The Weekly Wrap - Kazakhstan, Interest Rates, Solana

Jan 7, 2022 - 3 min read

1. Kazakhstan Offline after civil unrest

The Facts:

  • Sharpe rise in fuel prices lead to political unrest in Kazakhstan, with people taking the streets after the government removed price caps just days prior, which doubled the price of liquified petroleum overnight.
  • The president’s cabinet resigned in response, but not before the state-owned Kazakthelecom shut down the nation’s internet, with network connectivity falling to 2%.
  • Kazakhstan is the second largest country by mining hash rate, which is why the overall Bitcoin hash rate declined by 4%.

Why it’s important:

  • The low energy prices have attracted mining companies to open shop. Miners will closely follow the development of the situation.
  • Blockchair, a widely used block explorer also went offline due to infrastructure problems following the shut-down in Kazakhstan.

2.Fed indication of interest rates being raised

The Facts:

  • On Wednesday the minutes of Decembers Federal Reserve policy meeting were released.
  • Indications of officials to potentially lift short-term interest rates as soon as March, put the markets into a frenzy.
  • Traditional markets tanked with the Nasdaq falling 3.3% and the S&P 500 down 1.9%.
  • The yield on the 2-year Treasury note reached its highest level since February 2020.

Why it’s important:

  • Not only traditional markets were impacted by the released minutes.
  • Even though many claim crypto to be an inflation hedge, the market largely turned red.

3. Solana down again?

The Facts:

  • It has been heavily discussed in the crypto community if Solana has suffered the a DDoS (Distributed Denial-of-Service) attack in the last six months.
  • The project denies the claims and presents increase in transactions and reducing network capacity as the reason for failed transactions.
  • The majority of the transactions on Solana are vote transactions between validators, meaning that consensus mechanisms are counted as transactions.

Why it’s important:

  • Recurring outages and congestion issues could possibly hurt the reputation of the network, portraying itself as the world’s most performant blockchain.
  • The reliability of a blockchain is a core prerequisite that many expect to be matched in order to guarantee stability and accessibility to products built on top of it.

The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.

Message in the Bitcoin genesis block mined 13 years ago.

Number of the Week

Bitcoin Fear and Greed Index at lowest point since July 2021.

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