Profits from Bitcoin mining have increased by around 150% over the last two years. Technological innovation has contributed to centralizing the activity and helping miners resist legal regulations.
The Bitcoin mining activity is still struggling amid legal regulations, energy restrictions, and local circumstances. However, it is betting on the introduction of technological and business innovation.
For example, hash rate or processing power has become a commodity or exchangeable asset that miners can transfer and locate geographically.
According to that thesis, people can buy Bitcoin (BTC) with electricity by providing miners with a fixed energy supply.
In the last few years, Bitcoin miners have profited as the increasing scarcity of that cryptocurrency has allowed its appreciation. Even though they earn fewer coins than before, their value tends to increase over time. The gains from mining BTC are currently around 150% higher than two years ago.
However, the growth of Bitcoin mining is evident in both commercial success and technological innovation. New and more efficient mining equipment, with a power of 100 terahashes per second (TH/s), has emerged in the market.
Technological advances will allow mining to become decentralized as more actors can participate in the confirmation of transactions on the Bitcoin network. That will be possible through a new mining protocol and more advanced microprocessors.
Mining Bitcoin from home will be increasingly common if users follow these tips. Experts recommend having an adequate electric system consisting of a circuit of 20 amps and around 240 watts. They also advise remembering that it is necessary to exchange some bitcoins for fiat money to pay operational costs.
However, that does not exclude big players like Blockstream and Tesla, who will mine Bitcoin aided with solar power.
The Regulatory Landscape Is Uncertain in Mexico and Venezuela
There is great enthusiasm about Bitcoin mining among businesspeople from Mexico like Ricardo Salinas and Venezuelan Ricardo Carmona. They recently said that the activity might be more profitable for large investors than smaller ones.
Electricity consumption rates and the inequality in the access to energy sources might have something to do with that. Given that reality, the specialists also warned that it is necessary to establish a clear regulatory framework.
Some Bitcoin miners from Venezuela are waging a legal battle against the National Cryptocurrency Superintendence (Sunacrip). They argue that there is discrimination regarding the seizure of some mining equipment.
Theo Toukoumidis is the founder of DoctorMiner, a company providing services to Bitcoin miners in Venezuela. The executive pointed out that the country has much potential for developing that field. However, he believes there must be more regulatory clarity, communication between regulators and the private sector, and the need to convey confidence worldwide.
Kazakhstan is cornering Bitcoin miners from the electricity consumption and finance perspectives. The Asian country, which welcomed Bitcoin miners fleeing China in 2021, is currently considering charging miners more taxes as the price rises.
Bitcoin is trading at around USD 39,904 and has accumulated a 6.1% loss in the last 24 hours. Its trading volume is above USD 39.46 billion, and its market capitalization is approximately USD 758.94 billion.
By Alexander Salazar
