Monday, May 29

Bitcoin mining under the magnifying glass of Fidelity and other highlights of the week

The Bitcoin mining business is still under the gaze of millions due to the news it generates and in this summary, we present the most outstanding ones. As usual, for this work the information that set trends in the main specialized portals is selected.

Among the most important facts, the ongoing project of Jack Dorsey’s Block payment firm stands out. Likewise, the analysis of the firm Fidelity on mining stands out, where it is recognized that the cycle of this business is far from over. Investments by big firms is a testament that miners see their business as very long term.

On the other hand, it cannot be overstated that a small miner managed the unlikely feat of mining a block. Get to know this and other information in this new edition (number 71) of our classic weekly summary of digital mining news.

Top 5 Bitcoin mining news of the week

This new edition of our weekly Bitcoin mining news roundup highlights that the mining business was under Fidelity’s scrutiny. Along with this, other information is classified in this informative summary of the business of generating virtual currencies. Here are the biggest bullet point headlines from the last 7 days:

  1. Large miners would be planning to leave Kazakhstan.
  2. The Bitcoin cycle is far from over, acknowledges Fidelity Digital Assets.
  3. Block is creating a Bitcoin mining system.
  4. A small miner managed to mine a block of Bitcoin on his own.
  5. Tesla vehicle would be undermining $800 dollars per month to its owner.

Major miners reportedly planning to leave Kazakhstan

Although calm is once again on the streets of Almaty, the Kazakh capital, a significant number of large miners are thinking of leaving the country. The recent protests dealt a serious blow to the productivity of many companies based in that Central Asian nation. It should be remembered that the authorities proceeded to block the internet in an attempt to prevent the protests from spreading.

According to information collected by Reuters Last Friday, the owners of large farms lost confidence. In other words, these investors consider that the country is no longer the paradise that it used to be. Regarding the latter, it is important to note that in 2021 Kazakhstan became the second world epicenter of mining after the ban in China.

Another aspect that miners fear is the possible increase in pressure from regulations. Although the authorities recently reported that 80% of the miners returned to their operations again, the aforementioned media ensures that a large part of them want to leave. The destinations that these would have confessed as favorites would be the United States and Russia, underlines the work.

The Bitcoin cycle is far from over, acknowledges Fidelity Digital Assets

As expected, the expansion of cryptocurrencies is a topic of great interest in the financial world of the most developed countries. In that sense, recently Bitcoin mining was under the magnifying glass of Fidelity Digital Assets, in an analysis with encouraging results, worthy of this summary. In it, it was concluded that the cycle of the most popular of cryptocurrencies is far from coming to an end.

The main reason for this, explain, would be the strength of the mining business, which is taken very seriously by investors. Thus, the so-called digital miners would have no plans to turn to other businesses in the future. The main reason for this is the great profitability generated by the so-called ASICs. These are specialized machines that process transactions and in return receive remuneration in new bitcoins.

«As Bitcoin miners have the greatest financial incentive to make the best guess as to the adoption and value of BTC (…) the current Bitcoin cycle is far from over and these miners are making long-term investments.», highlights the firm, quoted in CoinTelegraph.

A Fidelity analysis of the digital mining business determined that it will exist in the long term, which lengthens the cycle of Bitcoin.

Block is creating a Bitcoin mining system

The payment firm, Block (formerly Square), advertisement that develops a hardware team to enter Bitcoin mining. Among the plans of the company led by Jack Dorsey, one of the most enthusiastic investors in the most important cryptocurrency in market capitalization, is to create an entire system for miners.

The central axis of this project would be the manufacture of an ASIC mining equipment, of low cost and better efficiency. It should be noted that the company is committed to the decentralization of the business, so the project would be aimed at small and medium-sized miners and even individuals who want to have access to the cryptocurrency created by Satoshi Nakamoto.

Either way, Block will try to eliminate reliance on Asian companies, whose shipments are unpredictable in Block’s words. Likewise, the machines that they would be developing would have advantages such as the elimination of noise or the generation of heat. Until now, the company has not offered details of how they would go about achieving these last two goals.

A small miner managed to mine a Bitcoin block on his own

It is said that under the business of Bitcoin mining, unlikely events, no matter how complex they may seem, are to be expected and one of them is highlighted in this summary. Recently, a small miner who achieved the feat of mining a block on his own. In other words, it didn’t need to be combined with the computing power of a pool.

At just 126 TH/s, which could net you 0.0196248 BTC ($850) in a month at the current difficulty level, it mined an entire block. That is, the miner conquered 6.25 bitcoins, which is equivalent to $270,000 dollars. According to experts in the field, the chances of this happening are one in a billion. However, this miner made it and now he can boast of his 6+ BTC.

In mining pools, miners associate to add computing power and increase the chances of getting blocks. In some of these pools, even tens of EH/s are concentrated. Thus, the more concentrated power or hashrate, the more likely it is to mine a block, then the reward is distributed to the members of the pool according to the hash they contributed. In this case, the miner did not have to share the block reward with anyone.

Tesla vehicle would be undermining $ 800 dollars per month to its owner

Despite criticism of Bitcoin mining by Elon Musk, his company Tesla creates vehicles that are also mining machines. Consequently, the owner of one of these electric cars claimed that he had his car mined, generating approximately $800 per month in cryptocurrencies. This is a data scientist whose name is Siraj Raval.

During an interview granted to the portal of CNBC, the scientist assembled a complex process that led him to generate the digital currency. To do this, he explains, you need to connect a device to the car’s 12-volt output, that is, an “inverter.” The latter transforms direct current into alternating current. At the other end of the inverter, a computer is connected, in his case an Apple Mini 11.

With the computer, you can access the mining software. Also, the owner of the Tesla Model 3. An important aspect to take into account is that recharging the car’s energy would have a lower cost than the ordinary bill. This fact gives you the possibility of saving and at the same time mining without having to account to regulators, if they exist.