a bad mood…

January 2022: Unprecedented uncertainty begins for miners

Kazakhstan, due to the confusion that started recently, Bitcoin miners nightmare became. The frequency of incidents such as looting has put mining farms on alert. In fact, according to the news from the region, some mining farms are working to ensure facility safety. various they took measures. Fortunately, no loot has been reported so far. So what’s the problem? The exact number is unknown and mining devices that have been out of operation for days, the ongoing unrest, and the Russian soldiers in the country…

The authorities that brought together the miners in Kazakhstan, they don’t know what to do. The only statement made by the authorities is that their only concern for now is to protect the facilities. In the statements made by the President of the Kazakhstan National Association of Blockchain and Data Centers Industry Alan Dorjiyev, it is stated that all farms are safe for now, but no one knows what will happen tomorrow. If protests shift to mining farms in the north of the country, Worse days may await the crypto world. Unfortunately, we have no choice but to wait for now.

The balance sheet of events in Kazakhstan to the cryptocurrency community:

The confusion in the country, which has become the favorite of the mining world, has caused the amount of computational power that the Bitcoin network consumes to work continuously, that is. Bitcoin hash rate dropped 12 percent. In addition, the atmosphere of uncertainty caused investors to flee and seek refuge in safe havens. Analysts, the events experienced in the mining industry in Kazakhstan. $7.2 million they think it might cost. As the events drag on, the hash rate continues to drop, and the investor flees, the cryptocurrency industry will continue to suffer more. This will affect the price of all cryptocurrencies, especially Bitcoin.

Why don’t they go?

Miners’ Kazakhstan when things got so out of hand why didn’t you leave You may be thinking. Such a thing, unfortunately, is hardly possible. Because there is no other country around where energy is as cheap as Kazakhstan. Moreover, there are sanctions in some countries. Even so, USA is the only solution. But going from Kazakhstan to the USA is fraught with numerous risks. What are these risks?

Mining companies say that the devices they use are very expensive, during the transportation of these devices. may be damaged they are thinking. Also to move the mining farms in the country from Kazakhstan to the USA. 2 weeks It takes such a long time. Moreover, these are not the only problems. Establishing a Bitcoin farm in the USA is not an easy task and it is necessary for a mining farm to be established. It takes months of preparation. In other words, there is no other option for the miners other than to stay in Kazakhstan and hope that things will calm down.

This content cannot be considered as investment advice.