With less difficulty, Chinese miners seek to make new connections while the business grows in other countries. Some Bitcoin mining companies want to take advantage of nuclear fusion as it is cheaper, inexhaustible, and less polluting.
The hash rate of Bitcoin continues to recover, which is one of the most important news events about its mining. Two contributing factors are the reconnection of miners after the ban in China and the new connections in the West.
Another relevant element is how the Ethereum EIP-1559 update impacts the miners of the second cryptocurrency on the market. They used to receive the rewards fees for transactions on that network. However, much of it is now burning, causing unrest in the Ether mining community.
The Hash Rate of Bitcoin Continues to Recover
The movement of the Bitcoin hash rate index continues to shape towards recovery. The ban on the activity in China and the first massive disconnections led the computing power to plummet from nearly 200 EH/s to 58 EH/s.
As the difficulty drops, miners are more willing to make new connections while the business grows in other parts of the world. The latter caused sudden increases in hash rate even up to 130 EH/s, but disconnections trigger the fall to 90 EH/s.
There are increasingly few miners to disconnect in China. At the same time, there are new connections while more Chinese miners are reconnecting in other countries. That will mark the defining trend towards the recovery of hash rate, which is currently 113 EH/s.
Ethereum Miners Get Less Money for their Work
Other relevant news about mining, not related to Bitcoin but Ether, is the London update. Controversy over EIP-1559 arose due to several improvement objectives in the Blockchain network of that project.
Despite the notable benefits of the update, many are not happy. Miners of the Ethereum native currency, Ether, are particularly hostile to the latest update.
Transaction fees used to go to miners’ wallets, but now a significant part of them burns. This process keeps the crypto community ecstatic due to the amount of Ether burned daily. That is generating a greater scarcity and appreciation of the price of the cryptocurrency. Miners feel that they are not receiving their reward for helping keep the network active.
US-Mining Firms to Mine with Nuclear Power
Nuclear fusion is one of the cheapest, inexhaustible and least-polluting forms of electricity generation. For that reason, some Bitcoin mining companies are looking to take advantage of this source.
American firms TeraWulf and Talen Energy Corporation agreed to mine with nuclear energy. In that sense, they created a firm representing them, whose name is Nautilus Cryptomine.
They said that their goal is to reach around 300 Megawatts of non-carbon mining capacity. They stated that this would achieve convergence between clean energy and the Bitcoin mining process.
An Analyst Predicts that Mining Will Be 100% Green by 2030
Anthony Scaramucci of SkyBridge Capital recently predicted that Bitcoin mining has a very bright future. He believes that this global business will operate using 100% clean energy by 2030.
His company bought bonds equivalent to 38,000 tons of coal, which numerous environmental advocates applauded. So far, this has been one of the hugest institutional investments to erase the carbon footprint of mining.
The current rise of Bitcoin above USD 46,000 proves that the pioneering cryptocurrency can rebound from its most dramatic drops. It is only a matter of time before it breaks its all-time high above USD 60,000.
By Willmen Blanco