Another week closes for the hectic world of cryptocurrencies and some pieces are already beginning to fall into place for companies in the mining sector after the historic fourth halving.
In the spot market the matter is more complex and the price of the largest cryptocurrency remains relatively stagnant. There is no official theory about the current market situation. However, there are some very probable ones, such as the macroeconomic situation, which causes pressure on institutional investors.
In any case, what happens with the price of BTC will have a notable impact on the current reorganization process of the mining industry. Thus, the combination of the issue of prices with the particular news of the sector will be of great help to keep track of what is happening.
Discounted Mining Equipment after Halving
The popular ASICs are experiencing a palpable decline despite the high price of the coin. The reason for this, and it could not be any other, is the halving effect.
According to data from Luxor Technology, the main mining models used are experiencing a noticeable drop. The discount range varies between 28% and 35%. As is known, halving translates into a halving of the network’s payments for each block processed.
Thus, the teams now have a -50% profitability compared to what they had before the halving. Hence their prices experience declines. Price discounts are likely to become more pronounced if BTC declines from the current point.
Russian Parliament Considers Law for Digital Mining
According to Russian media, a proposal that seeks to impose standards on digital mining companies was debated last Friday. Among the points that are known about the proposal is that mining activity can only be carried out by legal companies from Russia. Likewise, they must commit to using the energy quota that the government estimates for the activity.
Some of the parliamentarians cited by the media assert that mining companies must fully identify themselves. This involves the amounts received and the wallets where your funds are stored. All of this will aim to prevent the use of these cryptocurrencies for illegal activities.
Paraguayan Senator Calls Digital Mining a “Gift from Heaven”
In recent months, rumors of a ban, or at least a limitation, on mining activity in Paraguay have been overwhelming. Despite this, there is also room for hope.
Some senior political representatives of the South American nation consider that digital mining represents a gift from heaven. This is because it consumes energy that the country produces in abundance and which lacks major demanders. With this, the mining industry becomes an invaluable contribution to the country’s treasury.
Cryptocurrency Mining Consumes Less Energy than Banking
One of the biggest stigmas against the mining business is precisely the high energy consumption it requires to operate. According to a recent investigation by the firm Payless Power, the banking system takes a total of 258.85 tera-watts per hour. Data centers, physical companies, ATMs and payment networks such as VISA are mainly responsible for this large consumption.
Meanwhile, all the world’s digital mining centers combined consume a total of 167.14 tera-watt hours per year.
Marathon Increases its Hashrate Target for 2024
Marathon, the powerful American firm, increased its target hashrate for the end of this year, 2024. Thus, from the range of 35-37 EH/s, its target rises to 50 EH/s, according to the company in a press release.
If it met expectations and reached that barrier, the mining group would have experienced 100% growth in 2024 alone. According to the firm’s management, the capacity of the purchased equipment exceeds initial estimates.
By Audy Castaneda
