A new week concludes for digital currencies, with major events making news for the entire crypto ecosystem. In this customary weekly roundup, the top 5 highlights of the last seven days in the Bitcoin mining arena are presented.
It should be noted that this is a new week in which China is part of important headlines. In comparison with previous weeks, interest in the subject seems to be decreasing despite the tailings that the events still generate. Thus, it gives the impression that the crypto community wants to leave that issue in the past quickly.
The “normal” news genre seems to take over again in the panorama. That is, those that report positive interest. Among them, it can be noted that some American firms continue to increase their hash power. It stands out among these, Terawulf, which signed an agreement to purchase 30,000 ASICs with the manufacturer Bitmain.
The most important news about Bitcoin mining this week
As usual, this summary of news about Bitcoin mining, part of the premise of the 5 most important. In this sense, among the most outstanding information, there is a hierarchy of those that had the greatest impact. These are the news headlines:
- Chinese small electricity companies ruined after mining ban.
- Mining business growth in the West continues.
- Iranian authorities remain in a dilemma regarding Bitcoin.
- Bitcoin Mining Council claims that mining is operated on 56% renewable energy.
- Adjusting the difficulty of mining will be beneficial for miners.
Chinese small electricity companies ruined after mining ban
The punitive measures implemented by the Chinese authorities against mining, have an impact that goes beyond Bitcoin. The negative consequences appear to affect a significant number of energy-related businesses. As a result, dozens of small hydropower plants have ceased operations due to lack of customers.
According to the Asian country’s media, the number of offers from these companies has skyrocketed on sales platforms. The country’s surplus energy, which was used by miners, will now be wasted for lack of use. A major clean energy infrastructure, capable of generating dividends, is now being sold in a state of “uselessness”.
It must be borne in mind that these companies are unable to compete with the giant state power plants. Therefore, the possibility of redirecting its offer for other uses is almost nonexistent. Some of the sellers claim that by owning unan power plant, ” you can secretly mine Bitcoin.”
Mining business growth in the West continues
At the same time that Bitcoin mining continues to deflate in China, in the West it maintains its pace of growth. This is because major companies in the branch continue to make large investments to increase their hash power. This week, two important firms such as Hut 8 and TeraWulf stood out.
The CEO of the first of these companies, Jaime Leverton, assured that, in August, Hut 8 will mine 3 additional BTC daily. The company’s goal, he explains, is to reach 5,000 BTC in the medium term with the increase of its hash power by 400%. According to the Canadian-based firm, they currently hold about 3,800 digital currencies. Its hash power is 1.2 EH / s and its generation is around 6.2 to 7.3 bitcoins per day.
On the other hand, also in Canada, the company TeraWulf, announced the purchase of about 30,000 ASICs equipment of the S19 series. The agreement was made with the company Bitmain and batches of machines will begin to arrive at the firm’s facilities between January and August 2022. It should be noted that this company has generated 90% of its coins with renewable energy.
Iranian authorities remain in Bitcoin dilemma
Bitcoin mining in Iran remains a headache for the government’s domestic policy. On the one hand, the bitcoins generated are necessary in the face of the abrupt fall in the income of foreign currency to the country. On the other hand, the generation of these currencies, negatively impacts the environment due to the crisis of energy shortage that the Persian nation suffers.
The punitive and unilateral sanctions imposed by the United States have aggravated the social and economic crisis in the country. In order to obtain energy, the authorities have been forced to burn fossil fuel. For their part, the most important cities suffer from electricity rationing. The first to receive the burden of this situation were the miners.
September 22 expires the emergency period of 4 months of total ban on Bitcoin mining. So far, it is not known if it will spread. Meanwhile, the authorities granted some exceptional licences to several mining companies.
Bitcoin Mining Council claims mining is operated on 56% renewable energy
The Bitcoin Mining Council conducted a survey of a significant number of companies engaged in Bitcoin mining. The mission of the same: determine the percentage of hash that is fed from renewable energy sources. This is an important step as the results are positive for the digital currency mining business. In addition, they disqualify the narrative of the supposed “environmental pollution” of digital mining.
The overall result of the survey shows that 56% of the bitcoins generated are made with renewable energy sources. It was also known that the mining business is the fastest transition to renewable sources in the world. In other words, no industry sector or country is shifting towards green consumption at the same pace as virtual mining.
Although the results of the study have been criticized and described as “biased”, this is an important step. It is noted that the universe of respondents does not cover all miners, but simply those from the West. However, this is an important development, considering that prior to this, there was no knowledge about the status of the business.
Adjusting the difficulty of mining will be beneficial for miners
This Saturday, the expected adjustment of the difficulty of the Blockchain network for Bitcoin mining occurred. As expected, it was the setting with the lowest complexity in the history of the cryptocurrency created by Satoshi Nakamoto. The level drop percentage was almost 28% and the network dropped from almost 20T to 14T.
Likewise, it is expected that the next adjustment will also be similar in fall, with the network reaching 10T. The latter represents the level of the end of 2019. Behind all that this historic adjustment may mean, active miners are the main beneficiaries due to the high profitability of the business.
As has been repeatedly reported in Crypto trend, the decline of Bitcoin’s hash power has been critical. Now, with 50% fewer miners working, those left have a better chance of getting and validating blocks. This is a great opportunity that brings the decline of competition in the network.
Data to consider
- The influence of China’s repressive measures against Bitcoin mining, continue to exert influence on the main headlines.
- However, business growth in the West continues to accelerate.
- Tens of thousands of mining machines continue to connect in countries like Canada and the United States.
- Fossil-fueled regions like Iran and China do the mining business a favor by limiting it.
- CMB report shows that 56% of bitcoins are generated with renewable energy.
- For its part, the Bitcoin mining business is the one that makes the transition to sustainability the fastest.
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