Business like crypto mining
On a sweltering July day, an unlikely group arrived at a shooting range in central Texas. It was just one stop on a sprawling, statewide tour that spanned industrial power plants, trying on sleek cowboy hats with oil prospectors, and learning how to handle AR rifles. Poolin holds the second-largest share of the global Bitcoin hashrate — a measure of the computing power it takes to mine new Bitcoin — with a network of operations across Berlin, Beijing, Chengdu, Changsha, and Singapore. Up to that point, China had been a center of gravity for Bitcoin mining.
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Content:
- Why China’s crypto cowboys are fleeing to Texas
- Bitcoin backlash as ‘miners’ suck up electricity, stress power grids in Central Washington
- The debate about cryptocurrency and energy consumption
- How Much Energy Does Bitcoin Actually Consume?
- Bitcoin (BTC) Mining: Is It Still Profitable?
- Don't Start Crypto Mining Now: 500+ Days Just to Break Even
- TERAWULF POWERS 90% ZERO-CARBON CRYPTO MINING
Why China’s crypto cowboys are fleeing to Texas
As of p. That pulled a host of Bitcoin mining stocks higher as well. But those gains were not entirely because of Bitcoin's move. Some of these companies have also recently released updates about their businesses, and investors' responses to those news releases contributed to their share price jumps on Friday. On Friday morning, Riot Blockchain gave its monthly operational update, a common practice among cryptocurrency mining companies. The reason for the increase is simple -- it's adding more mining power constantly.
Bitfarms is also adding more hardware to expand its Bitcoin mining operations. The company updated its shareholders on Feb.
The decline relates to the fact that operates in Canada, and at times during the winter months, the Quebec provincial government asks major crypto miners to reduce their electricity use to ensure that there's enough for more important things, like heating and powering homes and businesses.
Hut 8 likewise updated shareholders Thursday. It mined Bitcoins in January. For its part, Bit Digital hasn't yet updated shareholders in February. But it's understandable why its stock popped: All of these businesses benefit from higher Bitcoin prices, and on Friday, at least, they were rising. Can Bitcoin keep rising? The answer is far from certain. However, I like to think about supply and demand when it comes to the cryptocurrency.
There are currently less than 19 million Bitcoins in circulation, and the protocol caps the total number that ever can exist at 21 million. When Bitfarms, Riot Blockchain, Hut 8, and Bit Digital work to validate transactions, new Bitcoins are unlocked and released, gradually working that total to its eventual limit.
What's interesting is that because these are public companies, they have easy access to capital that they can use to pay their bills. Therefore, they can hold onto nearly all of the Bitcoin that they mine.
As of their most recent updates, here's how many Bitcoins they were holding:. The public Bitcoin mining companies represent a large portion of the total Bitcoin hash rate. And because they're holding so many of the Bitcoins they mine, the overall circulating supply of tokens isn't going up as much as it otherwise would.
Considering these companies don't need to sell their Bitcoin holdings, I think it's reasonable to assume a lot of Bitcoins will continue to be held by miners in coming the months and years. And if new buyers continue to come into Bitcoin, as they have over the past couple of years, that increase in demand could cause its price to rise further.
However, if has taught us anything so far, it's that Bitcoin remains as volatile today as it ever was. Anyone looking to invest in this space , therefore, should be mentally prepared for a wild ride. When our award-winning analyst team has a stock tip, it can pay to listen.
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Bitcoin backlash as ‘miners’ suck up electricity, stress power grids in Central Washington
This story originally published online at NC Policy Watch. Somewhere in Greenville—few know the precise location—dozens of shipping containers could soon appear on the landscape. The computers are concentrating. They are mining cryptocurrencies, digital money like Bitcoin and Ethereum, by solving complex mathematical puzzles through trillions of guesses. The computers get hot and must be constantly fanned. All of this—the computers, the brain power, the fans—requires enormous amounts of electricity.
The debate about cryptocurrency and energy consumption
Some kids have lemonade stands. The Thakur siblings tried that but wanted to think bigger. They thought about investing in bitcoin, but the price was too high, so they deciding to mine for cryptocurrency instead. In traditional mining, heavy equipment digs through layers of rock to find coal or precious stones. In cryptocurrency, mining computers do all the digging. The siblings started a company called Flifer to mine mostly for ethereum, a cryptocurrency similar to bitcoin. They've outgrown their garage. They have banks of computers in a data center in Dallas, mining for digital currency. The garage is now their lab and warehouse, filled with pricy, hard-to-find parts that they have to wait outside stores before they open to be able to buy.
How Much Energy Does Bitcoin Actually Consume?
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Bitcoin (BTC) Mining: Is It Still Profitable?
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Don't Start Crypto Mining Now: 500+ Days Just to Break Even
This means Intel will in fact compete with its own specialized ASICs for Bitcoin mining, opening up a new market that the company hasn't addressed directly in the past. The specialization and expertise required to build, maintain and repair these machines has created a rather niche market, sometimes resulting in steep price increases for the hardware needed to mine bitcoin and secure the network. With Intel entering the Bitcoin mining space and introducing what it claims will be a revolutionary ASIC chip, this critical marketplace could be permanently transformed. Some in the space are optimistic about a U. To get a better handle of how Intel might shake up the world of bitcoin mining, we spoke with Sue Ennis, the vice president of investor relations with Hut 8 Mining, a Toronto-based, publicly-listed mining firm. What was the initial response from Hut 8 upon hearing the news?
TERAWULF POWERS 90% ZERO-CARBON CRYPTO MINING
There are countless ways to make money with computers, but right now there are few as interesting and potentially lucrative as mining for crypto currency. The decentralization of money has led to a digital gold rush, as individuals, mining pools, and full-fledged mining companies vie for the same blocks. So how do you stake your claim and mine your own minty fresh crypto cash? The first thing that you need to understand is that, just like rushing out to California, buying a pick, and riding your donkey into the hills, mining cryptocurrency is a bit of a gamble.
The new rules are not specifically targeted at crypto: They are intended to rein in all energy intensive industries Inner Mongolia was the only province to fail a central government review of energy consumption last year. Aside from crypto mining, they will also limit PVC, steel, coke, and methanol production. And miners need a lot of electricity: The bitcoin economy uses more electricity annually than the whole of Argentina, according to analysis by researchers at Cambridge University. Chinese crypto miners can still find cheap electricity, some of it from hydropower in Sichuan and Yunnan, but they face many other challenges, mostly from government regulation and an ill-defined legal status. The government control is surprisingly recent: From the invention of bitcoin in until , the Chinese government did not regulate cryptocurrencies at all, and a thriving bitcoin economy began in China, including mining, ICOs initial coin offerings , online wallets, and cryptocurrency exchanges.
Despite price challenges and a surge in regulations around Bitcoin mining, the BTC hash rate is making new records every week. In January , the mean hash rate breached the level of Exahash , the highest level on record. BTC network witnessed a sooner-than-expected recovery in the mining sector after China announced a crackdown on the mining of digital assets in the region. However, leading Bitcoin mining companies shifted to other global locations due to the mining-friendly approach by the relevant governments and cheap electricity. With mining rewards getting less amid Bitcoin halving events, rising competition, and energy issues, there is one key question that comes into the mind of every individual interested in this sector, is BTC mining still profitable? Well, analysts believe it is, and they have some strong numbers to back their claims.
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