- The recent drop in Bitcoin hashrate is a result of an internet outage occurring due to ongoing riots in Kazakhstan.
- As per the Blockchain Association and Data Center Industry, the effect on miners and Bitcoin exchange would be short-term, and Kazakhstan will continue to work to be the most appealing place for cryptocurrency mining.
- The Association has been working towards investments for developing the region and looks forward to getting a decision in favor.
The 13.4% drop in Bitcoin hash rate due to internet outages caused by the ongoing riots in the country has been commented on by the Blockchain Association and Data Center Industry of Kazakhstan. The President of Blockchain Association, Alan Dorjiyev, said that the riots occurring in a few big cities hadn’t affected any region where the official cryptocurrency mining organizations are set up.
Dorjiyev also said that the changes that were observed in Bitcoin hashrate on 5 January did emerge from a short-term internet outage during an anti-terrorism campaign. At present, the companies and members of the Association are working normally. He further explained that they are working to make a positive contribution to the lives of the region’s residents where the data centers have been established, and it is a part of their social responsibility.
Kazakhstan – The Most Attractive Place For Crypto Mining
The Blockchain Association thinks that the effects on cryptocurrency miners and the Bitcoin exchange rate are short-term due to the ongoing situation. Also, Kazakhstan will continue to be one of the most appealing areas for cryptocurrency mining and its development. There is an ongoing positive discussion about regulating the industry with the concerned state entities at the legislative level. The restrictions which were introduced earlier on electricity supply for white miners have now been given a relaxation.
The Blockchain Association and Data Center Industry of Kazakhstan bring about 70% of mining organizations together in the region. The organization aims to develop a suitable environment for sustainable development of cryptocurrency mining in Kazakhstan, which includes equal availability of electricity, transparent regulations for the industry, eliminating illegal mining activities, the possibility of selling cryptocurrencies, and presenting opportunities to develop CO2-neutral crypto mining.
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The Association’s Investment To Develop The Region
One of the members of the Association, a representative of the company, BTC.KZ, said that the state had heard us since we have been working at full potential in the past five days, and they hope that the situation would go in their favor. Other than just business development, the Association claims that they are actively working for investments in the region’s developments. The member of the Association also said that since they want to develop the crypto industry in Kazakhstan and thus, social responsibility is now their priority.
It should be noted that several mining farms started to export equipment from the country due to earlier power outages. Dorjiyev expects that future state decisions would contribute to maintaining Kazakhstan’s investment appeal worldwide and would boost the development and transformation of the mining sector in Kazakhstan. He is pleased that the dialogue has been established and hopes to see a positive outcome for all entities.
Even earlier, the Blockchain Association and Data Center Industry of Kazakhstan have introduced action plans for the industry’s development that focused on developing crypto exchanges, eliminating illegal mining activities, and developing sustainable development to minimize the effects on the environment.
The President Sees Cryptocurrencies As An Objective Factor
The President of Kazakhstan, Kassym-Jomart Tokayev, at the end of 2021, conveyed his willingness to develop regulations suitable for the development of cryptocurrencies, cryptocurrency exchanges, and mining. The President said that cryptocurrencies shouldn’t be ignored as they are an objective factor, and their potential should be overlooked to influence the present financial system. He further explained that this is why efforts should be continued to develop a regulatory environment for establishing cryptocurrency exchanges in the country.
These are the reasons why the President of Kazakhstan is at the highest to work towards the adoption of cryptocurrencies, introducing stablecoin in the form of “digital tenge,” developing cryptocurrency exchanges, and supporting the development of FinTech overall.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.