Bitcoin (BTC): Despite Mining Restored to 90% in Kazakhstan, Hashrate Still Lagging

According to Alan Dordjiev, head of the Kazakh National Association of Blockchain and Data Center Industry, leading blockchain companies mining bitcoin in Kazakhstan have restored between 80% and 90% of production after days of riots. However, the hash rate global bitcoin, which fell more than 10% during Kazakhstan’s internet blackout on January 5, has been slow to recover, remaining 17% from its peak of around 205,000 petahash per second (PH /s).

Kazakhstan remains the second site of mining of bitcoin to the world despite its internal difficulties

Dordjiev said miners are working to restore production to full capacity as soon as possible. ” We expect the situation to stabilize completely within a week.“, he announced in an interview on January 11.

Kazakhstan accounts for around 18% of total bitcoin processing activity, second in the world after the United States. The Central Asian country has been hit by deadly protests over the past week, sparked by soaring fuel prices.

After the public network provider Kazakhtelecom shut down the internet during the riots, the hash rate , a measure of global computing power devoted to mining bitcoin, plunged.

Dordjiev, whose association represents 25 registered minors, i.e. 70% of the population of mining total local, using 600 MW of electricity, said the outage was ” temporary “. This did not affect the regions where the companies operate. mining official, he added.

Internet services have now been restored in most areas, Dordjiev said. However, even if Kazakhstan-based miners such as Energix and KZ Systems re-enter the network, the hash power total bitcoin was up just 2.4% to 172,000 PH from around 168,000 PH a few days ago, according to data from YCharts.

the miningbitcoin may leave Kazakhstan due to civil unrest

The increase in hash ratesuggests that miners are optimistic about making profits, which could drive BTC prices higher. The relationship is not so linear, however, as it is difficult to gauge future price changes based solely on the hash rate .

The good thing is that when miners commit more computing power to process bitcoin transactions, it secures the network against 51% attacks, a situation that would result in the risk of rogue miners hijacking the system. and spend twice coins.

From a strategic perspective, Kazakhstan will remain one of the most attractive for the development of mining of cryptocurrencies “, explained Dordjiev, in a previous statement shared in the press.

Currently, there is a constructive dialogue on the regulation of the industry at the legislative level with the responsible state bodies. Previously introduced restrictions on electricity supply to “white” miners have been considerably relaxed “, did he declare.

Matrix Exchange Chairman Vasja Zupan noted that he doubts the mining return to previous levels in Kazakhstan. “Due to the tense political situation in the country, I expect more minors move their operations abroad“, He clarified.

This seems even more likely given earlier signs that Kazakhstan was a temporary haven from the start, with miners seeking a more stable and predictable environment even before the current unrest unravels. Furthermore, I also expect that the current price drop may cause some of the miners to go out of business, thus reducing thehashrate,” Zupan announces.

Kazakhstan maintains its position as a flagship site forminingrecording nearly 18% of total bitcoin (BTC) activity. The operations ofminingcould be restored to almost 90% following the riots that took place in the country, but thehash ratestay far behind. Indeed, this has only increased very slightly in the region, pushing many miners to move abroad in search of more hospitable land for their mining activity.mining. Is Kazakhstan’s crypto golden age coming to an end?

Source: BeInCrypto

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Thomas Poirier

I am sure that blockchain and cryptocurrencies are the future, and I want to spread this idea to everyone because the more people who believe in cryptocurrencies, the sooner the future will come.

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