At the same time as the Bitcoin mining business develops, events related to it expand. In this summary, we present you the most important points that made the news during the last 7 days.
It should be noted that the news events related to the mining of Bitcoin, and other major cryptocurrencies, are channeled at several main points. Some of them are regulations, massive ASIC purchases or the opening of new large farms.
In the first case, that of regulations, it should be noted that Bitcoin mining is an illegal business in a variety of countries. Most of the nations that prohibit mining activity do so on the grounds that the state is unable to afford electricity.
These are the most outstanding Bitcoin mining news
This summary of the most important information, related to Bitcoin mining, focuses on these 5 points that made the news during the past 7 days.
- Malaysian police detain four people engaged in Bitcoin mining, alleging “power theft”.
- Bitcoin’s hash rate remains stable despite the increase in the price of this cryptocurrency.
- The Halving of Bitcoin and the new version of Ethereum 2.0, mean an unprecedented change for virtual mining.
- Jameson Lopp says that sooner or later China will stop dominating Bitcoin mining.
- Is it possible to mine Bitcoin and be profitable in the current post halving conditions?
An illegal activity
Despite criticism from environmental groups about an alleged polluting capacity of Bitcoin mining, it can be said that it is a business that does not harm anyone. Other opinions seem to have some States, who maintain an iron policy against the extraction of cryptocurrencies.
The most recent case has happened in Malaysia, with the authorities detaining 4 people, being accused of stealing electricity.
Hash rate stays on your site
The recent increase in the price of the main cryptocurrency has not led to an increase in the Hash rate. This contradicts the logical assumptions of how Bitcoin mining works.
As is known, the increase in the price generates extra profits for the miners, which allows them to cover operating expenses more comfortably. In addition, it allows them to reconnect equipment that is unproductive when the price is low. The current price of Bitcoin is just below $ 12,000, it seems not to be enough for this.
A radical change in mining
Mining of both Bitcoin and other cryptocurrencies as we know it is in flux. Two of the weight factors that accelerate this evolution have been the Halving of Bitcoin on the one hand, and on the other, the new version 2.0 of Ethereum.
As has been widely reported in CryptoTrend, last May’s Bitcoin Halving has cut rewards in half. This has brought a multiple change in the entire Bitcoin infrastructure.
On the other hand, the new version 2.0 of Ethereum, means a totally radical change. Now the extraction of ETH will be done with the PoS protocol, instead of the current PoW, which will take the miners of this cryptocurrency out of the game.
A matter of time before China stops being the epicenter
One of the community members “Cypherpunk”, Jameson lopp, assured that there are many factors that will lead to China ceasing to be the epicenter of Bitcoin mining.
Some of these facts could be that chip production is developing rapidly outside of Asia. Likewise, energy sources abound in countries outside this continent. All this, in his opinion, could lead to a future loss of dominance by China.
Profitability of mining in a post-Halving period
The Halving has been one of the strongest blows that Bitcoin mining has received. The almost natural price increase that comes after this has yet to come. This has made many miners obsolete.
At the same time, this has forced miners to adapt to new conditions that are harsher for them. The arrival of the new latest generation equipment has not been massive due to Bitmain’s internal problems. This has sparked a race to find the places where electricity is cheapest.
Data to take into consideration
In this summary of the most important news about Bitcoin mining, the following data stands out:
- If you are thinking of getting into the Bitcoin mining business, you should consider that the countries with the cheapest energy are Serbia and Croatia. If you are in Latin America, the cheapest option is Venezuela.
- Companies like Samsung are at the forefront of chip manufacturing, which can be seen as a counterweight to China’s dominance.
- Both Bitcoin and Etehereum are mined with the PoW protocol. However, with the new ETH 2.0 update, the second one will drop it.
- The 4 people dedicated to Bitcoin mining, arrested in Malaysia, would have been stealing energy from the state electricity company Sarawak Energy Berhad (SEB).
The information in this content has been extracted from reliable sources detailed below.:
1- Professional content management by the authors of CriptoTendencia.
2- External sources: Malaymail.com, Coinmetrics.com.