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Why is Bitcoin's global hashrate down 12%?

According to reports, due to repeated interruptions of the Internet in Kazakhstan during the riots, Bitcoin mining activities in Kazakhstan have been severely affected.

Due to the riots in many places in Kazakhstan, Internet communication in Kazakhstan has been interrupted many times recently, which directly affected some bitcoin mining pools located in Kazakhstan.

According to reports, on the 5th of this month, just hours after the domestic network outage in Kazakhstan, The Block, a cryptocurrency consulting and research website, said on social media that Bitcoin’s global hashrate has dropped by 12%. It is understood that the business scale of many mining companies around the world in Kazakhstan has suddenly dropped significantly. The combined hashrate of multiple bitcoin mining pools to mine and process transactions dropped by 12% to 16%.

Kazakhstan is a big Bitcoin mining country. According to data from the Centre for Alternative Finance at the University of Cambridge, in 2021, Kazakhstan will be the second largest bitcoin mining center in the world after the United States, and its hashrate will account for 18% of the world's total.

Public information shows that Bitcoin has plummeted again recently. It fell as low as $40,574 on January 8, down more than 40% from the historical high of $69,000 set in November 2021, and fell by more than 11% in the last 7 days. At the same time, other cryptocurrencies are also "falling in one fell swoop". Market analysis believes that the price of cryptocurrencies such as Bitcoin has plummeted, which is mainly closely related to Kazakhstan (disconnection). Recently, the price of natural gas in Kazakhstan has soared due to the removal of the price cap, and then the President of Kazakhstan announced that the national telecommunications company will cut off Internet service.

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