Yesterday, Wednesday, January 5, Kazakhstan felt quite uncomfortable in several respects. This is significant for the crypto scene to the extent that the country now ranks second in the mining hashrate. The rise in fuel prices had caused a real tumult among the population. The president of the country’s cabinet resigned. However, prior to that, the state-owned Kazakhtelecom had disconnected the Internet in the country. As a result, network activity collapsed to 2 percent of its daily highs.
The impact on mining activities followed immediately. According to data compiled by YCharts.com, the total hash rate of the Bitcoin network decreased by 13.4 percent in the hours after it closed. Now, Kazakhstan is so important that it accounts for 18 percent of the global hash activity on the Bitcoin network. The NetBlocks network data provider reported Wednesdaythat Kazakhstan is still in the midst of a nationwide internet blackout one day after the riots.
The price of gas doubled overnight in Kazakhstan
In a televised speech by President Tokayev, he appealed to citizens and Russia for help in “saving the state.” The protests were initially sparked by anger over rising fuel prices. The background for this is that a few days earlier, the Kazakh government had raised the maximum prices for liquefied petroleum gas, which is used as a fuel for automobiles. Adapting to market conditions meant that the price doubled overnight and sparked violent protests.
The riots quickly spread and were also directed against President Kassym-Jomart Tokayev’s predecessor, Nursultan Nazarbayev. He officially resigned in 2019 after almost three decades of rule. However, due to the opaque conditions, it apparently continues to move the threads in the background.