The first week of the year was another FUDish period courtesy of the traditional media.
In this opportunity the target was the situation that is unfolding in Kazakhstan due to its political instability.
As a bit of background, let’s remember that after the ninth Bitcoin Ban in China in the middle of 2021, most if not all miners that used to operate in the Asian country had to flee and move their operations in different nations.
Some with the required economic capacity came to the United States but other chose a more neighboring solution such as Kazakhstan.
Unfortunately, the country is immersed in a difficult political situation that is affecting their population is dramatic ways. One of them was the complete interruption of the Electricity and Internet services in the entire country.
It took no time to certain sources to highlight that the bitcoin mining operation was interrupted and even to venture into tagging the cryptocurrency as “weak” due to this cause.
However, they failed to say a couple of important things.
The first is the fact that if these services are halted yes, the bitcoin mining process will be interrupted but so does the service of banks, traditional financial markets, private businesses, hospitals and government in general. The disruption is not going to discriminate between the new and old world.
On that point, there are a couple of projects that are working hard in offering a reliable radio signal-based alternative to solve the communication side of the bitcoin mining service and there is a growing tendency in connecting mining rigs to either solar or wind powered off grind electricity sources.
And the second situation not mentioned in the media is the fact that as opposed to the traditional financial system of a country where if the power grid gets down, the entire system will be down for the duration of the outage, the Bitcoin network will continue to be operational outside the borders of the troubled nations because its miners are spread over most of the countries of the world.
In fact, since the above-mentioned China Ban, the hash rate which measures the power and complexity of the network and is an indicator of its health has reached an all-time high due to in great part to the relocation of mining facilities to places such as Texas and Florida in the United States.
In summary, to take down the entire Bitcoin Network you need to take down the entire Internet service of the world and I will leave up to you to estimate the chances of that.
Yours in Crypto.