Bitcoin mining: between new resources and abandonment
At a time in history where the crypto market is in the middle of an adolescent crisis between marketplaces jumping and a Bitcoin that is holding its own despite the situation (showing great strength and solid foundations), mining remains a tool that knows how to attract resources, but there are also those who leave the practice.
Bitcoin Mining: How It Works and Why It Matters
Bitcoin mining involves digging up hashes (specific codes) to be used to confirm new blocks to be added to the blockchain.
The hashrate index is the index that keeps its finger on the pulse of mining. Every quarter, this index takes a snapshot of the situation and recently launched it for July, August and September.
The report shows how hashing is paid less and less and how the rising energy costs paint an unfriendly picture for those who do mining.
Despite this, on October 31st there was a peak hourly high of 304 Eh/s as BTC had begun its decline below $20,000 bringing it to the current US$16,105.
In this context, there are those who bet everything on mining, which is nevertheless considered very profitable. This is, for example, the case with Arkon Energy, as in the CEO’s words Josh Payne describes the moment like this:
“The current market climate, with low prices for Bitcoin and mining equipment, presents an attractive opportunity to leverage our unique profitability and access to growth capital.”
Arkon Energy is a Sidney, Australia-based renewable data center infrastructure company.
With a fundraising campaign, it has grabbed as much as 28 million dollars to further invest in Bitcoin mining with renewable energy despite the current market crisis.
After this race for resources, the company bought Norway’s largest data centre, Hydrokraft AS, to set up a “vertically integrated green Bitcoin mining platform.”
Unfortunately, on October 6, the country’s government supported a proposal to abolish the tax containing electricity costs in mining that had been in place since 2016, but this did not stop Arkon Energy.
Energy investments
In addition to Arkon, China’s BTC Canaan has also recently communicated its willingness to expand its BTC mining capacity with global investment by also investing large sums in research and development.
Shell, one of the seven sisters in hydrocarbons and energy in general, is moving in the same direction by focusing on mining support.
The oil company has signed a two-year sponsorship deal with Bitcoin magazine for a think tank on cryptocurrency mining.
The agreement also stipulates that Shell will present at the Bitcoin conference innovative cooling solutions aimed at optimizing the Bitcoin mining process.
Shell Lubricants’ Head of Cooling and Immersion, Darin Gonzalezso:
“Shell Lubricants is committed to providing customers with carbon-reducing options, and one of the key benefits of immersion coolant is sustainability and renewable energy.”
For a world that invests a lot in miningthere are also those who row against it and those who lick their wounds.
Quebec’s energy chief (Canada), for example, has applied to the region’s government for power cuts to all the companies involved in cryptocurrency mining in an attempt to save energy in times of crisis.
Not just suggestions to pull the plug, but also resounding faces after things went wrong.
The case of BTC Iris Energy testifies exactly how mining does not always bring happiness.
The company is facing a $103 million insolvency filing against US investors.
The SEC explained that the company missed the restructuring and failed to repay investors within agreed deadlines.
The Kremlin is also not looking good for mining; in fact, it is well known that a month ago the Duma rejected the bill on the mining of digital currencies proposed by the New People party.
“On Mining in the Russian Federation” is the name of Bill No. 127303-8 which was aimed at regulating mining in the transcontinental country, but apparently Moscow will still have to wait.
