Bitcoin’s Hashrate Drops Significantly Amid Kazakhstan Civil Unrest

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The ongoing civil unrest in Kazakhstan has sparked curiosity in many over the effect it could have on the global Bitcoin hashrate. These worries arise as Kazakhstan is believed to control at least 18% of the global hashrate, according to a recent report from the Cambridge Center for Alternative Finance (CCAF).

NABCD Asserts Bitcoin Unaffected by Kazakhstan Crisis

That said, analysts report that on a 30-day basis, the Bitcoin hash power has dropped by about 15% in the last ten days. Fresh reports from local news agencies indicate that the civil unrest in the country has eased and that the country’s Data Center Industry and Blockchain Association of Kazakhstan (NABCD) has asserted that the civil unrest did not affect digital currency miners. However, many have argued that the recent issues in Kazakhstan have seeped into Bitcoin miners’ capacity over the last week.

Only five days ago, BTC exchanged hands at $46,700 per unit. However, the benchmark cryptocurrency has since plummeted by over 12% in value. That said, as of the last thirty days, the best performing mining rig controlling over 100 terahash per second (TH/s) realized between $25 to $30 per day, per machine, at an electricity rate of $0.12 per kilowatt-hour. Today, this same mining rig only realizes $14.87 per day, at press time, using the same energy consumption rate. With that, it is clear that the drop in BTC price has, indeed, affected the cryptocurrency’s hash power, as the hashrate has now dropped by 15%.

Another reason behind the 15% hashrate drop is the latest mining difficulty adjustment. BTC mining difficulty recorded an increase on January 8, as the mining difficulty jumped by 0.41%. While this seems like a small hike, this adjustment has brought BTC close to its highest difficulty point, following three consecutive positive adjustments.

Furthermore, analysts forecast that the mining difficulty could adjust positively, for the fourth consecutive time, in the next eleven days by 0.67% from its current level.

 

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.