In May 2021, China enforced a massive crackdown on Bitcoin Mining in Xinjiang Uygur Autonomous Region, the Inner Mongolia Autonomous Region, and Qinghai province. All these locations were the hub of Bitcoin Mining with huge rigs mining Bitcoins. However, the environmental concerns and other political considerations provoked the Communist Government in China to come down heavily on crypto mining and then to the crypto sector.
Bitcoin value falls
The move culminated with the massive fall in the values of Bitcoin (BTC), and its values tanked to almost 50% from its all-time high. Most of the 2021 BTC and other crypto assets saw a massive fall in their values. It was only in November that BTC values slowly started crawling up and crossed the psychological barrier of $50,000.
Many mining rigs migrated to other friendlier nations, and one such nation was Kazakhstan. However, the recent turmoil and political stability have impacted BTC differently reports Fortune.com. The Government has cut the internet, and Bitcoin mining has been badly affected. There are fears that the situation could spiral out of control, and a repeat of the May 19 Mayhem could happen.
A large number of mining rigs expelled from China migrated to Kazakhstan. They were lured by the dirt-cheap power made from super dirty coal in Kazakhstan. Most of the mining was done clandestinely and beyond the control of the Government there. Hence it was impossible to deduce how much Bitcoin mining was done in the former Soviet Republic.
Is the crypto world in for another massacre like May 2021?
However, the world got a brief inkling of the volume of mining in the nation. Violent protests forced the Government to cut the internet, which badly affected all mining activities. When the internet is gone, miners can’t communicate with the Bitcoin network. As a result, the “hash rate,” the random codes that win new awards of Bitcoin, collapses. According to crypto news and research site The Block, a complete 12% of Bitcoin’s worldwide computational power had vanished. Furthermore, data reveals that there has been a steep fall of producers with operations in Kazakhstan.
- Do Kwon Says Terra Collecting Snapshot Data For LUNA Airdrop
- Top ETH Whales Add These DeFi Tokens Amid Crypto Volatility
- Here’s Why Bitcoin (BTC) Could Be In for Another 50% Correction Under $15,000
- Another Top Exchange To Delist Terra UST Over Collapse
- Just-In: Vitalik Buterin No Longer A Billionaire As Ethereum Crashes
- Bitcoin Price: Key Metrics Show Surprising Insights
- After Terra Crash, Galaxy Digital CEO Warns Against Bottom Buying
- Shiba Inu (SHIB) Prices May Jump Next Week; Here’s Why
- Is Andre Cronje Back On Fantom? FTM Jumps 13%
- PlanB Says Bear Market Almost Over, Bitcoin (BTC) In Buying Range
- Apecoin Price Prediction 2022 : The future of Web3 and NFTs ?
- Ethereum Classic Price Prediction 2022 : Here’s What to Expect from ETC Price ?
- SAND Price Analysis: SAND Buyers Await Trendline Breakout To Go Long
- Avalanche Price Analysis: AVAX Sellers Tease $30 Fallout; Sell or Hold?
- Bitcoin Price Analysis: BTC Price Strikes $30000; Breakout Or Fakeout?
- TRX Price Analysis – Another Bullish Attempt For $0.075 Breakout
- KuCoin Price Analysis: Low Volume Rally Hints Pullback Opportunity in KCS
- Polkadot Price Analysis: Bull Trap May Drag DOT Price To $7.3 Mark
- APE Price Analysis: Triangle Breakout Eyes 55% Rise in APE
- Ripple Price Analysis: XRP Price Remains Pressured Below $0.45