A new week concludes for digital currencies, with major events that made headlines for the entire crypto ecosystem. In this customary weekly summary, the 5 most important news of the last seven days in the field of Bitcoin mining are presented.
It should be noted, that this is a new week in which China is part of important headlines. Compared with the previous weeks, interest in the subject seems to decrease despite the blows that the events still generate. Thus, it gives the impression that the crypto community wants to put that issue in the past quickly.
The “normal” news genre seems to be taking over the scene again. That is, those that report positive interest. Among them, it can be noted that some North American firms continue to increase their hash power. Among these, Terawulf stands out, which signed a purchase agreement for 30,000 ASICs with the manufacturer Bitmain.
The most important news about Bitcoin mining this week
As usual, this Bitcoin mining news roundup starts from the premise of the top 5. In this sense, among the most outstanding information, there is a ranking of those that had the greatest impact. These are the news headlines:
- Small Chinese power companies bankrupt after mining ban.
- Growth of the mining business in the West continues.
- Iranian authorities remain in a quandary regarding Bitcoin.
- Bitcoin Mining Council states that mining is operated with 56% renewable energy.
- Adjusting the difficulty of mining will be beneficial to miners.
Small Chinese power companies bankrupt after mining ban
The punitive measures carried out 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 hydroelectric plants have ceased operations due to lack of customers.
According to the media in the Asian country, 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 ‘useless’ state.
It should be borne in mind that these companies are unable to compete with the giant state plants. Therefore, the possibility of reorienting your offer for other uses is almost non-existent. Some of the vendors claim that by owning a power plant, “you can secretly mine Bitcoin.”
Growth of the mining business in the West continues
At the same time that Bitcoin mining continues to deflate in China, in the West it maintains its growth rate. This is because important companies in the branch continue to make large investments to increase their hash power. This week, two major 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 an additional 3 BTC daily. The company’s goal, he explains, is to reach 5,000 BTC in the medium term by increasing its hash power by 400%. According to the Canadian-based firm, they currently own about 3,800 digital currencies. Its hash power is 1.2 EH / s and its generation ranges between 6.2 and 7.3 bitcoins per day.
On the other hand, also in Canada, the TeraWulf company announced the purchase of some 30,000 ASICs of the S19 series. The agreement was made with the Bitmain company and the 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 a dilemma over Bitcoin
Bitcoin mining in Iran continues to be a headache for the government’s internal politics. On the one hand, the bitcoins generated are necessary in view of the abrupt fall in the inflow of foreign currency to the country. On the other hand, the generation of these currencies negatively impacts the environment due to the energy shortage crisis suffered by the Persian nation.
Punitive and unilateral sanctions imposed by the United States have aggravated the social and economic crisis in the country. To obtain energy, the authorities have been forced to burn fossil fuel. For their part, the most important cities suffer electricity rationing. The first to receive the burden of this situation were the miners.
On September 22, the 4-month emergency period of a total ban on Bitcoin mining expires. So far, it is not known if it will be extended. Meanwhile, the authorities granted some exceptional licenses to several mining companies.
Bitcoin Mining Council affirms that mining is operated with 56% renewable energy
The Bitcoin Mining Council conducted a survey of a significant number of companies dedicated to Bitcoin mining. Its mission: to determine the percentage of hash that is powered by renewable energy sources. This is an important step, as the results are positive for the digital currency mining business. Furthermore, they disqualify the narrative of the alleged “environmental contamination” of digital mining.
The overall result of the survey shows that 56% of the bitcoins generated are made with renewable energy sources. Likewise, it was known that the mining business is the one with the fastest transition to renewable sources that exists in the world. In other words, no industrial sector or any country is shifting towards green consumption at the same rate as virtual mining.
Although the results of the study have been criticized and described as “biased”, it is an important step. It should be noted that the universe of respondents does not include all miners, but simply those from the West. However, this is an important advance, considering that prior to this, there was no knowledge whatsoever about the status of the business.
Adjusting the difficulty of mining will be beneficial to miners
This Saturday, the expected adjustment of the difficulty of the Blockchain network for Bitcoin mining occurred. As expected, it was the adjustment with the lowest complexity in the history of the cryptocurrency created by Satoshi Nakamoto. The percentage of level drop was almost 28% and the network dropped from almost 20Q to 14Q.
Likewise, it is expected that the next adjustment will also be similar in decline, with the network being able to reach 10Q. The latter represents the level at the end of 2019. Behind everything this historical adjustment may mean, active miners are the main beneficiaries due to the high profitability of the business.
As has been repeatedly reported in CryptoTrend, the decline in Bitcoin’s hash power has been critical. Now, with 50% fewer miners working, those left have a better chance of getting and validating blocks. It is a great opportunity that brings the decrease of competition in the network.
Data to take into consideration
- The influence of China’s repressive measures against Bitcoin mining continues to influence major headlines.
- However, business growth in the West continues apace.
- Tens of thousands of mining machines continue to connect in countries like Canada and the United States.
- Fossil fuel-powered regions like Iran and China are doing 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.