In May 2021, China imposed a massive crackdown on Bitcoin mining in the Xinjiang Uygur Autonomous Region, Inner Mongolia Autonomous Region and Qinghai Province. All of these locations were the hub of Bitcoin Mining with huge facilities mining BTC. However, environmental concerns and other political considerations have convinced the Communist government in China to take the field against crypto mining and therefore the crypto sector in general.
The value of Bitcoin is falling
The move culminated in the massive drop in Bitcoin values (quotation BTC), and its values have plummeted by almost 50% from its all-time high. Most 2021 BTC and other crypto assets have seen a massive drop in their values. Only in November did the values of BTC slowly begin to rise and exceed the psychological barrier of $ 50.000.
Many mining plants have migrated to other friendlier nations, and one of them was Kazakhstan. However, recent turmoil and political stability have had a different impact on BTC, as Fortune.com reports. The government cut the internet, and Bitcoin mining was badly hit. There are fears that the situation could get out of control and that the chaos of May 19 could be repeated.
A large number of mining rigs expelled from China have migrated to Kazakhstan. They were drawn to the cheap energy produced by Kazakhstan's super dirty coal. Most of the mining was done clandestinely and outside the control of the local government. So it was impossible to deduce how much Bitcoin mining was done in the former Soviet Republic.
Is the world of cryptocurrencies waiting for another massacre like that of May 2021?
However, the world has had a brief inkling of the volume of mining in the nation. Violent protests forced the government to cut the internet, which severely affected all mining activities. When the internet is not there, miners cannot communicate with the Bitcoin network.
As a result, the "hash rate", the random codes that win the new Bitcoin rewards, collapses. According to crypto news and research site The Block, a full 12% of Bitcoin's global computing power had vanished. Furthermore, the data reveals that there has been a sharp drop in producers with operations in Kazakhstan.