The mining of the most popular of digital currencies, Bitcoin, was featured in the main news portals related to this universe. The reasons behind this are varied, among which positive, worrying and negative facts for the cryptocurrency mining business stand out.
Thus, some of the countries where great hash power is concentrated (understand the number of machines operating), have intensified the persecution. Among these nations, China stands out, a country in which more than half of the total computing power of Bitcoin is found. On the other hand, there is Iran, a nation in which mining was banned for a period of 4 months.
But if the news related to the environmental impact can be considered negative, it is also important to talk about the positive ones. In the extraction of the second most important cryptocurrency in market capitalization, Ether, it was revealed the gains that the activity has left to the manufacturer of graphics cards NVIDIA.
These were the news that left Bitcoin mining as the protagonist
In this weekly summary, we present you the five most important pieces of information related to the crypto mining business. Among the most outstanding news of this week, which placed Bitcoin mining as the protagonist in crypto portals, the following stand out:
Due to blackouts, Iran bans digital mining for 4 months. Ethereum mining reports significant profits to manufacturer NVIDIA. Discussion about environmental impact in China triggers migration of miners. Elon Musk and Michael Saylor at the forefront of green Bitcoin mining. Power miner loses strength in the face of attacks by the Chinese authorities.
Due to blackouts, Iran bans digital mining for 4 months
The Islamic Republic of Iran is one of the first countries to legalize Bitcoin mining. Paradoxically, it is one of the nations with the highest number of attacks against miners by the authorities.
An intense drought in the Persian country has caused serious problems in the electricity supply. Low infrastructure capacity and outdated systems have prevented Tehran from successfully tackling energy problems. However, accepting responsibilities does not seem to be in the authorities’ plans.
In this way, they have accused miners of being among the main factors behind supply failures. In that sense, it has decided to ban Bitcoin mining until September 22. With a 4-month hiatus, the Iranian government plans to use the energy dedicated to mining to cover other sectors.
It should be noted that, according to the authorities, more than 80% of the country’s miners operate without a license.
Ethereum mining reports significant gains to manufacturer NVIDIA
Another news that has left virtual mining, not Bitcoin but Ethereum, as the protagonist, is the profits of NVIDIA. As it is in the public domain, the extraction of the second most important of cryptocurrencies is done with graphics cards.
In that sense, the manufacturers of these cards such as AMD or NVIDIA, are among the main favored. In the case of the second of these aforementioned firms, profits would have doubled during the first quarter of 2021. NVIDIA’s profits have been 155 million US dollars, according to its own reports.
GPU mining is one of the most profitable businesses after ASICs, which are used in Bitcoin. In the case of the former, they can mine a wide range of digital currencies. However, the most attractive (and by far), is the native cryptocurrency of the Ethereum Blockchain network.
The difficulty is just one of the aspects related to the turbulent week that left Bitcoin mining as the protagonist in the main crypto portals. Source: BTC.com
Discussion on environmental impact in China triggers migration of miners
The impact of Bitcoin mining on environmental stability is a long-standing debate. But, for some months now, it seems to be gaining vitality due to pressure from environmental groups. These ensure that the most popular of digital currencies is lethal for the viability of the environmental goals of the main industrial powers.
Among these powers is the People’s Republic of China. This country aspires, according to its rigid communist economic planning, to become a neutral country in terms of carbon dioxide emissions. The authorities have stepped up their pressure on major mining farms to avoid planning delays.
This has caused a large migration of miners, both within China and to other nations. The importance of this fact is that in that Asian country there is more than half the hash power of the pioneer cryptocurrency.
Elon Musk and Michael Saylor at the helm of green Bitcoin mining
Another of the facts that have placed Bitcoin mining as the protagonist of the week, is the constant love and hate with Elon Musk. One of the most recent falls in the price of Bitcoin, was caused by the announcements of the CEO of Tesla, who assured that they suspended the sales of their vehicles operated with the cryptocurrency.
The reasons behind Musk’s statements were that, according to him, mining causes environmental damage. Now, trying to stop the damage caused by these actions against the digital currency, Musk allied with another of the protagonists of the crypto arena, Michel Saylor.
Between them, they announced the creation of a council for the green mining of Bitcoin. This body would be in charge of promoting the use of green energies to generate the aforementioned cryptocurrency.
Mining power loses strength in the face of attacks by the Chinese authorities
But if Bitcoin mining was the protagonist of the week with this news, the consequences of it did not stop there. Thus, for example, the measures of the Chinese authorities against the miners, caused a new drop in the Bitcoin hashrate. At the same time, the mining difficulty collapsed by 16%.
According to the statistics published by the BTC.com portal, the difficulty of the network fell from 25.05T to 21.05T, which represents 15.97%. This is an overwhelming drop that will make mining easier, but at the same time leaves the network more vulnerable.
Added to this are the already highlighted operations in Iran to prohibit mining activity in its territory for 4 months.