In this customary summary about Bitcoin mining with the most important news of the week, there are cases that do not stop being outstanding for the crypto universe. A new fall in the value of Bitcoin seems to be one of the protagonists of these seven days.
Regarding the cryptocurrency extraction business, the information has not been less moved. Among them is the continued persecution by the police against miners in countries such as Venezuela and Iran. The funny thing about this is that, in both nations, mining is presented as legal.
Other information of important impact is the punishment of a ghost mining company that was listed on the New York Stock Exchange. It should be taken into consideration that the information related to this business has been abundant, so this summary tries to take the five most prominent.
Top 5 Bitcoin Mining News of the Week
In this customary weekly summary, the information related to Bitcoin mining that shone during the week on the main portals is taken. Some information could contemplate important mining facts of other cryptocurrencies other than BTC.
- Criminalization against miners is exacerbated in Venezuela.
- Iran rejoices in the benefits of mining as it continues to close farms.
- Chip shortage becomes the main obstacle to the development of the mining business.
- Nasdaq-listed company faces class action lawsuit on suspicion of being a ghost.
- Cryptocurrency Firo suffers 51% attack.
Criminalization against miners worsens in Venezuela
The South American nation has made headlines in terms of Bitcoin mining for the second week in a row. A new procedure against a miner was practiced, this time in the city of Barinas in the state of the same name.
According to local media, the Criminal Investigation Service (SIP), attended some complaints from neighbors. The legal representatives showed documents emanating from the National Superintendency of Crypto Assets and Related Activities (Sunacrip), which authorize mining. However, officials alluded to other “failures” to proceed to seize the equipment.
This is a new case of criminalization of Bitcoin mining in less than two weeks in Venezuela. Faced with this fact, the authorities and groups of miners are in an active campaign to protect this business. In addition, they call on the miners to operate with all legality to facilitate defense efforts against possible abuses.
Iran rejoices in the benefits of mining as it continues to close farms
In a situation somewhat similar to that of Venezuela, but on an even larger scale, the persecution of illegal miners in Iran increases. In the Persian nation, the business is also legal, but the control of the authorities is tight. The miners do not enjoy subsidized electricity and pay increasing taxes.
In addition, those who are dedicated to mining Bitcoin, are obliged to sell their coins to the central bank. In other words, private cryptocurrency trading is punishable by law. This has not stopped authorities from celebrating the great benefits of mining.
According to specialized media, there are about a thousand miners legally established in that country. A similar number have been raided by police for going underground amid worsening business conditions.
Chip shortage becomes the main obstacle to the development of the mining business
Among the news related to Bitcoin mining that stood out this week was one from Samsung. The South Korean company would be close to building a plant for the manufacture of 3 nanometer chips in the United States. It is a fact that has brought hope to the cryptocurrency mining business.
The growing demand for ASIC equipment for mining has left major manufacturers like Bitmain unanswered. In fact, this Asian company announced that they do not have available lots of equipment until the end of August 2021. Among the shortcomings to build these machines, are the chips.
It is expected that, for this year, the shortage of equipment will lead to a disproportionate increase in the same in the parallel market. At the same time, this means a brake on the development of mining activity, which is in full expansion.
Nasdaq-listed company faces class action lawsuit on suspicion of being a ghost
The Bit Digital company, dedicated to providing services related to Bitcoin mining, has been the epicenter of a scandal. She has been sued for lying about her scope. Based on the arguments in the class action lawsuit, the firm claimed that it owned farms in China.
Following an investigation by J. Capital Research, it was concluded that the company lacks infrastructure in that nation. It should be noted that the company’s website claims to own 40,000 mining rigs with a hash rate of 2,253 PH / s.
Now, the company’s shares have fallen more than 25% after the news of the fraud broke. The plaintiffs are seeking compensation for 1,000 shares of the firm purchased in December for more than $ 20 each. They also ask for compensation payments for damages.
Cryptocurrency Firo suffers 51% attack
Another of the important news of the week, has to do with mining, but this time not Bitcoin, but Firo. It is a privacy-based currency that was previously known as Zcoin. The point is that it suffered a 51% attack.
In a message On its Twitter account, the firm advised its holders to stop all transactions. He asked to stay in this state until the network returns to normal.
According to the Firo programmers, the attack was made possible by a vulnerability in the currency’s Blockchain. In that sense, the project had not implemented chainlocks in the main network. It is a layer of protection that protects the network against 51% attacks.
Data to take into consideration
- Regulations against Bitcoin mining are beginning to show their face in countries like Iran and Venezuela.
- According to analysts, in Iran it seeks to turn Bitcoin into an appendage of the government to violate the unilateral sanctions of the United States.
- A plant of Samsung, a chip maker, could provide a medium-term answer to the mining equipment supply problem.
- The high demand for mining equipment could become the main obstacle to business development.