Noti Hash: Ethereum removes mining and forks; Bitcoin miners build farms

Graph on the difficulty of mining.

Noti Hash is CriptoNoticias’ Bitcoin mining newsletter. It is published on our website every two weeks, being today, Thursday, September 22, 2022, the 29th edition to be published, at block 755,255.

The mining community around the world has been attentive, during the last two weeks, to the elimination of mining in Ethereum.

Meanwhile, Bitcoin miners focused on consolidating their growth strategies. For example, with the reinvestment of the rewards obtained in the improvements of its different infrastructures.

Thus, the last network difficulty adjustment registered an increase of 3.4% compared to the previous period. This represents a new historical maximum, expressed in the figure of 32.04 T, proof of the confidence of the miners in the participation of Bitcoin mining to secure the network.

Graph on the difficulty of mining.
For the fourth consecutive period, the Bitcoin network has seen an increase in mining difficulty. Font: brains.

Within the politics of the United States, a report from the White House on the reduction of greenhouse gas emissions was released. This fact generated an opinion matrix on the possible ban on Bitcoin mining in that country, where the greatest mining activity in the world is concentrated. No part of the report ensures that there will be a ban in the future.

For its part, the original people of the Mohawk, from Canada, are investigating alternatives to mine Bitcoin. A mining company is willing to collaborate without this community having to make a prior investment. They are also studying how to get electricity from the state-owned company Hydro Quebec.

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Bitcoin mining farms

A mining mega-farm began operations in Argentina, in the Cordovan city of Río Cuarto, in the center of the country. In its first phase, the Bitfarms farm will operate with 10 megawatts of power. With the passage of time they hope to increase that electrical power

On a different note, CriptoNoticias reported the third raid on a cryptocurrency mining farm by the AFIP in Argentina. In the place they found 142 mining rigs with 1,355 graphics cards installed. The authority indicates that the farm did not have the necessary patrimonial support to be able to acquire all the mining hardware.

On the other side of the world, in Australia, a Bitcoin mining farm was launched that works 100% with solar energy (5 megawatts). The Minister of State for trade and investment commented that it is the “beginning of a new economy”.

Bitcoin mining equipment

Bitcoin mining equipment is at 2020 prices, just before the bull market began. This means an 80% retracement from the highs reached 5 months ago.

The elimination of mining in Ethereum: the Merge

There were still many hours to go before the arrival of the Ethereum Merge, which meant the elimination of ETH mining, when the miners decided to mine until the last minute. So the debate among the miners was whether to migrate to another network or sell the mining equipment, once the time was right.

The Ethereum Merge occurred on September 15, at 06:42 UTC, at the height of block 15537393. With this event, the merger of two block chains took place. That is, two ETH transaction records. From that moment on, the method of securing the network passed from the hands of the miners to the hands of the validators, who stake to have that privilege.

A chronicle by Alfredo Oquendo, a reporter for CriptoNoticias, says goodbye to Ethereum mining and is grateful for having made him a bitcoiner.

In this same tone, three experts gave their opinion on whether Ethereum mining or staking is better.

The recommendations did not stop during the days before and after the Merge. For example, several former miners recommended turning off the equipment and waiting, after the Merge.

Networks like Axie Infinity -and other games- also decided to wait for the first few hours to pass, after Ethereum implemented the change in its algorithm.

For its part, EVGA, a well-known manufacturer of computer components, announced that it will not manufacture any more graphics cards after the Merge. In part, this decision stems from the deteriorating relationship between this company and Nvidia.

During the first hours after the Merge, different networks experienced an increase in their hashrate, which proved that the main decision of the Ethereum miners was keep mining a cryptocurrency. Cryptocurrencies such as Ethereum Classic, Ergo and Ravecoin received the first waves of hashrate and miner participation in their respective networks.

The Ethereum Fork

On the other side of the story is EthreumPoW, the fork of Ethereum which aims to welcome cryptocurrency miners who were left out of the Ethereum project. At the time of the fork almost 20 pools allowed mining through this network, which allows miners to operate with ASIC and GPU equipment.

Just a day after it went live, the EthereumPow network showed the first signs of trouble. Apparently the problem was in the chain ID (identifier of the network). This identifier matched another chain ID, that of the Smart Bitcoin Cash testnet.

It didn’t take long for the network to experience another problem. This time related to a replication attack that allowed hackers to steal 200 ETHW, as reported by CriptoNoticias. Due, the value of this cryptocurrency fell 30% in a matter of minutes.

In CriptoNoticias we made a tutorial that describes how to mine EthereumPoW (ETHW) in a few steps, after the Ethereum Merge.

Picture of the Week

The Bitfarms facilities, in Río Cuarto, Argentina, are already operational. They work with 10 megawatts of capacity in their initial phase.

Learn more about Bitcoin mining in our Cryptopedia

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