Noti Hash is CriptoNoticias’ Bitcoin mining newsletter. It is published on our website every two weeks, being today, Thursday, January 27, 2021, the thirteenth edition to be published, at block 720,606.
After ending the riots and protests in Kazakhstan, police operations are lifted and troops from allied countries such as Russia withdraw once order is restored. However, this does not mean the end of the difficulties for Bitcoin miners in a country that, according to studies, concentrated 18% of the processing power or hashrate of the network.
In CriptoNoticias we had several outstanding information in this regard, since the second half of January, when we published the first edition of Noti Hash of the year 2022.
To begin with, on Monday, January 24 at midnight, the Kazakhstan government suspended the electricity supply for mining farms, a measure that will continue until January 31. At the same time, there was also a blackout that left the entire national territory in the dark, as well as the neighboring countries Kyrgyzstan and Uzbekistan.
Therefore, the miners are looking to move their operations to other territories such as Russia and the United States, since Kazakhstan is not the Bitcoin mining paradise for them that it was two years ago. Political problems and the instability of the electrical system encourage them to look for better options to continue their activity.
Blackouts in Kazakhstan ‘Tickle’ Bitcoin Hashrate
The blackouts seem to have had some impact on the hashrate or total processing power of the Bitcoin network, however It has not been a drop or even close to pronounced like the one that occurred between January 2 and 3 when the protests took place in Kazakhstan.
According to the annual perspective of the evolution of the Bitcoin hashrate, the trend has been steadily upward, and the month of January 2022 has not been the exception.
A possible indicator that the hashrate has not stopped growing is the most recent Bitcoin mining difficulty adjustment. This increase in difficulty was the highest since August 25, 2021, when the network was already showing the first signs of hashrate recovery after the bans in China.
This difficulty adjustment, which occurred on January 20, is recorded at 26.64 T, 9.32% more than the previous period, which marked 24.37 T. Thus, Bitcoin once again breaks a historical maximum of difficulty, making that it has never been so difficult to mine this network and that it has never been so protected against 51% attacks and hacks.
Like the hashrate, Bitcoin’s difficulty settings have continued to rise, surpassing the highest levels seen last year.
At the close of this edition, the volume of Bitcoin transactions presents a slight increase that has put the minimum average commissions to the user between 7 and 11 satoshis per byte, according to Mempool.Space.
However, this does not seem to have to do with a low hashrate or with the difficulty of mining the network, but with a high volume of transactions incoming from users.
This could take place due to reorganization movements in the positions of bitcoin traders before the announcements of the US Federal Reserve on the annual interest rates in that country, measures that have possibly been affecting the price of BTC, as we reported in CriptoNoticias.
Despite the increased difficulty, Bitcoin continues to provide opportunities for everyone. In CriptoNoticias we reported how a lone miner managed to mine a complete block with a mining “mini farm”, managing to claim the reward of 6.25 new BTC plus commissions. He is the third solo miner to accomplish this feat this year, which has not been that often in recent Bitcoin history.
Bitcoin miners find options in Latin America
In Kosovo, bans against Bitcoin mining have miners worried, debating whether to sell their equipment or take it elsewhere, though they still don’t know where.
Perhaps the answer could be Latin America, where miners from Kazakhstan, Iran and other countries are arriving to regions of Paraguay, Argentina and Costa Rica.
On the other hand, although it is not a private sector initiative, this week we also highlight the decision of the municipal government of the Italian city of Borgo D’Anaunia to mine Bitcoin from a regenerated power plant.
This occurs when even the European Union is considering banning Bitcoin mining as it is considered inefficient and harmful to the environment. However, this is far from reality, when 58% of Bitcoin mining uses renewable energy, we report in this medium.
Nicolás Antiporovich from CriptoNoticias elaborated on this topic in his most recent opinion piece, explaining how the environmentalist argument against Bitcoin could be a Trojan horse of the States.
Bitcoin Mining Rigs Could Gain Momentum in 2022
The environmental argument against Bitcoin mining could also find a counterpart in the development of more efficient mining equipment.
We recently reported about the launch of a new Bitcoin miner with a liquid cooling system by the manufacturer Bitmain, the S19 Pro Hydro, in order to moderate with an internal system the high temperatures that these equipments can generate.
It is possible that the dollar price of the S19 series equipment has been reduced during the last three months in anticipation of the launch of the new model with liquid cooling, however, they are similar to those reached last year, around USD 10,000.
Clearly the variations in the price of bitcoin (BTC) can affect or benefit miners who save with this currency, while the price in USD remains stable, but if BTC falls, more would be needed to buy these mining rigs. Currently an S19 is priced at 0.22 BTC, according to HashrateIndex.
Likewise, the specialized firm Braiins shared with us a practical guide to extend the useful life of ASIC mining equipment, which also makes this business more sustainable and efficient.
Meanwhile, the giant of microprocessors and components for computers, Intel, announced that it is preparing to manufacture a high-performance, low-voltage ASIC equipment for Bitcoin mining, so the future in this sector looks promising.
Mining from other networks
We spoke with Erick Castro Vera from Luxor Mining about the launch of this firm’s Ethereum mining pool.
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photo of the week
In Wyoming, USA, Bitcoin miners operate in the same facilities where oil and gas are stored.