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On-chain shows Bitcoin miners have been in a phase of distribution recently, a sign that could prove to be bearish for the price of the crypto.
Bitcoin Miner Reserve Observes Downtrend As Miners Look To Dump
As pointed out by an analyst in a CryptoQuant post, the latest selling from BTC miners may force the price down in the short term.
The “miner reserve” is an indicator that measures the total amount of Bitcoin currently stored in the wallets of all miners.
Three key factors come into play when bitcoin mining companies are trying to not only be profitable, but just to stay afloat during bear markets.
This is an opinion editorial by Bob Burnett, the founder and CEO of Barefoot Mining.
Drivechains, like softchains, are another sidechain implementation with two-way peg functionality.
This is an opinion editorial by Shinobi, a self-taught educator in the Bitcoin space and tech-oriented Bitcoin podcast host.
This time I’m going to be breaking down and discussing how drivechains work; they were initially proposed in 2015. Out of all the proposals discussed so far, drivechains are the oldest and the most fleshed out in terms of specific implementation details and design, documented in BIPs 300 and 301. Paul Sztorc, the creator of the concept, had a few chief design goals in mind, and while this is not at all comprehensive, here are a few:
On-chain data shows Bitcoin miners withdrew a large amount of coins from their wallets yesterday, suggesting they may be planning to sell them.
As pointed out by an analyst in a CryptoQuant post, the BTC miner reserve observed a plunge during the past day.
The “miner reserve” is an indicator that measures the total amount of Bitcoin currently stored in the wallets of all miners.
When the value of the metric rises up, it means a net number of coins are entering into miner wallets at the moment.
Kazakhstan has imposed new tax rules on crypto miners, this new taxation system shall be differentiating the tax rates on crypto mining. It also includes crypto miners that use renewable energy resources. President of Kazakhstan Kassym-Jomart Tokayev has signed this law which shall be amended into the country’s Tax Code.
The amount of tax levied shall be related to the amount and average price of electricity that miners are consuming during the extraction of cryptocurrencies such as Bitcoin. There has been constant attempts to regulate crypto mining activities including Bitcoin and other cryptos in Kazakhstan.
Marathon Digital is among the few miners to not have sold any of its bitcoin treasury during the latest market crash, but how long will that last?
Bitcoin miners have historically sold BTC as they produced it to cover operating costs. But over the past couple of years a “HODL” strategy has permeated the industry as participants have opted to pay off expenses with debt instead.
Miners racked up much bitcoin- and equipment-backed financing to raise a combined $ 4 billion in capital for daily expenditures as bids to keep increasing bitcoin treasuries rose in the industry.
As June monthly production updates roll out over the next week, Core Scientific and Bitfarms have both sold nearly 50% or more of their bitcoin treasuries.
The below is an excerpt from a recent edition of Bitcoin Magazine Pro, Bitcoin Magazine’s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.
On July 5, 2022, Core Scientific, the world’s third-largest publicly traded bitcoin miner by market cap ($ 525.52 million) announced in its June monthly update the sale of 78.6% of its bitcoin holdings.
We are often told that the verification of bitcoin transactions eats a lot of energy. The largely inaccurate comparison to a small country, the size of Ireland or Denmark, is evoked thanks to numerous clickbait headlines. What mainstream media fails to explain, however, is that bitcoin mining is actually helping electricity producers prevent energy waste. Hydropower plants, for example, can generate and sell much more electricity during rainy seasons in some regions or when snow melts in others. Wastage can be mitigated through a symbiosis with bitcoin farms, at no additional cost for the environment.
According to regional reports, the Central Bank of Iran (CBI) is planning to allow licensed cryptocurrency mining as long as operations are charged for electricity based on the price of export. The CBI governor, Abdol Nasser Hemmati, explained that mined cryptocurrencies should flow back into the Iranian economy.
Also read: Bitcoin Miner Recounts Struggle to Obtain Cheap Iranian Power
Mounting cryptocurrency regulations have some Chinese bitcoin miners fleeing the world’s second-largest economy. Their surprise destination? Iran. According to the Managing Director of the Iran Blockchain Association, Mohammed Sharqi, talks have already started between interested parties. Confirming this in a statement to PressTV, Sharqi said: “The Chinese have made requests through official channels for cryptocurrency […]
The post Why Bitcoin Miners Are Fleeing China for Iran appeared first on CCN Markets
Mostafa Rajabi Mashhad, the spokesperson for Tavanir, an Iranian state-operated grid entity, has explained that electrical consumption has spiked by 7% in comparison to the previous year. Rajabi blames illegal cryptocurrency mining operations for the country’s increased electrical consumption and has warned that illicit mining facilities will be cut off from the grid.
Also Read: Check out Bitcoin.com’s Rebrand Giveaway and Win a Keepkey Hardware Wallet
Struggling crypto mining firm Argo Blockchain says it’s expecting to break even in the second quarter after an investment in new equipment.
CoinDesk
They’re doing it in British Columbia, Quebec, Manitoba, Alberta and Labrador — bitcoin miners in Canadian provinces are taking advantage of the country’s cool climate and abundant supplies of hydroelectric power.
A number of provincial governments are offering lower rates to attract bitcoin miners and Labrador’s government is considering energy incentives to attract what it says are “outstanding requests for service” from bitcoin and other “data centre” processors, according to a report from the National Post.
The province of Quebec experimented with energy incentives but was so overwhelmed by the demand from bitcoin miners that it withdrew its lower energy prices — but is still experiencing an increased demand for power.
This article was originally published by 8btc and written by Lylian Teng.
Many Chinese cryptominers have migrated to places with cheap electricity and favorable policies as a result of the escalated government crackdown on cryptocurrency and its production process.
With the rapid downfall of bitcoin prices in late 2018 and increasing electricity bills, Chinese mining investors are looking for alternative places to sustain their businesses. The tightened regulations on cryptomining in the country, for the risk of crypto speculation and concerns about energy usage, urge them to speed up their relocation.
On March 29, the two largest mining rig manufacturers, Canaan Creative and Bitmain Technologies, announced the sale of their next generation devices that process the SHA-256 algorithm. Both firms are gearing up to sell the new products this spring as a slew of mining operations have been prepping up new facilities in order to take advantage of the wet season in China.
Also read: Mempool ‘Spam’ and Rising Fees: The Consequences of Veriblock’s Mainnet Launch
Mining operations that process SHA-256 coins like BTC and BCH saw revenues slashed due to the bear market lows at the end of 2018. Revenues continued to fall into the new year, but over the last few weeks, network hashrates have been climbing again. A report published on March 4 details that even though mining profits dropped to a 19-month low in February, gross margins still grew by 39 percent.
Also read: An In-Depth Look at Ethereum’s Maker and Dai Stablecoin
Over the last two months, the hashrate between the Bitcoin Cash (BCH) and Bitcoin Core (BTC) networks has increased significantly since hitting a low on December 15, 2018. Numerous reports detail that many Chinese miners who control a large portion of SHA-256 hashrate have been recently setting up shop in Sichuan. During the wet season here, miners can get an astounding 0.08 yuan per kWh or $ 0.01 per kWh.
Also Read: Self-Proclaimed ‘Satoshi’ Responds to Billion-Dollar Bitcoin Lawsuit
Over the last few years, certain cryptocurrency networks have tried to block ASIC mining with many fruitless attempts to forge ASIC-resistant protocols. Multiple cryptocurrency developers have attempted to brick ASIC miners, but with scant success. A perfect example is the privacy-centric digital currency Monero, a project that has tried to fork the software multiple times in order to gain ASIC resistance. Monero developers have once again failed in that respect as a recent analysis shows more than 85 percent of the Monero network is currently dominated by ASICs.
Also Read: Core Developer’s 300kb Block Proposal Bolstered in Bid to Push Lightning Adoption
During the first month of 2019, studies have revealed the growing trend of unknown miners processing blocks on the Bitcoin Core (BTC) network. A few years ago, most mining pools began revealing their identity via the coinbase parameter when they found a block. Over the last two years, however, unknown miners have started to dominate as established operations have lost a considerable share of hashrate.
Also read: Bloq Labs Reveals Software Suite That Aims to Increase Hash Power by Double Digits
One problem that concerns many is the centralization of mining within the Bitcoin ecosystem. Fortunately, there are talented developers working to solve this problem and Matt Corallo, full-time Bitcoin developer at Chaincode Labs, is one of them. His BetterHash Mining Protocol is intended to significantly decrease the problems associated with mining pool centralization.
First, it is important to understand there are different types of miners on the network. For the purpose of this article, we’ll refer to a “solo miner” as someone who mines alone, a “hasher” is someone who mines in a mining pool, and a “pool operator” controls the mining pool.
