BRL 1 billion worth of bitcoin mining machines seized

Charlie Taylor

O Kazakhstan confiscated about BRL 1 billion in bitcoin mining machinesafter months in which the Kazakh government has been waging a war against the miners, due to the competition in the use of energy resources.

Outdated energy infrastructure and mining exodus

THE energy infrastructure from Kazakhstan is outdateddating back to the Soviet era and its capacity is already naturally limited to meet the needs of the Kazakh people, which was compounded by a exodus of BTC miners from China, after the prohibition.At the time, the government of the neighboring country was very receptive to the entry of bitcoin mining machines and the region began to be responsible for about 18% of the entire hashrate generated on the network.Map showing the hashrate percentage in each region, highlighting Kazakhstan with 18% of the network in July 2021.Source: to the Rest of World website, power plants can also reserve generating capacity for their own needs at reduced prices – which can go to companies in favorable private agreements and reduce the amount available for distribution. All this infrastructure seemed attractive to the mining activity, but over time the problems were revealed and worsened with macro-environmental issues.Know more: internet hack at the Kazakhstan he can affect Bitcoin mining

Bitcoin Miners Under Attack

Suffering economic and popular pressureKazakhstan began to carry out targeted attacks against mining farms through power cuts, tougher regulationscontrol and oversight of the companies involved with the business. The execution of the activity was becoming more difficult and many farms even reached abandon bitcoin mining machinesdue to the high cost of transport and the impossibility of continuing mining. During the attacks, many companies began to provide energy surplus for miners of bitcoin illegally.

Kazakhstan closes over 100 farms, seizes bitcoin mining machines

In the most recent event, Kazakhstan acted in more directly against mining farms, registering the closing of 106 companies specialized in the activity. Of the 106, 55 were closed “voluntarily” by their owners – according to official sources – and 51 on a compulsory basis.According to the government announcement, were seized 67,000 bitcoin mining machines valued at approx. 100 billion tenge (about 1 billion reais).To date, the network has not been impacted by transaction delays or hashrate generation. Some negative effect is expected in the next few days. In addition, the mining industry has suffered a major loss of capital and this could impact the price in some way, since these entrepreneurs will need to raise net capital whether to buy new BTC mining machines; or to deal with the legal proceedings arising from the closure; or for personal capitalization. The regulatory threat and geographic limitation also impact on the decentralization of the networkbringing more centralization within this subsystem and limiting the number of regions where it is possible mine bitcoin.Know more: Understand what is decentralization once and for allRead more:NovaDAX is full of news! One of the largest cryptocurrency exchanges in Brazil has now ZERO withdrawal fees in real! NovaDAX also counts zero fees for Bitcoin transactions and more than 110 listed currencies, with cash withdrawal available and high liquidity. Cryptocurrencies with the best rates on the market! Simply activate the free Novawards program and enjoy reduced rates of up to 75%. Discover the NovaDAX Card and order yours now.

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