Wednesday, January 19

Bitcoin Mining: Between Underground and Expansion in This Weekly Roundup


A new edition, number 68 and the last of this year 2021 of our weekly summary is presented to readers. Important facts stand out from this, including the expansion of the Bitcoin mining business regardless of legality or illegality. It is a busy week despite coinciding with the Christmas holidays.

Among other relevant news during the last 7 days, the millionaire purchase of equipment by a mining company stands out. Is about Stronghold Digital Mining. On the other hand, the firm gained prominence Hive Blockchain. This would now be in a transition to decrease the mining of Ether and focus only on the main one of virtual currencies.

Likewise, it is highlighted that this week there was a new adjustment of the difficulty of mining Bitcoin. It is a new increase, which indicates health in the Blockchain network of that cryptocurrency. If you want to know more of the 5 most important news of the week in this business, we invite you to continue reading.

Top 5 Bitcoin Mining News of the Week

As usual, in this summary of news about Bitcoin mining, the most important information among the various portals is selected. They are presented in the form of a synthesis. In this way, readers are kept abreast of the most relevant events of the week in the mining business. These are the headlines of this 68th edition:

  1. Clandestine mining in China keeps that country at the top.
  2. New adjustment for the difficulty of mining Bitcoin was higher.
  3. Stronghold Digital Mining announces millionaire purchase of ASICs.
  4. Argo Blockchain is one of the favorite stocks on Fidelity.
  5. Hive Blockchain will mine more Bitcoin and less Ether.

Clandestine mining in China keeps that country at the top

While many may want to see digital mining in China as a bygone chapter, sealed and forgotten, it is not. Many miners complied with the regulations of the authorities and left for centers such as the United States, Iran, Russia and South America. Another group chose to shut down their equipment and sell it to pursue other businesses.

But a third group remains in the shadows. These are clandestine miners, who are exposed to harsh punishments if discovered. In a recent work by CNBC, shows what life is like for these daring entrepreneurs. According to that publication, 20% of the global hashrate remains in the Asian country.

Chinese miners use various tricks to avoid capture by the authorities. Some of them are to spread their equipment in different places to avoid being detected by consumption. In parallel, they take precautions using VPNs. Other measures are to avoid the unmistakable noise of the equipment, for which they use various modalities such as encapsulation and mining by means of immersion in mineral oil.

New Bitcoin Mining Difficulty Adjustment Was Higher

As expected, the new difficulty adjustment of the Bitcoin Blockchain for mining that currency, occurred on the upside. This is the 11th increase in complexity of the last 12 produced since the recovery of the hash power of the most popular of digital currencies began. All this as a result of the aforementioned mining ban in China.

Now, with this new adjustment, the difficulty reaches 24.27T, getting closer and closer to the all-time high of 25.05T. The latter was reached in mid-April just before Beijing’s ban. In this way, a year that could have been catastrophic for the business is closed. However, his maturity and strength were demonstrated by his quick recovery.

The next adjustment of this complexity index will be approximately in 12 days according to BTC.com. It is expected that it will become a barely perceived decrease in difficulty by 0.46%. Meanwhile, the hash power of these cryptocurrencies is placed at the time of writing in 170 EH/S.

The new upward adjustment of the difficulty to exercise Bitcoin mining, is among the most outstanding news of this week.  Source: BTC.com
The new upward adjustment of the difficulty to exercise Bitcoin mining, is among the most outstanding news of this week. Source: BTC.com

Stronghold Digital Mining Announces Million Dollar Purchase of ASICs

The Pennsylvania-based American Bitcoin mining company recently announced its new projects. Featured in CoinDeskThese consist of comparing thousands of mining equipment to two of the main ASIC manufacturers. The latter would be MicroBT and Bitmain. The purchase would be valued at tens of millions of dollars.

It should be noted that the company currently has about 5.2 EH / s of mining power, which makes it one of the largest in the world. These are generated by some 54,000 mining equipment, to which would be added the 9080 that will be finalized with the recently announced purchase.

On the other hand, it is highlighted that part of the teams would be received in the next few days or at the beginning of January. Also, purchases with manufacturers were agreed in parts. Parallel to this, the company signed a financing contract with NYDIG for about $ 54 million dollars to finance part of the purchase of machines, with an interest rate close to 10%.

Argo Blockchain Counts Among Fidelity’s Favorite Stocks

Another of the news that is among the main ones in the field of Bitcoin mining this week has to do with Argo Blockchain. Specifically in the realm of the stock market, the shares of this mining company rose considerably in popularity with Fidelity clients. According CoinTelegraph, the choice of the shares of this firm exceed those of giants such as BP Y Lloyds Banking Group.

In this sense, the fund announced that during the last 12 months its clients were more interested in negotiating with the mining company Argo Blockchian. Thus, in a recent report, highlighted by the aforementioned media, the shares of this company would have occupied the number 3 position among the 5 most popular of its clients.

This top 5, the mining company would be sharing with Rolls-Royce and the other two mentioned above. It is an important step for companies related to cryptocurrencies when it comes to occupying spaces in traditional financial fields.

Hive Blockchain Will Mine More Bitcoin and Less Ether

One of the most heralded trends among digital mining firms that were largely engaged in Ether is that they will now focus only on Bitcoin. The most recent of this group is Hive Blockchain, which announced the beginning of the transition through which it will abandon the mining of the second most important digital currency in market capitalization.

According advertisement this firm, the production of Ether would decrease 20% on a quarterly basis. At the same time, that of Bitcoin would increase in the same period of time by 2%. In this way, this company, which is listed on the New York Stock Exchange, expects to produce about 670 BTC and 6,900 ETH for the quarter that ends this last month of 2021.

To get an idea, during the third quarter of the year, the production of Ether was about 8,688 coins. Consequently, the figure for what will be the last quarter represents approximately a 20% decrease compared to the third fiscal quarter of 2021.



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