Internet is down on Kazahstan, Bitcoin Hashrate drooped, Price affected?

Coin-1

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Quote from: yhiaali3 on January 11, 2022, 12:12:15 PM

I don't think it's the only reason, this is one of several other reasons why bitcoin dropped to this level:
- Because the Fed decided to raise interest rates in 2022
- Because of the MtGox case where about 100,000 BTC was pumped out
- Finally, because the Kazakh government cut off the Internet in the country, which led to the suspension of miners there.

You are certainly right, but I can add to this list another possible reason for the current dump in the price of BTC. About a month ago, a large centralized exchange, Bitmart, was hacked. The criminal withdrew Bitcoin and other cryptocurrencies worth about 196 million dollars. Perhaps the hacker has sent the stolen coins to mixers and is now selling BTC on different CEXes and DEXes.

As for the aforementioned Asian country that has a lot of miners, I do not see a significant drop in the hash rate on the chart. On December 31, 2021, the hash rate was 155 EH/s. Three days later, on January 2, 2022, the hash rate increased to 203 EH/s. Currently, the hash rate is 177 EH/s and looks stable.

Therefore, I think that the temporary Internet shutdown caused by the recent riot in this country hasn't had much of an impact on the global cryptocurrency market.

DdmrDdmr

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Although internet has certainly not been restored to how it was a week ago, before the events, there seem to be some improvements:

https://twitter.com/netblocks/status/1480713969295933443

A similar chart can be seen using Cloudflare’s Radar (bears different selectable timeframe filters):
https://radar.cloudflare.com/kz?date_filter=last_7_days

There are some timeframes where the service seems to be up and running. I wonder if the miners are keeping the equipment’s off, or whether they are back online during the available, yet intermittent, windows of internet service.

yhiaali3

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I don't think it's the only reason, this is one of several other reasons why bitcoin dropped to this level:
- Because the Fed decided to raise interest rates in 2022
- Because of the MtGox case where about 100,000 BTC was pumped out
- Finally, because the Kazakh government cut off the Internet in the country, which led to the suspension of miners there.
I think that all these reasons combined led to this sudden Dump of Bitcoin, of course the whales will not miss this great opportunity from their hands and will try to pressure the market more and more.

goldkingcoiner

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I think we are going to see a nice bounce back now that the internet has been restored in Kasachstan. But then again, the hashrate did not really drop all that much, so mostly the drop in price, as far as I see it, was due to a mass panic about the hashrate dropping that turned out to be nothing drastic. As always, these things are based on fud and its never worth selling your coin due to such circumstances.

TheNineClub

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I know that the price can get affected when something shifts like that, but I do wonder if we are looking into this a tad bit too much. The drop does correlate with predictions of price drops and us entering the bear market. As predictions like that are not an exact (and precise) science, it wouldn't be too hard to imagine that it could be off by a couple of months. If anything maybe the second winter with covid had more impact than this. If it did affect it, I doubt it did substantially or that the drop will stop if the situation in Khazakstan stabilizes.

OcTradism

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Quote from: Obito on January 10, 2022, 10:42:51 PM

Just pray that the tension in the country subsides if not ends because that's the reason why the country was plunged into an Internet blackout because the protesters are using the Internet as a means of communication and coordinating their attacks which the government found problematic, now I don't know which side is the right one in this case but I pray that the one who is right will prevail. This also made me show that Kazakhstan is a low-key the one of the big contributors in hashrate although I am not surprised as it's near China.

Internet in Kazakhstan is back and there is prediction that Bitcoin mining farms there will return for normal operations soon.

Personally, I think the chaos in Kazakhstan will last for a few months and it won't end too soon. So I expect big mining farms in this nation will make migrations to neighbor nations or to the USA.

Major Mining Pools’ Bitcoin Hashrate Nears Recovery as Kazakhstan’s Internet Is Partially Restored. As business companies, they should not bet that the chaos in Kazakhstan will be completely resolved.

Obito

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Quote from: riso2015 on January 10, 2022, 09:33:05 PM

the internet is dead in kazakhtan, it can affect the price of bitcoin, but I am very sure it is only temporary, the government cannot turn off the internet for a long time, because if they turn off the internet for a long time, it is certain that they will receive sanctions from UN, because the internet has now become a staple food, if there is no internet all activities will be cut off..

Just pray that the tension in the country subsides if not ends because that's the reason why the country was plunged into an Internet blackout because the protesters are using the Internet as a means of communication and coordinating their attacks which the government found problematic, now I don't know which side is the right one in this case but I pray that the one who is right will prevail. This also made me show that Kazakhstan is a low-key the one of the big contributors in hashrate although I am not surprised as it's near China.

bitterguy28

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Quote from: riso2015 on January 10, 2022, 09:33:05 PM

the internet is dead in kazakhtan, it can affect the price of bitcoin, but I am very sure it is only temporary, the government cannot turn off the internet for a long time, because if they turn off the internet for a long time, it is certain that they will receive sanctions from UN, because the internet has now become a staple food, if there is no internet all activities will be cut off..

Does Kazakhstan Holds big amount of Bitcoin ? i mean is there more people there accumulate and uses Bitcoin in daily manner? because if not then what can be the big effect of this to the world of crypto ?
though I find this issue being the reason why the market dumped recently , or this is just a coincidentally ?
but what ever the real reason yet it happened and now the market is dumping badly .

riso2015

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the internet is dead in kazakhtan, it can affect the price of bitcoin, but I am very sure it is only temporary, the government cannot turn off the internet for a long time, because if they turn off the internet for a long time, it is certain that they will receive sanctions from UN, because the internet has now become a staple food, if there is no internet all activities will be cut off..

uneng

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It makes sense the issue with bitcoin mining hashrate in Kazakhstan impacted the price negatively added to the news coming from the USA regards the increasement in interest rates by the Federal Reserve. When you have two important factors like those happening simultaneously, you can expect pessimism in the market without any doubts. And honestly it wasn't so bad as it could, because even though bitcoin has hit 39,000$ today, it immediately returned to 41,000$ without any difficult. It means such events impacted bitcoin negatively, but not so negatively to put it in a bad position like the one we have seen during the last bear season some years ago.

Vaskiy

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Quote from: hd49728 on January 06, 2022, 11:09:32 AM

Kazakhstan has increasing hashrate since the Great Migration from China but hashrate rises up and falls down. It does not make sense to panic only because hashrates fall down a little bit. Take into consideration that hashrate from Kazakhstan does not too big like from China mainland before the migration.

We see many capitulation on hashrate since 2009 but in long run, hashrate is upwards and it will continue like that.

Once after the ban from China, miners moved towards the neighbouring countries where they find the logistics to be easily done. As a result most of the mining firms got relocated to Kazakhstan, whereas mining machines got sold to Iran. As a result more hash is being generated from Kazakhstan contributing 18% of the global hash generated.

In the long run the network turns strong with the increase of hash. Now this has affected the entire network. Before the shut down of China, Kazakhstan contributed just 8% to the global hash. As mentioned once again the network will be powered once prevailing situation turns good.

jossiel

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Quote from: Ultegra134 on January 06, 2022, 05:45:50 AM

Quote from: jossiel on January 06, 2022, 02:47:39 AM

Connection to the price drop? Maybe yes and no.

I'm more curious why there's a need to touch the internet if the rally is all about the gas prices. But if the connection to the price drop of bitcoin is due to the hash rate, then eventually, as usual, it will recover.

I didn't even know that there's riot and protests that happened there and if I haven't seen this thread, I'm total ignorant of the current political issue there.

It's certainly frustrating, since there isn't a direct answer regarding what caused such drop. Is it concerning? Yes, is it worrying me? No, well, not yet. Waking up to such a drop is definitely scaring, I'm aiming for long-term returns, thus, I am not too worried yet.

Despite not being too affected by the situation, I'm hoping that the market recovers in the following weeks

We should get used to these fluctuations every time we wake up. I've experienced these drops several times after waking up and yeah, it's shocking and not a good morning as it may seems.

But what's concerning is the situation of their economy and the people there, we know that bitcoin will eventually recover and no matter how many FUDs or factors that makes it low, it will really go up again.

Yaunfitda

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Quote from: NeuroticFish on January 06, 2022, 03:01:48 AM

Imho the hash rate drop after Kazakhstan internet cut-off is much smaller than expected.
Maybe the traders expected something much bigger (because then the rest of the miners would get much cheaper coins), maybe there's something deeper we are missing.

On the other hand, the fear index was already looking bad and some were probably on the verge of selling. I am almost sure that the Kazakhstan news and the price drop have convinced some more sell.
Is it a bear trap? Are we really in trouble? I don't know. But I expect the current price change not be a good indicator because the liquidity on the markets is low.

Well when the price drops the last time the Chinese government started to ban crypto mining, the hash rate really drop so hard and so is the price and it went for months before we finally saw some bounce back to the hash rate and the price itself.

And maybe prior to the news, the sentiments is really turning into a bearish one and then waking up seeing the price going down hard, there could be some noob investors who suddenly push the sell button because they can't take the heat of seeing their portfolio going down.

hd49728

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Kazakhstan has increasing hashrate since the Great Migration from China but hashrate rises up and falls down. It does not make sense to panic only because hashrates fall down a little bit. Take into consideration that hashrate from Kazakhstan does not too big like from China mainland before the migration.

We see many capitulation on hashrate since 2009 but in long run, hashrate is upwards and it will continue like that.

pawanjain

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Thanks for making this thread. I was searching for a reason why BTC fell so sharply in such a short span of time and now I know the possible reasons.
Either it is the internet going down in Kazakh or the Feds increasing interest rates. In both the cases I think it is a temporary thing.
If bitcoin price has dropped because the internet is down due to protests then the price will increase as soon as the internet is up and running again.
If bitcoin price is down because of the increase in interest rates as the feds have announced then the interest rates will surely decrease in a few months or later.
So may be by then bitcoin price will start increasing again. So why to panic sell for such low prices when we have a new ATH to achieve.

franky1

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Quote from: amishmanish on January 06, 2022, 10:15:35 AM

Kazakhstan was all over crypto twitter today. From people making threads explaining that its not about Borat to the fact that its the 9th largest country by area in the world, and land-locked at that. There are speculations of this being some sort of power move from ~~the US~~ mufther ruzsia but the explanation is quite simple that the people are tired of their 30+ year old dictatorship.

fixed that for you Cheesy

your welcome (grammatically incorrect on purpose of comedical slavic accent)

as for stompix.. i emboldened and underlined a part of my last post.
might want to read it, and then look at the topic creators first post..

the stats are not from blockchains bad math guestimates.. (you!!!! love to use guessing/estimate sites as your stats source)
the stats are straight from pools own workload reports (actual hashrates)
the topic creators post mentions nothing about block numbers, nor network rate. nor difficulty nor blocktimes

..
edit after checking on a few things:
other topics elsewhere in the forum. with other users opinions seems to be where stompix seems to be getting his random numbers
(13%) https://bitcointalksearch.org/topic/bitcoin-134-drop-as-result-of-kazakh-government-resigns-5380126
(15%-20%) https://bitcointalksearch.org/topic/revolution-in-kazakhstan-caused-btc-price-hashrate-drop-5380053

but those are other topics. involving other people

stompix

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Quote from: franky1 on January 06, 2022, 10:05:38 AM

funny part is stompix first said "barely 2%,, now saying 6.25%"

Because my dear franky1 the block time is not exactly 10 minutes (did you know that?), we have different times between blocks (did you know that?), that's why we need adjustments (we have those, you know) , that's why the situation changes from one moment to another.
To give a clueless individual like you a hint of that, look at December 30th and you will see that the hashrate went from 175 to 143 and the next day only to go up to 179.
Probably because of the revolution in Bartovia that cut 12% of whatever.

So that your little mind could understand the difference, in the period 7 hours ago there were only 3 blocks mined in 73 minutes, this variation alone could trigger a 3% change in the reported hashrate. Got it?
So, next time do your homework..... before going to kindergarten, the teacher won't get mad at you anymore, it won't slap you and you will not come here angry at everyone and claiming bullshit just to feel special. You're not!

Quote from: amishmanish on January 06, 2022, 10:15:35 AM

Kazakhstan was all over crypto twitter today. From people making threads explaining that its not about Borat to the fact that its the 9th largest country by area in the world, and land-locked at that.

What has size to do with anything?
Congo is the 11th and I swear I don't remember a single thread about it on this forum.

amishmanish

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Kazakhstan was all over crypto twitter today. From people making threads explaining that its not about Borat to the fact that its the 9th largest country by area in the world, and land-locked at that. There are speculations of this being some sort of power move from the US but the explanation is quite simple that the people are tired of their 30+ year old dictatorship.

So apparently the miners cannot mine. While this drop in hashrate doesn't mean anything but Bitcoin is like that. It needs a trigger to move. Things have already been on a downtrend for quite sometime and this miner news was probably just a catalyst. This will never cease to amaze.

I will just DCA a bit to shore up my little BTC hodlings.

franky1

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again read the topic creators post.

it never mentioned 20% like you dream of... nor 13% nor 18% like you think i dream of (yet i never said 13 or 18)
it said clearly 12%

so you are making up 13%.18%.20% numbers that were never said by anyone bar you

funny part is stompix first said "barely 2%,, now saying 6.25%"
care to pull a new random number that was never mentioned in the topic creators post??

..
oh and the image in the topic creators post. is not from blockchains network hashrate..
its from looking at the number of hashes(asics work) of each pool.
it actually lists each pools work load.

but thanks again for playing. maybe try to use the information provided rather than make something up then double down on your made up numbers by finding another irrelevant thing.

the numbers were not based on blockchain.info network rate estimate
heck even blockchain are honest enough that it uses estimates and guestimates and assumptions.. so understand not to use those guestimate assumption sites as your proof/counter argument, especially when they are not used by others who use other sources with more accurate math, stats

stompix

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Quote from: franky1 on January 06, 2022, 09:05:29 AM

also 12% is not based on counting blocks.. its based on looking at the hashrate change from ~180 to ~160exa

And franky1 strikes again...
The hashrate is not calculated based on counting blocks, yeah right.

Hey ****, I have news for you:
The source for that claim is ycharts, who get the data from blokchain.info.
And if you would have ever in your life bothered to read something you would read this just below the hashrate estimator on blockchain.info
https://www.blockchain.com/charts/hash-rate

Quote

The hashing power is estimated from the number of blocks being mined in the last 24h and the current block difficulty. More specifically, given the average time T between mined blocks and a difficulty D, the estimated hash rate per second H is given by the formula H = 2 32 D / T

Understand? Of course, you don't, what a stupid question.
There is no counter of the hashrate like the number of fapings pornhub, the daily hashrate is determined by the number of blocks mined during that day, which right now is 135 for the last 24h, and with the basic mathematical skills even you should have you can see it is -6.25, not 13%, not 18% not whatever you picture in your wet dreams.
So follow up with what others have told you and find a ditch, the sooner the better!

Topic: Internet is down on Kazahstan, Bitcoin Hashrate drooped, Price affected? (Read 512 times)