Bitcoin Mining Headlining News for August 2021
August went by fast.
Well, that is a subjective opinion. The last month of summer was, as always, an exciting time for cryptocurrency.
What’s objective is that there have been specific defining trends of the month. Bitcoin is never a dull place because of the constantly shifting landscape. There is always fodder for crypto enthusiasts from regulatory developments, miner activity, price trends, and much more.
The fascinating entry of Bitcoin mining and taxation into the debate over the U.S. Infrastructure Bill in the Senate shows that Bitcoin has a broader appeal than ever.
Its impact is now undeniable as it has a significant presence in the economic and even political scene.
Let’s look at some of the major stories of the month:
- Jack Dorsey Says He Is “Trying” Bitcoin Mining
That Jack Dorsey is a crypto enthusiast is no secret. The Twitter and Square Inc. CEO has repeatedly talked up the importance of distributed ledger technologies.
Square is one of the key institutional investors in Bitcoin, with over $150 million worth of Bitcoin as part of its portfolio.
Dorsey confirmed that he, too, is trying mining. He touted the importance of the project to his life.
Accordingly, the tech billionaire has taken another bold step giving Bitcoin a seat on the highest financial and tech tables. His investments in green Bitcoin mining could be crucial as the industry pivots towards renewable energy.
- Iran to Lift Bitcoin Mining Ban in September
When China banned Bitcoin mining, miners worldwide were anxious whether there would be a domino effect. One of the countries that had also taken a harsh stance was Iran.
In a welcome development, Iran has announced that it intends to resume mining output in September.
Restrictions had come in place as an electricity preservation policy during the hot summer months.
Tavanir, the country’s power generation organization, announced the easing of this policy in early August. Since May, the government has restricted mining, and this lift is a sigh of relief for miners in Iran.
Some are still wondering whether China’s decision to ban mining will affect policy elsewhere. Bitcoin needs not only asset decentralization but also the maximum possible geographical decentralization for proper security.
- Coinbase Is Buying $500 Million in Crypto on Its Balance Sheet
The largest American exchange, Coinbase, announced in August that it would purchase $500 million in crypto on its balance sheet.
Coinbase will allocate 10 percent of its quarterly profits to a crypto assets portfolio.
You would be forgiven for wondering why a cryptocurrency exchange makes news.
This move signifies Coinbase is doubling down on crypto by putting their money where their mouth is. The actual volumes of the purchases could be significant for the prices of crypto assets like Bitcoin.
- North American Miners Achieve Record Highs in Mining Rewards
China’s crackdown on miners was a systemic shock to the Bitcoin mining hash rate.
It gave miners in other countries a unique opportunity to grow, and the numbers are beginning to reflect that.
Accordingly, North American miners have experienced a surge in Bitcoin mining profits.
A company like Riot Blockchain increased its revenue in the second quarter of 2021 by 35 percent and Marathon Digital Holdings by 186 percent.
For the latter company, some of the appreciation came because the company was already thinking of expanding even before news of the Chinese ban.
Regardless, it provided an unwitting boost to miners in the region. The surge in profits came at a time when prices were not exactly stellar.
Now that Bitcoin prices are in the $50k range again, it will be fascinating to observe North American miners’ numbers for the final quarter of the year.
- Bitcoin Mining in Its “Golden Age”
The summer was a chaotic time for Bitcoin. News of China’s crackdown and energy concerns over Bitcoin created uncertainty and significant selling pressure.
Accordingly, there was some stuttering in prices, and this was discouraging. However, miners who kept the faith saw prices recover in late July and carried on in August.
The lesser competition meant that existing miners achieved higher profitability. The remaining participants got impressive rewards.
Gerson Martinez, a former derivatives trader and market maker for Morgan Stanley, told Yahoo News that we might look back at this time as the golden age of Bitcoin mining.
Some thought that mining was on the decline after the halving decline of 2020 and increased competition.
However, a rapid turnaround in prices followed by developments in China changed the landscape dramatically. Miners hope that this golden age will carry on for as long as possible.
- Rural Texas Becoming a Sweet Spot for Bitcoin Miners
The Guardian did an excellent piece about the Bitcoin mining boom in rural Texas. The lone star state offers space in rural areas and abundant cheap electricity.
Notably, some rural areas like Dickens County are mostly cattle country, but with little development.
Therefore, the little economic activity provides an opening for Bitcoin miners. Local authorities are welcoming them because they can create some jobs for locals and bring tax revenue.
Texas is also unique because its power supply is unregulated. Bitcoin miners can choose between different energy suppliers who have the incentive to provide low rates for customers.
The state also obtains almost 20 percent of its energy from wind power, meaning miners who favor renewable energy can find alternatives.
- Proposed Bitcoin Mining ETF to Reduce Carbon Footprint by Planting Trees
Bitcoin has been inching ever so closer into the financial mainstream. A Bitcoin exchange-traded fund can provide investors exposure to Bitcoin prices without having to hold Bitcoin itself. The remaining hurdle is for regulators to give such ETFs the all-clear.
Canadian company Accelerate Financial Technologies Inc. intends to launch a Bitcoin ETF with a twist. This ETF will aim to be carbon-negative by planting trees to offset the unfavorable environmental impact of cryptocurrency mining.
Accordingly, the fund promises to plant 3,450 trees for every CAD $1 million that investors put into the fund. This marketing angle is no coincidence. It comes at a time when Bitcoin faces high scrutiny over perceived energy inefficiency.
This ETF will be part of a growing class of environmentally conscious Bitcoin miners. Incorporating environmental utility and social governance into the firm’s directional strategy shows a company that has read the room.
VBit Mining Is Committed To Mining Sustainably
One of the common trends in these headlines is the quest for miners to achieve a lesser carbon footprint in their activity. This goal is noble and reflects a coming-of-age moment for the entire sector.
VBit Inc has always championed green mining. The idea of sustainable mining is not only practical but also viable. Since commencing our operations in 2018, we have focused relentlessly on mining without leaving a significant carbon footprint.
Accordingly, we built data centers in data America to achieve these ends. The facilities also provide hosted mining centers for our customers who wish to get started. All they need to do is purchase hardware, and the machines do the rest of the work.
We source our equipment from Bitmain, which has the distinction of producing the best mining rigs in the world. Our commitment to mining allowed us to have the foresight in equipment and electricity sourcing that has taken us this far. Visit VBit Mining Shop to learn more about Bitcoin mining!