Mining Update November 10-12, 2021
Kazakhstan
Following China’s crypto bans earlier this year, Kazakhstan became the second largest bitcoin mining country behind the U.S.
Last week Kazakhstan approved crypto purchase limits for retail users, while it seems that the same won’t apply to institutions. Kazakhstan’s Minister of Energy Magzum Mirzagaliyev announced that “lawful crypto mines will not face restrictions or be disconnected from the national grid…”
View full article by Eliza Gkritsi (Nov. 10, 2021)
Following this huge and recent influx of miners, Kazakhstan’s energy grid is experiencing issues electricity shortages. Note that Kazakhstan was always an energy rich country.
The Ministry of Energy proposed a law to introduce limits for any newly licensed miners as well as limiting power to 100 MW nationwide for all crypto mining in the country.
View full article by Eliza Gkritsi (Nov 12, 2021)
Bitcoin mining difficulty - All time
With all the institutional scale bitcoin miners out there, it’s hard to imagine that it was once possible to mine on a home personal computer or laptop. Bitcoin must be mined with ASIC machines (Application-Specific Integrated Circuit). ASIC’s have one sole purpose- to mine whichever coin it was designed and programmed to mine.
Ethereum would have likely ran into the same situation eventually, if it weren’t for the upcoming switch to proof-of-stake.
The world is doubling down on crypto mining
From repurposing failing coal power plants to simply realizing the potential, more and more companies and even governments are getting into crypto mining.
Another crypto mining company MineOne has recently raised over $20 million in its first round of funding.
MineOne currently has 80,000 miners in operations based in Russia and Kazakhstan. Read more on MineOne by Aoyon Ashraf.
Russia to legalize crypto mining
Though mining cryptocurrency was not illegal, like most countries, regulations regarding crypto and mining are either unclear or still nonexistent. A committee was created and tasked to draft up crypto mining regulations.
Bitfarm purchased a 24 MW hydropower plant in Washington state
Ben Gagnon, Chief Mining Officer of Bitfarms, stated, “The facility’s hydro power is expected to cost approximately 25% less than the average cost of power at our Québec farms, making it the most cost-effective source of power currently in our portfolio and reducing our corporate wide average to below 4 US cents/kwh.”
View full bitfarms announcement
