Bitcoin-Mining: A Challenge for the Energy Transition
According to a report by IT BOLTWISE® x Artificial Intelligence, researchers from the University of Witten/Herdecke have raised concerns about the long-term impact of Bitcoin mining on the energy transition. While Bitcoin mining is often promoted as a way to utilize surplus renewable energy, the study suggests that this practice could hinder the broader adoption of clean energy solutions. The researchers argue that the availability of cheap energy for mining could lead to increased electronic waste and discourage investments in long-term clean energy technologies such as storage systems and grid improvements.
Maximilian Gill, one of the researchers, emphasized that Bitcoin mining might slow down the transition to fully renewable energy sources. This is particularly alarming given the current boom in the cryptocurrency industry, which already consumes significant amounts of energy. The study also highlights cases in countries like Iran and Georgia, where illegal crypto mining has caused power outages by overloading the grid. Despite efforts by companies like HIVE Digital Technologies to integrate more renewable energy into their operations, the report underscores the need for further measures to make Bitcoin mining more environmentally friendly. For more details, visit IT BOLTWISE® at https://www.it-boltwise.de/bitcoin-mining-eine-herausforderung-fuer-die-energiewende-2.html.
Stable Bitcoin Mining Revenues Despite Declining Market Share
IT BOLTWISE® x Artificial Intelligence reports that public Bitcoin mining companies generated stable revenues of $1.4 billion in January 2023, despite a reduction in their market share from 35% to 30%. This decline is attributed to operational constraints and a shifting competitive landscape. The network activity reached 780 EH/s, with the total hashrate increasing from 642 EH/s in September to 779 EH/s in December. Public miners faced challenges such as reduced hardware imports due to customs delays, which slowed the growth of the hashrate.
Companies like Iris Energy, Riot Platforms, and Canaan managed to achieve monthly growth in realized hashrate, while others experienced a decline. Riot Platforms, for instance, paused its 600-MW expansion project in Texas but still maintained a significant hashrate of 31.27 EH/s. Meanwhile, Core Scientific increased its Bitcoin reserves from 42 BTC in November to 510 BTC in January, while other companies like Cipher Mining liquidated more Bitcoin than they mined to fund capital investments. The report also notes an upcoming difficulty adjustment on February 23, which is expected to decrease by 1.2%. For the full report, visit IT BOLTWISE® at https://www.it-boltwise.de/stabile-bitcoin-mining-einnahmen-trotz-sinkendem-marktanteil-oeffentlicher-miner.html.
Jack Dorsey Bets on Bitcoin Mining with Block Inc.
Jack Dorsey, co-founder and Executive Chair of Block Inc., is optimistic about the company's new Bitcoin mining products, known as Proto, according to IT BOLTWISE® x Artificial Intelligence. These products aim to decentralize the mining hardware market and provide customers with more options. Proto includes ASIC chips, mining rigs, and developer tools, focusing on supporting smaller players and home mining. This initiative could challenge the dominance of Bitmain, the largest global manufacturer of Bitcoin mining chips.
Block Inc. reported a quarterly profit of $0.71 per share, below analysts' expectations of $0.87, with revenue of $6.03 billion, also falling short of the $6.29 billion consensus. The company holds 8,363 Bitcoins, valued at over $821 million, as part of its long-term investment strategy and to support transactions via its Cash App. Despite a 6.83% drop in after-hours trading, the introduction of Proto could significantly impact the Bitcoin mining hardware market by offering alternatives to existing products. For more information, visit IT BOLTWISE® at https://www.it-boltwise.de/jack-dorsey-setzt-auf-bitcoin-mining-block-inc-will-marktanteile-gewinnen.html.
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