At press time, the father of crypto has broken its present resistance level and moved beyond the $4,000 mark (bitcoin is currently trading for roughly $4,043).
The currency has interestingly moved head in price, but it’s also bolstered forth in other ways as well. Many analysts claimed that bitcoin mining was wreaking havoc on our present environment.
At press time, the father of cryptocurrency is trading for just over $3,800. This is about $100 less than where it stood during our previous price article, and it is unlikely bitcoin will undergo another price rally anytime soon.
Bitcoin has fallen so badly that many cryptocurrency mining companies are beginning to sell their equipment at massive discounts.
The mining profitability of Bitcoin and its major “clones” has been a topic of debate for some time now. While it was evident Bitcoin would be the most profitable currency to mine for the longest time, that is not necessarily the case any longer. Both Bitcoin Cash and Bitcoin Cash SV mining are more profitable right now, which further confirms how things continue to evolve every single day.
The Bitcoin Mining Profitability Struggle
When the Bitcoin price falls – as it has done in dramatic fashion over the past few weeks – the profitability of mining operations comes into question.
When it comes to mining various cryptocurrencies, there are many different factors to take into account. If it is not profitable to mine a currency at a specific moment, one’s best option is to either turn off the unit or mine something else. In the case of Bitcoin and Bitcoin Cash, there has been an ongoing battle for profitability. Right now, the deck is stacked against BCH, for rather obvious reasons.
Bitcoin Cash Mining Profitability Plummets
It has been a wild week for Bitcoin Cash, primarily because of the network upgrade which was enforced on November 15th.
Bitmain has dominated ASIC manufacturing since it was founded in 2013. One man has been at the forefront of this domination, leading the company into the giant that it is today; Jihan Wu. However, it may not be so for much longer, with a Chinese publication revealing that a recent reshuffle has demoted the renowned crypto campaigner to the role of a supervisor from his previously held Director role in the board.
The news come after the Financial Times unearthed the fact that the figures reported for the profitability of the firm had almost been doubled in earlier reports by the firm.
Bitcoin’s energy-intensive mining process has been one of its greatest challenges and while various solutions have been proposed, none has quite solved the challenge. However, a group of farmers in a small village in Iceland have found an innovative way to earn cryptos while warming up their houses. The farmers lend out their excess geothermal energy to one of the locals who operates crypto mining equipment, thereby earning extra income. The farmers further use the excess power for other uses such as heating their homes.
Recently, various reports have been suggesting that China’s crackdown on cryptocurrencies will extend to mining, as state-run Sichuan Electric Power Corporation reportedly distributed a circular ordering grid-connected hydropower stations to stop supplying low-cost electricity to bitcoin mining operations. As reported by CCN, the report has been debunked as the company admitted it made several mistakes, including using unverified claims, on its circular.
Bitcoin’s price surge has swelled the power consumption of computers mining the digital currency, according to a blog by Christopher Malmo, writing in Motherboard, that questions the environmental impact of bitcoin mining.
According to a cryptocurrency index from Alex de Vries, also known as Digiconomist, bitcoin miners can consume more than 24 terawatt hours of electricity per year in producing bitcoin.
Throughout this week, false reports regarding the legality of bitcoin and cryptocurrency mining have emerged. Local sources have revealed that bitcoin mining is not banned as of yet.
Unconfirmed Reports and Rumors
Initially, Sichuan Electric Power Company, released an unconfirmed circular which claimed that the use of electricity to produce and mine bitcoin is illegal. Caijing, an independent news publication based in Beijing, first reported on the circular released by Sichuan Electric Power Company, and more media outlets followed.
China’s Sichuan province is gearing up to extend its bitcoin ban to mining operations as part of its wider crackdown on the cryptocurrency industry.
According to local media outlet Tencent Finance, the state-run Sichuan Electric Power Corporation has distributed a circular ordering grid-connected hydropower stations to stop supplying low-cost electricity to bitcoin mining operations.
Because mining has become so competitive, few ordinary bitcoin users can make a profit mining the cryptocurrency.
A bitcoin mining company in Singapore is seeing a rising number of customers purchasing mining rigs as the cryptocurrency gains in value.
SG Mining, based in Singapore, has seen sales shoot up in recent months. In July, the company was selling 15 mining rigs, but now it’s seeing sales of around 100 per month. Dexter Ng, one of the team members who builds the mining hardware and sell them, said to Channel News Asia:
Customers come in and order 50 rigs on their own.
The county sheriff in Bentonville, Ark. is mining bitcoin as part of a program to prevent cyber crime, according to the Northwest Arkansas Democrat Gazette. Detectives interviewed about the initiative did not give a lot of details about the program, but said the sheriff is using bitcoin for undercover operations.
Samsung built a bitcoin mining rig made out of 40 old Galaxy S5 devices that run on a new operating system for the company’s upcycling initiative, according to Motherboard. The company’s C-Lab developed the mining rig and other uses for old phones, which were on display at the company’s recent developer’s conference in San Francisco.
GBMiners, India’s largest bitcoin mining pool operator, has clarified that the company has not pulled out from the SegWit2x (NYA) agreement.
Earlier this week, CCN reported that Litecoin creator and former Coinbase executive Charlie Lee revealed GBMiners stopped signaling for the SegWit2x hard fork expected to occur in November.
On October 27, Litecoin creator and former Coinbase executive Charlie Lee revealed that GBMiners, a major mining pool operator, has stopped signaling for the SegWit2x hard fork expected to occur in mid-November.
GBMiners (~2.5% of total BTC hashrate) stopped signaling for Segwit2x hardfork. First of many pools to realize the folly of this hardfork. 👏 pic.
According to an article published by Business Insider, Dutch bank ING recently published a study suggesting that bitcoin mining consumes too much electricity. The report claims that a single bitcoin transaction consumes as much electricity as a house in a whole month, and compares it to the amount of electricity traditional electronic payment methods consume per transaction.
A new cryptocurrency has been created through a hard fork of the bitcoin blockchain.
Completing a process that began in July, the bitcoin gold technical team has taken what it calls a "snapshot" of the bitcoin blockchain so it could be recreated and reconfigured with new rules, ultimately creating bitcoin gold at block 491,407 on the original blockchain.
As of now, the process is underway by which the new bitcoin cryptocurrency will be completed and released to existing bitcoin users.
Bitcoin communities in Brazil and Argentina have issued a joint statement opposing the SegWit2x hard fork mandated by the New York Agreement (NYA).
The statement, which is signed by both local bitcoin associations and crypto startups including Bitsendal, Blinktrade, and Coinkite, opens by expressing the belief that NYA signatories entered into the agreement with the noble intention of improving bitcoin’s scalability.
The Seoul Bitcoin Meetup has penned an open letter to New York Agreement (NYA) signatories, urging them to rescind support for the controversial SegWit2x hard fork that is scheduled for mid-November.
The Seoul Bitcoin Meetup has nearly 1,700 members, making it South Korea’s largest bitcoin community.
Cryptocurrency mining pool F2Pool has stopped signaling support for SegWit2x, potentially undermining the argument for the November implementation of the controversial scaling proposal.
In May, F2Pool joined virtually every significant mining operation in signing the New York Agreement, the Barry Silbert-led proposal that sought to solidify consensus for SegWit2x, a protocol upgrade that supporters say will help the Bitcoin network scale to manage larger volumes of transactions more efficiently.
According to a report from Barron’s, the dramatic price increase cryptocurrencies had this year has helped graphics card makers like AMD and Nvidia grow. Ethereum, for example, has skyrocketed over 2,000% over the last year, and that led miners to purchase AMD and Nvidia graphics processing units to mine the cryptocurrency, leading to a surge in demand.
According to Nvidia’s second quarter revenue, the website reports, the company gained a $150 million boost thanks to the demand cryptocurrency miners created.
Two IT workers employed by an authority in Crimea were fired late last month after they were reportedly caught mining bitcoins at work.
RIA Novosti reports that the two unnamed individuals were employees of the Council of Ministers of Crimea, part of the disputed territory's executive branch. The news service indicates the workers installed mining software on computers owned by the council, though the report didn't state how long the operation had been in place.
Two IT workers employed by the government of Crimea were fired late last month after they were reportedly caught mining bitcoins at work.
RIA Novosti reports that the two unnamed individuals were employees of the Council of Ministers of Crimea, part of the territory's executive branch. The news service indicates the workers installed mining software on computers owned by the council, though the report didn't state how long the operation had been in place.
Кто знает подойдет ли этот кошелек для постоянного приема в сатоши? Я просто майнить не решился, но написал несколько ботов для того, чтобы они собирали с кранов монеты. Я так понял, что это веб-кошел...