With the price of Bitcoin again above USD 19,000, the advance of the mining of this cryptocurrency continues unstoppable. To the same extent that large companies continue to invest their capital in the main virtual currency, the fever for its extraction continues to rise.
In this last particular case, the initiative of Square, the company of Jack Dorsey, CEO of Twitter, stands out. This firm has been one of the pioneers in investing in Bitcoin, obtaining great profits this year 2020. Not satisfied with that, the board of directors begins to explore mining.
But, on the other side of the coin, the possibility of a falling price of Bitcoin stands out. The fact could be connected with the prediction of the miners’ sale intention. In other words, the market is likely on the verge of a coin sell-off by miners.
The progress of Bitcoin mining in the week
During the last seven days, the news related to the advancement of the mining of the most popular of cryptocurrencies, has been abundant. In this summary, we present you a selection of the five most important pieces of information about this futuristic business. These are the titles:
- Square will invest $ 10 million in green energy for mining.
- Miners’ sell-off risk is the highest in three years.
- Province of Pakistan asks the government to legalize Bitcoin mining.
- Miners in Yunnan province suffer power outage from authorities.
- Electricity subsidy for miners in Venezuela will come to an end.
Square doesn’t settle for Bitcoin gains in 2020
Twitter CEO Jack Dorsey’s Square firm, after a successful year in its forays into cryptocurrencies, is now taking a new step. In this sense, to the benefit obtained with its decided advance in the investment of capital in Bitcoin, now the investment in the mining of this digital currency will be added.
For this, it was known that the firm will inject 10 million US dollars into green energy. With the creation of these infrastructures, the mining process will begin by a firm that just this year took the first step and chose to invest part of its funds in Bitcoin.
The other objective of the firm, they explained in a statement, is «supporting companies that help drive the adoption of renewable energy within Bitcoin mining». It should be noted that the announced infrastructure would be ready by 2030.
Risk of Bitcoin sell off on the doorstep
Another of the news related to the advancement of the Bitcoin mining business that impacted in the week, is a possible sell-off. In this case, it is a piece of information that worries the crypto community, as the rally above 20K could be postponed once again.
The hypothesis is collected from the CryptoQuant data, according to which, Bitcoin miners are making massive sales. The metrics displayed by the analysis firm, track the magnitude of Bitcoins that leave the miners’ wallets. According to it, it is the highest in three years.
This could suggest that a coin sell-off is underway. In this sense, this would negatively affect the price of Bitcoin. However, shortly after this metric was known, the price of the pioneer cryptocurrency has risen again and seems to seek consolidation above 19K.
Pakistan Province Wants Bitcoin Mining Legalized
According to local media, the legislative body of the province of Khyber Pakhtunkhwa, asked the federal government of Pakistan to legalize mining. The report highlights that cryptocurrencies could be the substitutes for printed money in the future and, therefore, should begin to be considered by the State.
On his Twitter account, the politician and advisor to the technology ministry, Zia Ullah Bangash, praised the initiative. He explained that it is a firm resolution so that «the government takes steps to legalize cryptocurrencies and crypto mining in Pakistan».
In the aforementioned province, the first step related to the advancement of Bitcoin mining would be taken. It is noteworthy that Pakistan is one of the countries that has taken the longest to address the issue of digital assets.
Local authorities again lash out at miners in Yunnan
Attacks against miners in China’s Yunnan province have been common. The most recent of them comes from information highlighted by CoinTelegraph, according to which, regional authorities have cut electricity service to mining farms.
The original source of the information was the well-known Chinese reporter Colin Wu, who on his blog and Twitter account offered details of the event. Consequently, the Baoshan city authorities ordered the electric utility companies to refrain from servicing the mining centers.
Despite this, the reporter assures that it is a policy isolated from the local authorities. In this sense, it would not be related to any project in Beijing to stop the advance of the mining business in the Asian nation.
Is free electricity for miners in Venezuela over?
As highlighted in CryptoTendency, Venezuela is probably the country with the cheapest electricity on the planet. The low costs of the service, both for homes and industrial, are so ridiculous that they could be considered free. Due to this, in a short time the South American nation entered the TOP 10 of countries with the largest number of farms.
However, recently the outcome of information that had been rolling on the networks was known for some time. The miners of the city of Valencia, the epicenter of the business, reported suspension of the electricity service and the call for a meeting with the new energy minister, Nestor Reverol. Little was known about the case, until a few days ago with a note on the portal of the state VTV.
Thus, in the note, an agreement is announced between the Electric Corporation (Corpoelec) and the Superintendency of Crypto Assets and Related Activities (Sunacrip). «The agreement will allow digital mining to generate benefits for all”Explained Joselit Ramírez, from Sunacrip. In this way, the miners will have to pay for the service, although the amount was not specified, which will be announced in a future ruling.
Data to take into consideration
- The advance of Bitcoin mining continues its march at the same rate as the strengthening of the price of the cryptocurrency.
- Yunnan Province of China is still harmful to Bitcoin miners. Now the Baoshan city authorities cut power to farms.
- According to data from CryptoQuant, Bitcoin is on the verge of a massive sale by miners.
- Venezuela’s state policy of free electricity for all will shut out Bitcoin miners.
- Square will invest $ 10 million in clean energy infrastructure to provide Bitcoin mining services.