Transcribed Sen. Ted Cruz' comments on Bitcoin and energy from the Texas Blockchain Summit this week. My jaw dropped while listening – he has the most enlightened perspective on the issue I've ever come across from a policymaker pic.twitter.com/iu90oukr2w
“The U.S. is now the leading country for bitcoin mining, doubling its share in the energy-intensive activity in the four months since China began a cryptocurrency crackdown, according to researchers that track mining activity” asia.nikkei.com/Spotlight/Cryptocurrencies/U.S.-overtakes-China-in-bitcoin-mining-after-Beijing-clampdown
The US storms to the top of the bitcoin mining chart after Beijing's crypto ban. Had a blast working on this with @samjoiner. Thanks to the Cambridge Bitcoin Electricity index for the data Read @EllieOlcott's story www.ft.com/content/50acdea5-cad1-4f39-8e6a-9be7ab78485d #dataviz pic.twitter.com/i4NvTf9r1q
in a a hotel lobby - every convo is a meme (including mine)...VCs, NFTs, crypto, art, community, DTC, web3, etc. ...but it's all good. Just !vibes from us all doing this human thing the best we can while shifting gears, learning, sharing, & building the future. I love humans.
13 October, 2021 - 04:53pm
In the fallout of China’s ban, we are witnessing an unprecedented restructuring of hash rate across the globe (with the United States being the largest beneficiary so far), as well as a surge in interest in the mining industry from newcomers and seasoned bitcoiners alike.
The ban created a unique opportunity, something of a reset that leveled the playing field for sidelined investors who never thought it would be possible (or profitable) to enter the industry. In this way, Q3 marked nothing shy of a Renaissance for the Bitcoin mining industry.
Luxor Technologies has compiled some data from our Hashrate Index data platform to quantify this change in our Q3 report. Below are some highlights, and you can find the full report attached at the end of this article.
The Bitcoin mining Hash rate has made a Herculean recovery following the ban; after being cleft in half, it rose from late-June lows of 69 exahashes per second (EH/s) to 140 EH/s by the end of Q3, a 103% recovery.
From its Q2 lows in June to its Q3 highs in August, hash price in USD more than doubled. Hash price closed out Q3 at $0.29 per terahash (TH), which was 30% lower than the yearly high set in April. For hash price in BTC terms, miners saw a 70% increase from the profitability trough in June to its crest in July.
Collectively in Q3, the largest public North American miners mined 79% more bitcoin than they did in Q2 and 155% more than they mined in Q1.
When bitcoin tanked this summer, mining rigs fell with it, something that was exacerbated by frenzied liquidations following China’s mining ban. In the resale market, some Chinese miners opted to sit on their rigs and keep them in storage, while others liquidated.
The prices for new-generation hardware, for instance, fell 48% throughout the summer, but they recovered from their summer lows by 51% by the end of Q3.
Block times creeped to a sluggish average of 12.6 minutes in June (a 19.93 trillion difficulty kicked in right before China’s mining crackdown, so when half of Bitcoin’s hash rate went dark almost overnight, the network was still hashing under this difficulty until July 3, slowing block production). As a result, miners mined only 23,289 BTC during June — 23% less than what they earned in May.
Fees as a percentage of block rewards have plummeted since the event, with the quarterly average for fees as a share of block rewards falling from 11.14% in Q2 to 2.06% in Q3.
U.S. Claims Top Spot For Bitcoin Mining As Miners Flee China Crackdown — Here Are The World’s Biggest Mining Hubs
13 October, 2021 - 04:53pm
As of July, more than a third (35.4%) of bitcoin’s hashrate—a measure of the mining network’s computing power—was located in the U.S., according to the Cambridge Centre for Alternative Finance.
The figure is the highest proportion recorded for the U.S., up from around 21.8% as of May and around 4.2% a year ago.
Kazakhstan (18.1%), Russia (11.2%) and Canada (9.6%) were other leading destinations for bitcoin miners, according to the hashrate data.
No (0%) hashrate was recorded in mainland China, the data showed, a dramatic shift for the longtime market leader that accounted for around a third (34.3%) of hashrate in May and around two-thirds (67%) in September 2020.
Miners rapidly exited China after authorities in Beijing began cracking down on cryptocurrencies earlier this year.
Bitcoin mining is the process through which bitcoin is awarded to computers solving complex problems. These systems consume vast amounts of energy, which is available cheaply and in abundance in China, though often from dirty sources like coal, which is at odds with China’s climate goals. Miners have been scrambling for a new home since Chinese officials announced a crackdown on mining and trading and parts of the U.S., notably Texas, have proven to be an attractive location for miners seeking cheap—and often renewable—energy. The mass exodus from China has accelerated and amplified this migration.
Bitcoin Mining Map (Cambridge Bitcoin Electricity Consumption Index)
I am a London-based reporter for Forbes covering breaking news. Previously, I have worked as a reporter for a specialist legal publication covering big data and as a
I am a London-based reporter for Forbes covering breaking news. Previously, I have worked as a reporter for a specialist legal publication covering big data and as a freelance journalist and policy analyst covering science, tech and health. I have a master’s degree in Biological Natural Sciences and a master’s degree in the History and Philosophy of Science from the University of Cambridge. Follow me on Twitter @theroberthart or email me at email@example.com
13 October, 2021 - 04:53pm
Chinese authorities banned the activity earlier this year causing miners to shut up shop or move overseas.
The United States now accounts for the largest share of mining, some 35.4 percent of the global hash rate as of end-August, followed by Kazakhstan and Russia, the data showed.
13 October, 2021 - 02:42pm
At the end of August, America accounted for 35.4% of the global hash rate, a measure of computing power used to extract the digital currency, according to a Cambridge Centre for Alternative Finance study published on Wednesday. That’s more than double the activity seen in April.
The surge in the country’s relative share has been driven by China’s move to whittle down the industry to control financial risk. In the early days of Bitcoin’s 2009 inception, the Asian nation was the base for the biggest miners tapping into cheap electricity from coal and hydro plants.
Now, Beijing’s intensifying efforts to curb the cryptocurrency market, announced in May, is paying off. China’s observed share of Bitcoin mining has effectively hit zero, the Cambridge researchers found. That’s down from as high as a 75% in September 2019 when Cambridge started collecting data. It’s also a marked decrease from the 46% level notched in April just this year.
There’s a strong possibility that covert mining is still happening in China, but routed through virtual private networks that make it appear the computers are operating in another country. Recent increases in the hash rate in Ireland and Germany are likely the result of miners using VPNs or proxy servers, according to the Cambridge research.
Miners are seeking cheap electricity and welcoming governments to fuel the boom in the virtual currency that’s approaching record highs again. The token is up more than 370% in the past year to trade around $54,650 with a total market value of about $1 trillion.
In Kazakhstan, the share of the hash rate hit 18.1% in August, up from 8.2% in April, while the Russian share grew to 11%, from 6.8% over the same period.
The researchers at the institute, which is part of the Cambridge Judge Business School at University of Cambridge, collect data on the IP addresses of mining operators from mining pools BTC.com, Poolin, ViaBTC, and Foundry.
China has declared all crypto-related transactions illicit, in toughest blow yet to the crypto industry.
Two of the largest crypto exchanges said they have stopped registering new users from mainland China on the back of ban.
For firms that invested heavily in cryptocurrencies and mining gear, the options for cashing in may be limited.