Chinese Crypto Miner BIT Mining ‘Unlikely’ To Flee Kazakhstan:Report
Bitcoin mining activities in Kazakhstan are presently at a standstill and miners within the counter are starting to evaluate their options. The primary focus right now for miners in Kazakhstan is how to effectively proceed with Bitcoin or crypto mining activities.
The Origin of the ProblemGlobalMarketingGuide
Just last year, China took a strong stance against crypto mining and all forms of crypto trading, noting the environmental effects of these mining activities. This then induced the mass movement of Several Chinese miners such as BIT mining to friendlier territories. These territories included Kazakhstan, North America, Russia, and several other regions.
Since these developments, minerals have now established themselves in these new regions, gaining a foothold. However, a recent problem has been transported to Kazakhstan. Presently, protests are escalating concerning the issue of an increase in electricity bills, fuel prices, as well as allegations of corruption. Protesters are targeting various government offices in Kazakhstan’s main city as well as other regions within the country.
With the protest escalating, the government has sanctioned some strict measures such as a ban on mass gatherings, restricting movements, compelling overnight curfew, and shut down of the country’s internet services.
How This Affects Bitcoin Miners
With China’s intense crackdown against crypto mining, Kazakhstan became the ideal choice for various crypto mining companies. Kazakhstan was the top choice for many crypto firms thanks to its abundance of coal which provides the energy source to mine cryptocurrencies. Given the high influx of crypto mining firms into the country, available data indicates that Kazakhstan is hosting approximately 18% of the global Bitcoin hash rate.
However, since the time of the unrest, things have not been the same. According to BTC.com, the hash rate for the entire crypto mining pool has dropped by 14% as a result of this unrest. This is an indication that the Asian country is very vital in bolstering BTC’s high hash rate and the price of Bitcoin.
What’s the next move for Kazakhstan Miners?
Even with this unrest in Kazakhstan, 8BTCnews reported that several Bitcoin miners have zero plans of leaving the country. The report revealed that several crypto mining firms including BIT Mining are not considering a move away from the country and into North America. The report added that some miners using one way or the other have found ways to stay online despite the nationwide blackouts.
Colin Wu, one of the top Chinese crypto reporters, reported that several miners claimed the internet within the country was temporarily restored on the 7th of January. Not just that, the 4G network was also available for use and intermittently effective. Looking at how things are playing out, a lot of miners believe the unrest should last just for a few days.
One of the biggest Bitcoin mining firms that moved to Kazakhstan from China called BT Mining is also assessing its options. The company is evaluating the effect of this political chaos in Kazakhstan on mining operations both in the short and long term. However, after much consideration, the company decided against leaving the country.
A spokesperson for BIT Mining gave the latest update on BIT’s latest decision. The spokesperson asserted that it is highly unlikely that the company will be moving its mining machines to North America. Adding to the discussion, the spokesperson affirmed that the company will continue to money the situation as it unfolds.
The representative further remarked that BIT Mining’s primary mining activities do not happen in Kazakhstan in North America. The company already has several mid to high-end mining machines stationed in North America where its primary bitcoin mining activities take place. This gives BIT Mining enough time to evaluate the Kazakhstan situation since its primary mining activities are not in any way affected.
According to several reports coming from Kazakhstan, mining operations for several miners were unaffected. This is especially true for miners located in remote areas given the protests were concentrated in the metropolitan region of Almaty. From reports, no miners have been harmed or robbed since the protest began. But, mining activities have been interrupted since the protest began.
The latest data from NetBlocks, a network stability data provider suggests that the internet in Kazakhstan was shut down for approximately 36 hours. This caused a major disruption of mining activities with connectivity levels strutting at 5%.
Hopefully, the Kazakhstan goals can quickly curtail the situation and bring stability and order back into the country. The quicker this is done, the faster mining firms in Kazakhstan resume their mining operations.