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Kazakhstan unrest takes down a fifth of global bitcoin mining network

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The second largest bitcoin mining nation in the world has cut off internet access, slashing the amount of computing power dedicated to the cryptocurrency

Nationwide internet outages in Kazakhstan amid civil unrest have knocked almost a fifth of the world’s bitcoin miners offline. Vast numbers of mining groups that had relocated to the central Asian country after a state crackdown in China last year now find themselves once again out of action.

Bitcoin relies on a network of computers known as miners that solve mathematical problems to secure the currency, consuming vast amounts of electricity in the process. But without a working internet connection, the process is impossible.

China was once the global powerhouse of bitcoin mining with a market share of 75.5 per cent, but government restrictions in May last year caused the entire industry to relocate and seek friendlier states with cheap energy. Kazakhstan was an attractive location for these groups because of abundant cheap energy, but because fossil fuels, including coal, make up more than 90 per cent of the nation’s electricity supply, it did little to help bitcoin’s already large effect on the climate.

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