Shutting down the internet in Kazakhstan

Kazakhstan, has had a few very hefty days this week, the second largest bitcoin mining country in the world is in chaos, because of civil unrest due to high fuel prices. The government resigned after the protests started, and the internet was shut down, to stop protesters from communicating with eachother. This had large consequences for the many bitcoin farms that are housed in Kazakhstan. Approximately 18 % of the Bitcoin hash power comes from the country of Kazakhstan these days. But now for the moment as the internet was deliberately shut down by the president. The effect on the Bitcoin network is quite big for the other miners around the world. They are receiving 18 % more in rewards because of the hashing power that was abolished in Kazakhstan. An unexpected gift for the other miners all over the world.

Kazakrash

Upon this news, Bitcoin dropped quite sharply in price, to about 42000 USD. An overreaction by the market in my opinion, but that's just how Crypto works, big swings. The Bitcoin network is so widely spread and secured by this, that just a few computers will keep the network up, if necessary. The rewards are just shared by the ones "securing" the network. This unexpected internet shutdown has for effect that the other miners will receive more rewards for the same hashing power. And will also incentivize new miners to take in the place for the workless Kazakhi miners. Which will make the network even stronger in the long run. So, maybe it is a bit of mayham now, in the long run, this is a good thin. Of course not for the Kazakhi people who are going through some rough times these days. I hope for them this gets settled soon, and that peace may return over there.

Sincerely,

Pele23

Posted Using LeoFinance ^Beta