The second-biggest country for bitcoin mining lost its internet access, taking as much as 15% of the network offline.
Kazakhstan is home to coal mines that provide a cheap and abundant supply of energy, which is a major incentive to miners who compete in a low-margin industry, where their only variable cost is typically energy.
Internet service has since been restored in the country, but the entire episode lays bare two significant facts about the state of the bitcoin mining industry. For one, the bitcoin network is resilient to the point that it doesn't skip a beat, even when a substantial portion of miners are unexpectedly taken offline. Second, the U.S. may soon see a fresh influx of crypto miners looking to avoid future disruptions.
When Beijing kicked out all its bitcoin miners in May 2021, Kazakhstan seemed like a logical destination. Beyond the fact that it was right next door, the country is also a major energy producer.
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