Noti Hash: Bitcoin mining leaves behind negative effects of China’s bans

Noti Hash: Bitcoin mining leaves behind negative effects of China's bans

Noti Hash is CryptoNoticias’ Bitcoin mining newsletter. It is published on our website every two weeks, being today’s Thursday, November 5, 2021, the seventh edition to be published, at the height of block 708.300.


Since we at CriptoNoticias started publishing this newsletter, miners have been recovering from the onslaught of China’s bans. The decrease in the mining power or hash rate, as well as the difficulty, set off alarms at that time due to the panic generated by China.

However, Bitcoin mining has been superimposed week after week, difficulty adjustment after another, and now its processing capacity has returned to May 2021 levels, targeting all-time highs again.

Currently the Bitcoin hash rate stands at 175 exahashes per second (Eh / s), according to Glassnode. For its part, according to BTC.com, the difficulty had a positive adjustment of 7.8% on October 31, 2021, at the height of block 707,616, remaining at 21 T, a figure that had not been seen since last October 30. May.

Noti Hash: Bitcoin mining leaves behind negative effects of China's bans
Last 8 Bitcoin difficulty settings, the most recent being October 31
from 2021. Source: BTC.com

While all this is happening, China seems to doubt its decisions, opening a public consultation until next November 21 on the ban on mining, although it is not certain that it will change its mind.

China banned Bitcoin mining in all its provinces due to high energy consumption, which caused miners to migrate, among other places, to neighboring Kazakhstan, which is now the second largest mining country in the world.

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However, this country also began to apply restrictions on the electricity consumption of Bitcoin mining, we reported in CriptoNoticias on October 22, so it is not known what the future of activity in these lands holds.

Meanwhile, researchers published a list of the countries with the cheapest electricity to mine cryptocurrencies. Among them are Venezuela, Paraguay, the United States and Canada.

Mining pools: tough competition

Noti Hash: Bitcoin mining leaves behind negative effects of China's bans
Distribution of Bitcoin mining pools according to their processing power. Source: BTC.com

As mining companies open new farms, and the power of Bitcoin increases thanks to the increasing number of miners operating each day, mining pools are struggling to maintain their dominance.

While the standings have not changed much historically, this week it is striking that the mining pool Luxor it will sneak into the top 10. Luxor, originally launched in 2018, offered mining farm software tools, but now also has its own growing pool.

Notably, CriptoNoticias reported that an undetermined number of mining pools controls more than 12% of the Bitcoin hash rate. However, these “ghost” pools are nothing to worry about. Possibly these are new pools that are emerging driven by small ventures that have closely followed the growth of mining in the last year.

Noti Hash: Bitcoin mining leaves behind negative effects of China's bans

Mining pools seek to give the best benefits and profitability to their clients: Bitcoin miners around the worldAlthough there are not very popular ideas among developers to remove the mempool from Bitcoin and assign transactions directly to miners, something that would totally change the business model (and how the protocol works).

Mining companies do not stop their growth

But this does not distract mining companies, which are growing by leaps and bounds as evidenced by the hash rate and difficulty. Such is the case of Bitfarms, which claimed it would double its hash rate by 2022 by adding 21,000 new Bitcoin miners to its operations, we said on CryptoNews.

Bitfarms seeks to expand in various parts of the world, including Argentina, but the magnitude of its investments in that country already beginning to worry some politicians, we inform.

For its part, we also report how companies Marathon and Riot have the largest presence in Bitcoin mining in the US, having received more than 44,000 ASIC devices between both companies, also having astronomical increases in its value in the stock market.

This is how Bitcoin and cryptocurrency mining companies go on the stock market:

Noti Hash: Bitcoin mining leaves behind negative effects of China's bans
Source: Nasdaq and Bloomberg

Mining from other networks or blockchains

Photo of the week

This week’s photo is an excerpt from the mini documentary Mining Bitcoin with the Navajo Nation, produced by Compass Mining Company.

This audiovisual piece briefly narrates how members of the Navajo people in the United States are making better use of their electrical installations with Bitcoin mining, as well as accessing opportunities that allow them to escape poverty.

mining-bitcoin-navajo-people
Members of the Navajo people work at facilities located on the Navajo Nation reservation, between the states of Utah, Arizona and New Mexico. Source: Compass Mining

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