How the protests in Kazakhstan sparked the bitcoin crash

How the protests in Kazakhstan sparked the bitcoin crash

Internet-savvy Kazakh youth seek to break free from Soviet legacy

“Young people in Kazakhstan, especially in Almaty, probably want similar freedoms as Ukrainians, Georgians, Moldovans, Armenians, who have also vented their frustrations over the years with authoritarian regimes,” said Tim Ash, emerging markets strategist. , in an opinion collected by the Cointelegraph newspaper.

Said youth saw the bitcoin mining boom in recent months thanks to the settlement of mining companies, hailing from China, after the Chinese government announced a more severe ban against the crypto industry in September 2021.

Cheap coal lured bitcoin miners

Canaan, for example, a manufacturer of bitcoin mining equipment, recently expanded its presence in Kazakhstan. The company from Hangzhou, China, was attracted by low energy prices and especially by cheap and abundant coal from Kazakhstan.

In mid-2021, China also suffered energy rationing due to a shortage of coal. This led, the world’s fifth largest crypto mining pool, to settle in Kazakhstan, where this fuel is cheap.

With information from Reuters and Cointelegraph.