This week closes with important events in the cryptocurrency universe. Once again, China stars in the most shocking news when it comes to Bitcoin mining. The shock caused by the ban on mining activity in the country, still affects everything related to the main cryptocurrency.
The price of Bitcoin has been one of the harmed by the most recent actions in the Asian country. However, the worst part has been the hashrate of the leading cryptocurrency. Thus, at the time of initiating the disconnections in the main farms, it was above 130 EH / s. Since then, it has dropped to less than 77 EH / s.
But not only Bitcoin has seen its mining affected. The same, although to a lesser extent it has been happening with the second best cryptocurrency, Ethereum. In that sense, the most prominent of the altcoins, has also suffered some important statistics, especially in regards to the drop in the price of graphics cards.
These were the most shocking news related to Bitcoin mining
Among the most important information of this week in the field of Bitcoin mining, the five most outstanding news stand out. They are chosen by CriptoTendencia and presented in order of priority. These are the headlines:
- Bitmain suspends the sale of mining equipment.
- Bitcoin hashrate falls to 2019 levels.
- Graphics card prices are reduced due to events in China.
- Bitfarms started trading on the New York Stock Exchange.
- The antecedent of Plattsburgh that could bring problems to mining in the United States.
Bitmain suspends the sale of mining equipment
One of the most important manufacturers of Bitcoin mining equipment, Bitmain, announced the interruption of sales due to punitive measures in China. Importantly, the Asian firm did not offer an estimated date to resume sales.
Among the reasons argued by the company for suspending its commercial activities indefinitely, is the threat of the authorities. Likewise, this has led to the selling pressure in the secondary market, pushing back the price of mining equipment. In that sense, Bitmain seeks to lower that pressure with the suspension of the sale of its products.
It is important to note that the suspension of sales of Bitmain ASICs does not generate a significant impact. For more than a year, the firm’s sales have been practically restricted to a group of large mining companies. Consequently, the bulk of miners must turn to the used equipment market or other manufacturers.
Bitcoin hashrate falls to 2019 levels
Among the most worrying news brought by the ban on Bitcoin mining in China is that related to hashing power. The computing power of the most popular of digital currencies continues to decline rapidly. The measures of the Chinese authorities are the main responsible for this decline.
Last week, CT reported that the computing power of the Bitcoin Blockchain network had fallen to 2020 levels. Now, as the massive disconnections have continued, the hash power of Bitcoin has dropped to 77 EH / s. This is the lowest level since November 26, 2019.
Some analysts are concerned about this decline, as it could endanger network security. At the same time, it should be considered that this is a temporary effect of disconnections in China. The positive part of this story is that miners’ prices have dropped considerably. In that sense, access to the business has become less expensive.
Graphics card prices drop due to events in China
But it’s not just Bitcoin mining that has seen a major shakeup due to punitive measures in China. The impact has also been felt in the mining of the most important of the altcoins, Ethereum. Thus, the prices of graphics cards to mine this currency have fallen by a significant percentage.
It should be considered that the manufacturers of these cards have the main market in China. Therefore, since mining is under attack in that country, people prefer to avoid confronting the authorities. The result is that sales have dropped to levels not seen in years and, as a result, the prices of these products drop considerably.
An important aspect to highlight is that graphics cards (GPU) are not exclusive for Ethereum mining. In fact, these are manufactured for computing activities very different from digital mining. However, its preferred use is for the extraction of a varied number of cryptocurrencies. Of these, the most important is the native currency of the Ethereum Blockchain network.
Bitfarms started trading on the New York Stock Exchange
Canadian Bitcoin mining company Bitfarms started operations on Nasdaq this week. The news was known last Monday, when the company’s shares started trading at $ 3.90 each. It is a new firm in the cryptocurrency extraction branch that operates on the New York Stock Exchange.
With the symbol BITF, this company, which is one of the largest Bitcoin mining companies in the world, will offer its stock products. It should be taken into consideration that the Canadian firm generates 1% of the world’s BTC. In addition, as is known, practically all of its farms are powered by renewable energy.
So far in 2021, Bitfarms has generated about 1,000 BTC with renewable energy. This fact gives an added importance to what could be the mining company model of the future. The increasing migration of miners from China to the United States could mean a change in the trend in the patterns of carbon emissions into the atmosphere.
Plattsburgh’s precedent that could lead to problems for US mining
One of the most important news related to Bitcoin mining, can be extracted from the statements of a former mayor of Plattsburgh. It is a small town in upstate New York, which had a traumatic experience with the miners.
In an interview with CNBC, Colin Read, former mayor of the aforementioned town, assures that the contribution of the miners is almost nil. It stands out that large companies installed in the city only generated a handful of jobs. At the same time, it considers that the disadvantages are greater, since the high demand for energy causes the rise in the prices of the bills.
Although Read considers himself a cryptocurrency enthusiast, he claims that embracing the Chinese diaspora cannot be taken lightly. «The issue is not whether we should do it, but to do it well”He stated, warning that Bitcoin mining, while a major business, should not be overvalued.
Data to take into consideration
- Lowering the selling pressure is one of Bitmain’s goals in suspending its business activities in China.
- The drop in prices for mining-related products extends to graphics cards used to mine ETH and other altcoins.
- Canadian Bitcoin mining company Bitfarms debuted on Nasdaq on Monday and is the latest firm of its kind on the New York Stock Exchange.
- Not everyone welcomes the reception of Chinese miners in the United States. One of them is the former mayor of the small town of Plattsburgh, in the state of New York.
- Bitcoin’s hash power is down to levels not seen since the end of 2019. It now stands at 77 EH / s and is expected to continue declining.