Political turmoil in Kazakhstan weighs on Bitcoin mining power

Political turmoil in Kazakhstan weighs on Bitcoin mining power

The processing power or hash rate of Bitcoin miners has fallen by at least 12%, due to political instability in Kazakhstan.

This central Asian country houses 18% of the processing power of Bitcoin mining, and in the face of protests that led to the resignation of its government this morning, the miners would have stopped working.

The country’s political instability stems from protests over the increase in fuel prices nationwide. The repression undertaken by the State has been accompanied by Internet and power outages, which would have affected the activities of Bitcoin miners.

According to the researcher Larry cermak, the hash rate of mining pools fell 12% after the protests this morning, which have been more violent and generated the government resignation.

Political turmoil in Kazakhstan weighs on Bitcoin mining power
Source: Larry Cermak.

As we can see in BTC.com, Bitcoin mining pools, virtual pools where miners share waiting transactions and build blocks to add to the ledger (blockchain), have lost processing power. This, due to the temporal proximity, seems to be related to the political events in Kazakhstan.

Political turmoil in Kazakhstan weighs on Bitcoin mining power
Bitcoin mining pools hash rate. Source: BTC.com.

On the other hand, transaction fees have risen to an average of at least 8 and 15 satoshis per byte, although some users have paid up to 500 satoshis per byte, according to Mempool.Space.

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Political turmoil in Kazakhstan weighs on Bitcoin mining power

Although the volume of pending transactions is not high, during the last 24 hours there have been significant peaks, also in terms of the weight in memory of some of these transactions.

Political turmoil in Kazakhstan weighs on Bitcoin mining power
Volume of transactions in the last 24 hours according to their weight. Source: Mempool.Space.

In the event that the network becomes too congested due to a further decrease in the hash rate, this would be balanced by the next mining difficulty adjustment, which will occur in approximately two days.

CryptoNews has reported how Kazakhstan became a destination where miners found a place to settle after bans in China. Regardless, energy problems, which has led to the fall of the government, represented obstacles to Bitcoin mining in Kazakhstan.


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