Friday, December 3

Bitcoin Mining: New Taproot Update on Pools Highlighted This Week

In this new edition (number 63) of our classic mining news roundup, the new update to the Bitcoin Blockchain is highlighted. Less than a week after applying this soft fork, the main mining pools began to move transactions in it. This and other important news will be reviewed in this news brief.

On the other hand, the statements of the forum member Rocelo Lopes during the laBITconf 2021 activity, held in El Salvador, stand out. According to this high-caliber specialist, the crypto community needs the poor people mining Bitcoin and not the rich. The statements opened an important debate on the danger of centralization in the mining industry.

Likewise, critical statements by the President of Kazakhstan about mining are highlighted. He stated that, despite the great hashing power in his country, the nation does not receive any returns. If you want to know more about the most important mining facts this week, we invite you to continue reading.

This was the biggest news about Bitcoin mining this week

As usual, our customary weekly mining news roundup goes over the top 5 facts of the last 7 days. On this occasion, the most important news, although not the only one, is the application of the new Bitcoin update (Taproot) in different mining pools. These are the headlines:

  1. “We want poor people mining Bitcoin, not the rich,” said specialist.
  2. Major mining pools process on the new Taproot soft fork.
  3. President of Kazakhstan regrets that the country does not receive returns from miners.
  4. The sale of NVIDIA graphics cards for digital mining fell by 60%.
  5. China warns state-owned companies to stop mining cryptocurrencies.

“We want poor people mining Bitcoin not the rich,” said specialist

The laBITconf 2021 activity, held in El Salvador, can be considered a great success. Likewise, it is highlighted that it generated important debates for the crypto community to continue. One of them came from the specialist Rocelo Lopes in one of the forums on mining. This warned about the dangers that centralization of the business in the hands of a handful of companies entails.

He claimed that, for the sake of cryptocurrencies, it is low-income people who should be mining. and not the rich. The statements are controversial and receive criticism from many people. However, they make sense when you consider that the network is more secure if it works in a decentralized way.

Much could be said about these statements by Lopes. You can be for or against, but the important thing is that they generate an important topic of debate. Should mining be restricted and centralized in a small group of powerful corporations or should it be decentralized in the hands of the largest number of people?

Main mining pools process in the new soft fork Taproot

The new update on the Bitcoin Blockchain, Taproot, became the biggest news about mining this week. A few days after it was applied, the main pools began to process transactions within it. Both F2pool and Antpool validated their first transactions this week through it.

Other major pools such as Binance do the same. All of this speaks of the fact that this hard fork was successfully applied on the network. It should be remembered that it comes to solve important problems of the primary network of the most popular of cryptocurrencies.

Specifically, there are three issues that Taproot solves. The first of them focuses on the possibility of creating smart contracts. Second, the improvement in privacy, which could become controversial with regulators seeking more transparency. Finally, there is the matter of making transactions less heavy and therefore cheaper.

The new update, Taproot, of Bitcoin is news in this digital mining summary due to the validation of transactions within it by the main pools.  Source: CryptoSlate
The new update, Taproot, of Bitcoin is news in this digital mining summary due to the validation of transactions within it by the main pools. Source: CryptoSlate

President of Kazakhstan regrets that the country does not receive returns from miners

Kazakhstan is one of the countries with the highest hashing power in the world, that is, it has the largest number of farms within its borders. However, the return that the nation receives for this is considerably low, which constitutes a problem between the miners and the authorities. This was precisely the concern expressed by the first president of that country, Kassym-Jomart Tokayev.

Last Friday, the president He participated in a meeting with business sectors, in which he expressed this concern. Cryptocurrencies are an objective factor that cannot be simply ignored. It is necessary to clearly evaluate its potential to influence the current financial system, “he said according to a translation by CoinTelegraph.

In this regard, he highlighted the need to create a balanced regulatory environment. All of this would have the objective of obtaining better income for the State, considering the high profitability generated by the business for the companies involved. In return, the nation offers itself as a friendly and safe environment for business continuity.

Sales of NVIDIA graphics cards for digital mining fell by 60%

Another of the important news about mining, although this time not about Bitcoin, has to do with the company NVIDIA. According to the company’s third quarter report, it was known that sales of graphics cards for mining decreased considerably. East report states that departures fell by more than 60%.

Interest in GPU card mining wanes considering Ethereum’s transition from PoW to PoS. It should be noted that it is the most profitable coin to mine with graphics cards. However, the protocol change seems to mark the progressive end of days for mining this coin.

This would explain the significant drop in sales of the cards that miners generally use to generate coins in Ethereum. Unlike Bitcoin, ETH is generated with GPU cards, while the first of the digital currencies is generated by specialized ASIC equipment, popularly known as mining machines.

China warns state-owned companies to stop mining cryptocurrencies

This year, the People’s Republic of China outright banned cryptocurrency mining, specifically Bitcoin. Within weeks, thousands of miners took their farms offline for fear of retaliation from authorities for non-compliance. Despite this, there are still remnants of the business, which are being suffocated by the authorities.

One of the most difficult bones for Beijing is state-owned companies, many of which maintain mining operations. The important thing about the case is that many of them act with a certain degree of impunity. Thus, the authorities warned of serious punitive actions if they continue to defy the prohibitive laws.

According to a spokesman for the National Development and Reform Commission, Meng Wei, that institution has the mission to regulate the business. Consequently, he urged local administrations to inspect more thoroughly to eliminate the mining activities of state companies.

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