How can we relate the BTC crash to Kazakhstan?
Kazakhstan has been one of the significant places where cryptocurrency mining occurs worldwide. Just like history, it has led itself into a very state-wide crisis, and because of this, nationwide protests are going on against the Kazakhstan authority of administration. However, just like history, it has consequences inside the country and outside the geographical boundaries of Kazakhstan. The financial dictate of the whole world based on cryptocurrency affects the Kazakhstan protest. However, there are a lot of mining activities going on in the country, which is struck down by the recent blackout of the Internet inside the geographical boundaries of Kazakhstan.
Kazakhstan is standing at the second largest mining pool position worldwide, which the United States of America narrowly beats in terms of volume. However, when a nationwide shutdown of internet supply in Kazakhstan, the sudden dip in bitcoin prices was disastrous. As a result, many cryptocurrency investors were at huge losses because of the sudden downfall in bitcoin prices due to the lack of internet supply in the boundaries of Kazakhstan.
The recent trend of shutting down the Internet supply in any corner of the world to curb the protest from the people is getting very new, but it is still very effective. Only a few nations adopt such aggressive methods like this, but it is very effective to shut down the protest because it leads to news spread. But unfortunately, there are only a few sources that give the information that if you look at the current condition of Kazakhstan, it could also have led to the consequential global crisis. If you are interested in bitcoin trading check if bitcoin is a legit investment .
How did BTC slump?
The cryptocurrency market in Kazakhstan woke up with a thunderous typhoon of the downward slope in the prices of bitcoins. It came just right after the government decided to impose a nationwide blackout of internet supplies because of the anti-government protest going on in the country. Because of the protests, the government was utterly going into hiding, and the employment of force became a very important and the most valuable weapon for the government. Also, due to the high recorded slums in the prices of bitcoins, the investors were terrified, and they started to sell off their cryptocurrency assets. According to this, when the crypto prices were declining and reached a price level of US$41,000, the investors started to sell vast amounts of the cryptocurrency assets to maintain the most.
Therefore, on the first Friday of 2022, the bitcoin market was crashed to a large extent. As a result, there was a massive instability in the cryptocurrency market, and there is expected to decrease in the prices of bitcoins. If we look at the percentage decrease in the virtual cryptocurrency market, you will see that the Kazakhstan mining pool decreased by almost 11%. Because of the internet blackout, only 5% of the total population of Kazakhstan was capable of using internet facilities. Also, defining pool was very low, and it also led to the downfall of the hash rate of BTC all over the world.
One of the primary reasons Kazakhstan leads to many fluctuations in the cryptocurrency market is that it is still new to the mining scenario. Even though it has been a while since Kazakhstan became the second-largest pool for crypto mining operations, it has been experiencing a lot of fluctuations. Even before the internet blackout in the country, there was massive instability in the cryptocurrency mining operations. In September 2021, there was a significant power loss, and therefore, cryptocurrency mining was affected mainly because of this. Hence, we could say that Kazakhstan is a country that is still not ready to mention the massive load of cryptocurrency mining operations that other countries may have managed in a better way.
The majority of the cryptocurrency miner located in Kazakhstan is of Chinese origin. Earlier, they were getting on their cryptocurrency mining operation in China, but they shifted their location preferences because of the bank. However, cryptocurrency minus was unaware that they had to go through many problems to the extent that they could not get an internet facility. However, the miners located in Kazakhstan still managed to carry on with their work with some of the significant drawbacks which come along in their way. But, the main idea of decarbonizing the global economy has come up, and therefore, Kazakhstan is also looking forward to taking steps towards it.
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