China bans Bitcoin mining, seeking to reduce energy consumption.
Bitcoin miners position themselves between energy and financial options.
Noti Hash is CryptoNoticias’ Bitcoin mining newsletter. It is published on our website every two weeks, being today, Thursday, October 7, 2021, the fifth edition to be published, at the height of block 703,979.
Bitcoin mining overcomes bans and criticisms based on its energy consumption, ensuring that its operations are environmentally and energy sustainable.
Despite bans in China, which have persisted since we published the previous issue of Noti Hash, several miners in other parts of the world invest, establish or resume operations.
Meanwhile, the hash rate (hash rate) or mining power of miners connected to Bitcoin continues to increase, along with the difficulty of mining, which increased for the sixth consecutive time in its most recent adjustment, which occurred on Monday, October 4, 2021.
China goes after Bitcoin miners, but they always have options
China continues to raise the fence against Bitcoin mining both from the government sector, and through pressure on the local private sector. On September 27, CriptoNoticias reported how Chinese authorities confiscated 10,000 Bitcoin Mining Equipment in Inner Mongolia Province.
On the other hand, they put pressure on the online store Alibaba to veto the purchase and sale of mining hardware on its portal, reducing the chances of small miners to acquire new or second-hand equipment, for example.
It was also known that the Huobi Pool mining pool withdrew 100,000 BTC from its reserves intended to sustain Bitcoin mining in China. This figure is equivalent to _ according to the CriptoNoticias price calculator.
Bitcoin miners make their way between clean energy options
The scarcity of energy resources in China could be behind the bans, but the exodus of the Bitcoin mining industry from China has led to its establishment and resurgence in other parts of the world.
In Iran, authorities lifted the veto against Bitcoin miners after four months of inactivity. In principle, September 22 had been established as the date to lift the ban, but CriptoNoticias was able to learn from local miners that that day they were still cautious, since a week before there were closures and confiscations of mining farms in the country .
Meanwhile, in El Salvador they are already starting the first Bitcoin mining operations from geothermal energy generated by volcanoes. This type of energy is considered worldwide as one of the cleanest, even free of direct emissions of carbon dioxide (CO2), according to studies.
As for the impact of Bitcoin mining, this activity is responsible for only 0.1% of total CO2 emissions globally, points out another extensive study that we reviewed in CriptoNoticias. Research indicates that Bitcoin is not a threat to the environment, in this sense.
In the United States, energy options for Bitcoin miners continue to be presented with various approaches. A company is mining BTC with energy generated from burning waste coal, which has been accumulated with decades of mining for this mineral in the state of Pennsylvania.
The Stronghold Digital Mining company explains that the extracted coal, which has been discarded as poor quality, pollutes the environment, land and local water sources.
To solve this problem, they have been buying waste coal reserves to burn it efficiently while generating bitcoins in your favor.
Among other options for miners in the United States, Miami Mayor Francis Suarez was reported to be planning to allow Bitcoin miners to settle near a local nuclear power plant to power his operations.
Miners try their luck between various business strategies
Regarding the business and financial aspects, CriptoNoticias reported on the biggest fundraising round in the history of a Bitcoin mining company.
Galaxy Digital managed to raise USD 431 million, the equivalent of 226,000 Bitmain Antminer S19 Pro ASICs. However, it became known that their plans are about expanding to other locations around the world where there is clean energy.
Although some companies may have good business strategies, their appreciation in the public stock market not necessarily better than BTC. In this sense, reported this media, the stock market of this industry can overcome the positive performance of the BTC market, which already reaches 55,000 in price.
Another well-known mining company, established in the United States, such as Marathon Digital Holdings, you are taking other routes to get your investments right. This company obtained a line of credit of USD 100 million by the American bank Silvergate Bank, which is part of the US Federal Reserve.
In your case, Marathon will use the amount available to expand the fleet of ASIC equipment it has, which is currently counted at 25,272 active miners, they said.
Hash rate and difficulty reflect the health of mining businesses
The hash rate o Bitcoin mining capacity reached 160 exahashes per second (EH / s), according to data from Glassnode. With this, the hash rate It is once again reaching a level not seen since June 2, 2021, its highest peak in the last three months, when China’s bans led to its steep decline in that season.
Regarding the difficulty of mining, its most recent adjustment represented an increase of + 4.71%, leaving this indicator at 19.89 T, according to BTC.com. The adjustment occurred on October 4, 2021 at the height of block 703,584.
Regarding the mining pools, and the distribution of their power, it is striking that during these two months F2Pool went from covering 9% of power to 15%, being the second largest Bitcoin mining pool in the world.
On the other hand, the graphs show that the rest of the pools such as Poolin, ViaBTC and Binance Pool have been displaced by F2Pool, reducing their power shares in the network.
A new space for Bitcoin miners in Buenos Aires, Argentina
Let’s go much further south, precisely to Buenos Aires, Argentina, where it was inaugurated JA Miners’ first Bitcoin mining location.
CriptoNoticias visited the store of cousins Juan Lautaro Aude and Juan Andrés Aude, located in the Palermo neighborhood of the Argentine capital, where this establishment was opened last Friday, October 1, 2021.
Miners offers advice and services for the installation of mining equipment, as well as the sale of this type of hardware. They do this despite difficulties in China’s supply chain, which is where most of these products are manufactured. We wish you every success!