{"id":4160,"date":"2022-01-08T01:58:26","date_gmt":"2022-01-08T01:58:26","guid":{"rendered":"http:\/\/egrowonline.com\/?p=4160"},"modified":"2022-01-08T01:58:26","modified_gmt":"2022-01-08T01:58:26","slug":"bitcoin-network-power-slumps-as-kazakhstan-crackdown-hits-crypto-miners","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=4160","title":{"rendered":"Bitcoin network power slumps as Kazakhstan crackdown hits crypto miners"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<div class=\"ArticleBody__context_widget___3kuGm9 ArticleBody__element___3UrnEs\">\n<div class=\"ContextWidget__content___3ZY0XN\">\n<ul class=\"Summary__summary___3hzotM\">\n<li class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__medium___1ocDap Text__body___FD7azi Body__base___25kqPt Body__body_alt___2fJULs Summary__point___1F_MwF\">Bitcoin &#8220;hashrate&#8221; drops after Kazakhstan internet shutdown<\/li>\n<li class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__medium___1ocDap Text__body___FD7azi Body__base___25kqPt Body__body_alt___2fJULs Summary__point___1F_MwF\">Country accounted in Aug. for 18% of global bitcoin output power<\/li>\n<li class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__medium___1ocDap Text__body___FD7azi Body__base___25kqPt Body__body_alt___2fJULs Summary__point___1F_MwF\">Share has grown sharply following China crackdown<\/li>\n<li class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__medium___1ocDap Text__body___FD7azi Body__base___25kqPt Body__body_alt___2fJULs Summary__point___1F_MwF\">Kazakhstan cut internet after deadly protests<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<p data-testid=\"paragraph-0\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">LONDON, Jan 6 (Reuters) &#8211; The global computing power of the bitcoin network has dropped sharply as the shutdown this week of Kazakhstan&#8217;s internet during a deadly uprising hit the country&#8217;s fast-growing cryptocurrency mining industry.<\/p>\n<p data-testid=\"paragraph-1\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">Kazakhstan became last year the world&#8217;s second-largest centre for bitcoin mining after the United States, according to the <a target=\"_blank\" href=\"https:\/\/ccaf.io\/cbeci\/mining_map\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__medium___1ocDap Text__large___1i0u1F Link__underline_default___MkI7S8\" rel=\"noopener\">Cambridge Centre for Alternative Finance<\/a>, after major hub China clamped down on crypto mining activity.<\/p>\n<p data-testid=\"paragraph-2\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">Russia sent paratroopers into Kazakhstan on Thursday to help put down the <a target=\"_blank\" href=\"\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__medium___1ocDap Text__large___1i0u1F Link__underline_default___MkI7S8\" rel=\"noopener\">countrywide uprising<\/a> after violence spread across the tightly controlled former Soviet state. Police said they had killed dozens of rioters in the main city Almaty, while state television said 13 members of the security forces had died.<\/p>\n<div class=\"RegistrationPrompt__container___1zFX4Y RegistrationPrompt__inline___1dXxON ArticleBody__mobile-only___2w_rXL\">\n<div class=\"RegistrationPrompt__text-content___2uMAHH\">\n<h5 class=\"Text__text___3eVx1j Text__white___2ncio9 Text__medium___1ocDap Text__heading_5___3obGkm Heading__base___1dDlXY Heading__heading_5___3VJIV0 RegistrationPrompt__heading___wc_GPj\">Register now for FREE unlimited access to Reuters.com<\/h5>\n<p><button class=\"Button__button___3FFWBE Button__secondary___jc-Lu5 Button__round___1BK77J RegistrationPrompt__button-text___3ZNlNC\" type=\"button\"><\/p>\n<p><span class=\"Text__text___3eVx1j Text__inherit-color___30vgWE Text__bold___2wRTrQ Text__default___1Xh7Yh TextButton__medium___1vp1Wy\">Register<\/span><\/p>\n<p><\/button><\/div>\n<\/div>\n<p data-testid=\"paragraph-3\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">The internet was on Wednesday <a target=\"_blank\" href=\"\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__medium___1ocDap Text__large___1i0u1F Link__underline_default___MkI7S8\" rel=\"noopener\">shut down<\/a> across the country in what monitoring site Netblocks called &#8220;a nation-scale internet blackout&#8221;.<\/p>\n<p data-testid=\"paragraph-4\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">The move would have likely prevented Kazakhstan-based miners from accessing the bitcoin network.<\/p>\n<p data-testid=\"paragraph-5\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">Bitcoin and other cryptocurrenices are created or &#8220;mined&#8221; by high-powered computers, usually at data centres in different parts of the world, which compete to solve complex mathematical puzzles in a highly energy-intensive process.<\/p>\n<p data-testid=\"paragraph-6\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">In August last year, the most recent data available, Kazakhstan accounted for 18% of the global &#8220;hashrate&#8221; &#8211; crypto lingo for the amount of computing power being used by computers hooked up to the bitcoin network.<\/p>\n<p data-testid=\"paragraph-7\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">In April, before China&#8217;s latest clampdown on bitcoin mining, the figure was just 8%.<\/p>\n<div class=\"ArticleBody__element___3UrnEs\" data-testid=\"gallery-0\">\n<div class=\"InlineGallery__detail___d_ous2\">\n<div class=\"Caption__caption_container___EQn2wz InlineGallery__caption___2WMAhn\">\n<p class=\"Text__text___3eVx1j Text__white___2ncio9 Text__regular___Bh17t- Text__small___MoVgdT Body__base___25kqPt Body__caption___1g8_ry Caption__caption_text___zghlXk Caption__collapsed___3-_67m\">A man stands near the building of the Kazakhstan state TV channel, which was torched during protests triggered by fuel price increase in Almaty, Kazakhstan January 6, 2022. REUTERS\/Pavel Mikheyev<\/p>\n<p><button class=\"Button__button___3FFWBE Button__ghost___FEywA_ Button__round___1BK77J Caption__collapse_button___3XmdBX Caption__collapsed___3-_67m\" type=\"button\"><\/p>\n<p><span class=\"Text__text___3eVx1j Text__inherit-color___30vgWE Text__bold___2wRTrQ Text__default___1Xh7Yh TextButton__medium___1vp1Wy\">Read More<\/span><\/p>\n<p><\/button><\/div>\n<\/div>\n<\/div>\n<p data-testid=\"paragraph-8\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">The hashrate at major crypto mining pools &#8211; groups of miners in different locations that team up to produce bitcoin &#8211; including AntPool and F2Pool was on Thursday at 1215 GMT down around 14% from its level late on Tuesday, according to data from mining firm BTC.com. Neither pool immediately responded to a Reuters request for comment,<\/p>\n<p data-testid=\"paragraph-9\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">CRACKDOWN ON CRYPTO MINING<\/p>\n<p data-testid=\"paragraph-10\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">Yet a drop in hashrate isn&#8217;t necessarily supportive for the price of bitcoin.<\/p>\n<p data-testid=\"paragraph-11\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">Bitcoin fell below $43,000 on Thursday, testing multi-month lows after investor appetite for riskier assets fell as the U.S. Federal Reserve leant toward more aggressive policy action. <a target=\"_blank\" href=\"https:\/\/www.reuters.com\/markets\/currencies\/bitcoin-ether-near-multi-month-lows-following-hawkish-fed-minutes-2022-01-06\/\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__medium___1ocDap Text__large___1i0u1F Link__underline_default___MkI7S8\" rel=\"noopener\"> read more <\/a><\/p>\n<p data-testid=\"paragraph-12\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">The more miners on the network, the greater the amount of computer power is needed to mine new bitcoin. The hashrate falls if miners drop off the network, in theory making it easier for the remaining miners to produce new coin.<\/p>\n<p data-testid=\"paragraph-13\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">Kazakhstan&#8217;s crypto mining farms are mostly powered by ageing coal plants which themselves &#8211; along with coal mines and whole towns built around them &#8211; are a headache for authorities as they seek to decarbonise the economy.<\/p>\n<p data-testid=\"paragraph-14\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">The Kazakh government said last year it planned to crack down first on unregistered &#8220;grey&#8221; miners who it estimates might be consuming twice as much power as the &#8220;white&#8221; or officially registered ones.<\/p>\n<p data-testid=\"paragraph-15\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">Its energy ministry said last year &#8220;grey&#8221; mining may be consuming up to 1.2 GWt of power, which together with &#8220;white&#8221; miners&#8217; 600 MWt comes up to about 8% of Kazakhstan&#8217;s total generation capacity. <a target=\"_blank\" href=\"https:\/\/www.reuters.com\/business\/energy\/crypto-boom-strains-kazakhstans-coal-powered-energy-grid-2021-11-10\/\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__medium___1ocDap Text__large___1i0u1F Link__underline_default___MkI7S8\" rel=\"noopener\"> read more <\/a><\/p>\n<p data-testid=\"paragraph-16\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">The country&#8217;s uprising began with protests in the west of the country against a New Year&#8217;s Day fuel price hike.<\/p>\n<div class=\"RegistrationPrompt__container___1zFX4Y RegistrationPrompt__inline___1dXxON\">\n<div class=\"RegistrationPrompt__text-content___2uMAHH\">\n<h5 class=\"Text__text___3eVx1j Text__white___2ncio9 Text__medium___1ocDap Text__heading_5___3obGkm Heading__base___1dDlXY Heading__heading_5___3VJIV0 RegistrationPrompt__heading___wc_GPj\">Register now for FREE unlimited access to Reuters.com<\/h5>\n<p><button class=\"Button__button___3FFWBE Button__secondary___jc-Lu5 Button__round___1BK77J RegistrationPrompt__button-text___3ZNlNC\" type=\"button\"><\/p>\n<p><span class=\"Text__text___3eVx1j Text__inherit-color___30vgWE Text__bold___2wRTrQ Text__default___1Xh7Yh TextButton__medium___1vp1Wy\">Register<\/span><\/p>\n<p><\/button><\/div>\n<\/div>\n<p><span class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__default___1Xh7Yh SignOff__text___2onKdN\">Reporting by Tom Wilson; Editing by Emelia Sithole-Matarise<\/span><\/p>\n<p class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__regular___Bh17t- Text__large___1i0u1F Body__base___25kqPt Body__large_body___3g04wK ArticleBody__element___3UrnEs\">Our Standards: <a target=\"_blank\" href=\"https:\/\/www.thomsonreuters.com\/en\/about-us\/trust-principles.html\" class=\"Text__text___3eVx1j Text__dark-grey___AS2I_p Text__medium___1ocDap Text__large___1i0u1F Link__underline_default___MkI7S8\" rel=\"noopener\">The Thomson Reuters Trust Principles.<\/a><\/p>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.reuters.com\/markets\/europe\/bitcoin-network-power-slumps-kazakhstan-crackdown-hits-crypto-miners-2022-01-06\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin &#8220;hashrate&#8221; drops after Kazakhstan internet shutdown Country accounted in Aug. for 18% of global bitcoin output power Share has grown sharply following China crackdown Kazakhstan cut internet after deadly protests LONDON, Jan 6 (Reuters) &#8211; The global computing power of the bitcoin network has dropped sharply as the shutdown this week of Kazakhstan&#8217;s internet [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4161,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[37],"tags":[50,2890,62,259,3215,521,175,1152,947],"class_list":["post-4160","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin","tag-bitcoin","tag-crackdown","tag-crypto","tag-hits","tag-kazakhstan","tag-miners","tag-network","tag-power","tag-slumps"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2022\/01\/NNQCNNYBZZNY3FDOEVQCOIR2NE.jpg","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/4160","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4160"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/4160\/revisions"}],"predecessor-version":[{"id":4162,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/4160\/revisions\/4162"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/4161"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4160"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4160"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4160"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}