Značka: Bitcoin Mining

Valkyrie aims for ETF linked to Bitcoin mining firms on Nasdaq

Crypto asset manager Valkyrie has filed an application with the United States Securities and Exchange Commission to trade an exchange-traded fund (ETF) with exposure to Bitcoin mining firms on the Nasdaq Stock Market.In a Wednesday SEC filing, Valkyrie said its Bitcoin Miners ETF will not invest directly in Bitcoin (BTC) but at least 80% of its net assets would offer exposure to the crypto asset through the securities of companies that “derive at least 50% of their revenue or profits” from BTC mining or providing hardware or software related to mining. The filing added Valkyrie would invest up to 20% of the ETF’s net assets in companies holding “a significant portion of their net assets” in Bitcoin. Valkyrie launched a Bitcoin Strategy ETF in October 2021, which offered indirect exposure to BTC with cash-settled futures contracts following SEC approval for a similar ETF from ProShares. At the time of publication, shares of the fund traded on the Nasdaq for $14.93, having fallen more than 40% since opening on Oct. 22. In 2021, the SEC approved investment vehicles linked to BTC derivatives for the first time, but hasn’t given the green light to any Bitcoin spot exchange-traded fund in the United States. The Valkyrie Bitcoin Miners ETF resembles the Digital Asset Mining ETF proposed by asset manager VanEck in December 2021, which plans to invest 80% of its total assets in securities from crypto mining firms — the regulatory body has until Feb. 14 to reach a decision on the fund or extend the deadline.Related: Why now? SEC took eight years to authorize a Bitcoin ETF in the USWhile many crypto ETF applications are still under consideration in the United States, Canadian regulators have approved ETFs with direct exposure to crypto from Fidelity, Purpose Investments and Evolve Fund Group. At a House of Representatives committee hearing in December, former Acting Comptroller of the Currency Brian Brooks said the United States was “unquestionably” behind other countries in approving crypto ETFs.

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Yet another solo Bitcoin miner solved a valid block, earning a reward worth over $220,000

Another Bitcoin (BTC) miner from the Solo CK mining pool has solo mined a new block on the Bitcoin blockchain, earning a block reward of 6.25 BTC (over $220,000 at current prices) as a result. The event took place on Monday at a block height of 720,175.Solo mining consists of attempting to validate blocks by a single miner, without teaming efforts with other miners on a mining pool, and running a full blockchain node. Without significant hashing capabilities, the odds of validating a block tend to be extremely unlikely.To increase these odds and avoid the costs associated with solo mining, miners generally come together in pools to combine their hash power, increasing the chances of validating a block and ultimately sharing the spoils if they succeed.According to a recent tweet from CKPool admin Con Kolivas, this solo miner had a hash power of approximately 86 terahashes per second. Hash power determines the computational speed at which a computer can perform the cryptographic functions needed to mine cryptocurrency and validate a block for proof-of-work blockchains like Bitcoin. Congratulations to another miner with approximately 86TH solving a solo block on https://t.co/UWgBvLkDqc ! There are a lot more miners now on the solo pool and if enough people are mining solo, someone will eventually be the lucky one as here. https://t.co/Hqte2achR4 pic.twitter.com/0ZT635LicD— Dr. Con Kolivas (@ckpooldev) January 24, 2022The miner in question had less hash power than a single S9 mining machine; a relatively small amount of computational power, making this a very unlikely event.Even more remarkable is the fact that only two weeks ago, another solo miner from the Solo CK mining pool also completed a similar task by successfully solving a valid block. “To say this is very rare is an understatement,” Bitcoin council member Hass McCook told Cointelegraph at the time.Despite its name, CKPool isn’t a regular mining pool, it’s a service that allows solo mining without dealing with the costs and troubles of running a full Bitcoin node.

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Bitcoin records all-time high network difficulty amid price fluctuations

The Bitcoin (BTC) network has recorded a new all-time high mining difficulty of 26.643 trillion with an average hash rate of 190.71 exahash per second (EH/s) — signaling strong community support despite an ongoing bear market.The Bitcoin network difficulty is determined by the overall computational power, which co-relates to the difficulty in confirming transactions and mining BTC. As evidenced by the blockchain.com data, the network difficulty saw a downfall between May and July 2021 due to various reasons including a blanket ban on crypto mining from China.BTC network difficulty. Source: Blockchain.com.However, as the displaced miners resumed operations from other countries, the network difficulty saw a drastic recovery since August 2021. As a result, on Jan. 22, the BTC network recorded an ATH of 26.643 trillion. Data from BTC.com estimates that the network will continue to grow stronger by attaining another ATH in the next 12 days — with a network difficulty of 26.70 trillion.Estimated BTC network difficulty in the next 12 days. Source: BTC.com.In the last four days, F2Pool has been the highest contributor to the hash rate by mining 88 BTC blocks, followed by Poolin at 76 blocks. As of yesterday, the average fee per transaction is roughly $1.58, a value that historically peaked at $62.78 back in Apr. 2021.Related: Bitcoin could outperform stocks in 2022 amid Fed tightening — Bloomberg analystDespite the federal pressure for tighter monetary policies around cryptocurrencies, Bloomberg commodity strategist Mike McGlone suggests that BTC has a fighting chance to come out on top as investors recognize its value as a digital reserve asset. As Cointelegraph reported, McGlone believes Bitcoin is in a unique position to outperform in an environment where stimulus reduction is usually considered negative for risk assets:“Cryptos are tops among the risky and speculative. If risk assets decline, it helps the Fed’s inflation fight. Becoming a global reserve asset, Bitcoin may be a primary beneficiary in that scenario.”

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Lawmakers explore Bitcoin mining efficiency, broader crypto policy issues during Congress hearing

On Jan. 20, the Oversight and Investigations subcommittee of the U.S. Congress House Energy and Commerce Committee convened a hearing to investigate the environmental effects of cryptocurrency mining. Despite the narrow focus, the conversation that ensued – which many industry experts appraised as a meaningful educational experience for the lawmakers – touched upon a range of blockchain-related issues and themes beyond energy consumption. Here is how it went down, and what comes next.Witnesses set the frameFollowing the opening remarks, the hearing kicked off with the witnesses delivering their testimonies. Bitfury CEO Brian Brooks made a point that it was up to the market to decide on the most productive ways to use the already produced energy and maintained that proof-of-work (PoW) is the consensus mechanism that is best suited to produce true decentralization of a blockchain network.In contrast, Cornell Tech professor Ari Juels, while speaking favorably of blockchain technology and Bitcoin (BTC) in particular, maintained that proof-of-work is unnecessarily wasteful while the downsides of the alternative proof-of-stake, or PoS, mechanisms are largely theoretical.John Belizaire of Soluna Computing stated that Bitcoin’s energy consumption should be seen as a feature rather than a bug because crypto mining can create efficiencies by using the excess renewable energy. Steve Wright, a former general manager of a public utility district in Washington state, shared his experiences of interacting with crypto miners who flocked into the area due to abundance of cheap electricity, while former acting assistant secretary of the U.S. Treasury Gregory Zerzan introduced multiple uses of blockchain technology and said that regulatory uncertainty could hurt its development.Representatives then took to the floor with statements and questions. A few used their time for partisan attacks and political grandstanding, yet most made an honest effort to ask questions that either tackled the energy-related issues at the core of the hearing or sought broader context on the uses and potential applications of blockchain technology.Getting to the bottom of crypto miningCommittee chair Frank Pallone and Oversight Subcommittee chair Diana DeGette interrogated the witnesses on how wasteful crypto mining really is and how to make sure that communities do not bear the costs of energy consumption upticks caused by miners. Congresswoman Jan Schakowsky expressed her concerns about the use of fossil fuels to power mining rigs. Witnesses responded by reassuring the lawmakers of the overall green trend in which the mining industry is evolving, particularly in the U.S.Some Representatives sought to get a better understanding of the efficiencies generated by cryptocurrency mining in order to determine whether they justify the associated energy use. Congresswoman McMorris Rodgers inquired about the larger blockchain industry’s capacity to generate new jobs and protect user data.Florida Representative Neal Dunn showed off some advanced knowledge of Bitcoin economics when he asked Brian Brooks about the relationship between BTC halving and mining efficiency. Dunn also stated that the nation needs to produce more energy anyway, and powering innovative industries such as crypto mining is a good use of this growing capacity.Congressman Morgan Griffith explored the geopolitical aspect of Bitcoin mining, concluding with a supposition that China’s mining ban resulted not so much from energy efficiency concerns but rather from the Chinese government’s dislike of the idea of decentralization. The resulting exchange with Gregory Zerzan resulted in the witness stating that “Bitcoin equals freedom, and there are a lot of places in the world that don’t like freedom.”Industry receptionWhile the hearing did not come across as a massive breakthrough, most industry observers highlighted the educational component of the exchange, as well as its role in moving the policy conversation around crypto mining forward.In an interview with Cointelegraph after the hearing, witness John Belizaire said that the committee members’ readiness to thoroughly explore the complex matter at hand has rendered the discussion productive:”Chairwoman DeGett set the right tone from the very beginning, the tone of ‘we are here to learn.’ Representatives asked good questions and wanted to get educated on these problems.”Belizaire added that he was surprised by some questions related to the possibility of using less environmentally friendly energy sources to power Bitcoin mining in the future, saying that “You have to put it into the context of the global movement taking on climate change.”John Nahas, vice president of business development at Ava Labs, the company behind smart contracts platform Avalanche, noted that the hearing, having started slow, eventually evolved into a “meaningful conversation.” Nahas commented:”It’s clear to me that legislators are seeing the value of blockchains. It was refreshing to see that they understand the numerous areas, like health care records and energy management, that will make our lives more efficient and secure.”John Warren, CEO of U.S.-based Bitcoin mining company GEM Mining, said that the hearing was “an important step in educating U.S. lawmakers on the benefits of the rapidly growing cryptocurrency industry, and mining in particular.”Consonant with Belizaire’s testimony and some of the Representatives’ comments, Warren believes that the migration of mining activity into the U.S. is a favorable scenario in terms of reducing the industry’s environmental impact:”Greater oversight in America, coupled with ongoing innovation, will ensure U.S. companies lead the way in taking steps to operate as efficiently as possible and thereby further reduce mining’s environmental impacts.”Policy implicationsWhile nothing about this hearing was particularly groundbreaking, the effects of such interactions between Congress and the industry tend to compound. It is consequential that over time, elected officials across a varied set of specialized committees – and not only those engaged in financial oversight – get exposure to pro-blockchain industry rhetoric and arguments.In the near-term, however, this interaction shouldn’t be expected to result in any specific legislation.Ava Labs’ Nahas commented:”This was mostly informational and the early stages of any policy process. However, policymakers should continue to engage with experts and objective resources to better understand emerging blockchains and their ability to secure billions of dollars in value while consuming just a small fraction of proof-of-work chains.”Still, the arguments that were raised around decentralization, the dangers of overregulating the crypto space, and various efficiencies that blockchain technology can engender will stick with at least some of those who participated in the hearing, adding to their long-term policy vision.

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Witnesses address energy impacts of crypto mining during House hearing

Five industry experts appearing before the United States House Energy and Commerce Oversight Subcommittee had different views on how lawmakers should address the energy consumption of cryptocurrencies.In written testimony released before a Thursday hearing on “Cleaning Up Cryptocurrency: The Energy Impacts of Blockchains,” former Comptroller of the Currency Brian Brooks argued that the energy consumption of Bitcoin (BTC) mining was “economically productive,” given other assets including gold required roughly the same amount of energy for mining, with the “a host of other environmental concerns.” In addition, Brooks said that the traditional global banking system consumed roughly 2.5 times the amount of power to produce the same amount of value BTC does at its current market capitalization.John Belizaire, the founder and CEO of Soluna Computing and another witness appearing at the hearing, said that from an energy perspective, the miners and computers needed to power crypto are “not a waste” and could encourage the development of renewable energy sources. The CEO said that, unlike other banking systems, Bitcoin mining included the option of turning the systems off when necessary, giving miners the ability to absorb excess energy from an area’s electrical grid rather than straining it.Cornell Tech professor Ari Juels, who has often been a critic of crypto mining as it currently stands, was supportive of the crypto space as a whole but argued in favor of “energy-efficient alternatives” rather than the proof-of-work (PoW) common for mining. He added that the Ethereum blockchain’s transition to proof-of-stake (PoS) would likely consume “far less electricity” and have features including smart contracts and nonfungible tokens — unlike Bitcoin.“Bitcoin does not equal blockchain,” said Juels. “The tremendous promise of blockchain technology does not require Bitcoin or its energy-intensive component called proof-of-work.”Steve Wright, a recently retired former general manager of the Chelan County in Washington, similarly hinted that mining firms should consider “mechanisms to assure cryptocurrency production is encouraged toward efficient outcomes as early as possible.” Wright noted that the high value of clean energy costs in the area seems to be pushing many crypto miners towards carbon-emitting, fossil-fired sources of power for “at least the near term.”Related: Bitcoin mining becomes more sustainable: Mining Council’s Q4 surveyU.S. lawmakers seem to be giving crypto and blockchain a great deal of attention as the space grows. In December, the Senate Banking Committee held a hearing on stablecoins and how the U.S. might participate in the race to adopt digital currencies. Brooks also testified at a House committee hearing that same month on digital assets’ role in the future of finance.“Although digital tokens are a highly speculative and volatile asset class, they also represent the promise of a more open, more widely shared internet,” said Gregory Zerzan, a shareholder at business law firm Jordan Ramis. “If policymakers take a cautious approach and foster a pro-innovation environment, the rewards for consumers, investors and all Americans are likely to be great.”

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Russian central bank proposes blanket ban on crypto mining and trading

In a report published on Thursday, The Central Bank of Russia has called for a blanket ban on domestic cryptocurrency trading and mining.The report titled “Cryptocurrencies: trends, risks, measures” compares cryptocurrencies to a Ponzi scheme and calls for a complete ban on their use throughout Russia. The authors claim that cryptocurrencies are highly volatile in nature and are being used as a tool for illegal activities. The report also warned that crypto could pose a risk to financial sovereignty and could aid people in taking money out of the national economy. The report read:“Potential financial stability risks associated with cryptocurrencies are much higher for emerging markets, including Russia.” The Russian central bank demanded a complete ban on over-the-counter (OTC) trading desks, crypto exchanges as well as peer-to-peer exchanges. The report also called for reinforcing the crypto payment ban and the introduction of strict punishment for any violations.The central bank report further proposes a complete crypto mining ban in the country, claiming that mining activities create new supply which leads to demand for other crypto services such as exchanges. Crypto mining could undermine the existing green energy agenda and also disrupt Russia’s energy supply. The official paper read:“Crypto mining creates a non-productive electricity expenditure, which undermines the energy supply of residential buildings, social infrastructure and industrial objects, as well as the environmental agenda of the Russian Federation.”Russia became the third-largest Bitcoin (BTC) mining hub following China’s crypto mining ban in May. If acted upon, the latest proposal for a blanket ban on crypto mining in the country could lead to yet another realignment on the world’s crypto mining map.According to a Bloomberg report, Russia’s Federal Security Service (FSB) was instrumental in advancing the ban, having lobbied central bank governor Elvira Nabiullina to pursue a hardline course. The report claims that the FSB is worried about the increasing number of untraceable funding to opposition parties and media via crypto.The report is framed as an invitation for public discussion, with the deadline for comments and suggestions from interested parties set at March 1, 2022.Related: Russia prioritizes CBDC ruble as overall crypto outlook seems positiveThe central bank of Russia has been skeptical of cryptocurrencies for quite some time. However, what could be seen as signs of president Vladimir Putin’s interest in and understanding of crypto led some to believe that the Russian government might choose to regulate the decentralized industry rather than ban it.

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MXC’s 200% gain hints that LoRaWAN IOT mining projects could rally in 2022

Cryptocurrency mining has become a hot topic of conversation over the past couple of years due to its lucrative nature and the impact the industry has on the environment. The emergence of Web3 and the increased presence of Internet of Things (IoT) devices has led to a new class of low-cost mining protocols with low-power network technology. These include LPWAN or LoRaWAN which are designed to transmit low bit rate data over long distances. One such protocol that has been gaining traction in recent months is MXC, a Web3 infrastructure protocol designed to provide geolocation-based LPWAN coverage to IoT devices around the world Data from Cointelegraph Markets Pro and TradingView shows that since hitting a low of $0.046 on Jan. 1, the price of MXC has seen a 200% rally to a new all-time high of $0.139 on Jan. 19. MXC/USDT 1-day chart. Source: TradingViewThree factors adding to MXC’s building momentum include the earning capability of the MXC miners that can mine multiple cryptocurrencies simultaneously, the introduction of one-week shipping for new mining devices and an expanding, global ecosystem of partners and independent mining nodes. Mining diversity could be an advantageThe IoT mining sector has seen many new entrants become established in recent years with projects like Helium (HNT) and Nitro Network (NCASH) offering LoRaWAN based networks that transfer data in exchange for the native HNT and NCASH tokens. MXC has chosen a different route that utilizes a low-power wide-area network (LPWAN) to offer coverage for IoT devices that can also mine multiple cryptocurrencies, including Bitcoin (BTC), MXC and DataHighway (DHX) simultaneously. The MXC network uses its MatchX M2 Pro LPWAN miner, which is available for purchase on their website at a price of € 2,499 or on Amazon for a price of $3,299, alongside the DataDash app, which allows users to manage its miners and rewards. In terms of devices capable of mining Bitcoin, the M2 Pro miner requires 5 watts of power as compared to the 3,250 watts required by the Bitmain “Antminer S19 Pro.” This makes the M2 better suited for individuals that don’t have a lot of funds to invest in a hefty mining operation. According to one user’s self-report, the M2 Pro miners have been earning a yield of $8 to $10 dollars per day and estimates that it will take a total of 8 months to recoup the original investment. Easy access to M2 ProAnother reason for the building momentum for MXC has been the introduction of one-week shipping for new M2 Pro orders. Shipping Announcement Shipping your M2 Pro takes only 7 days!Applies for everyone on the globeGet your M2 Pro here: https://t.co/8WiTQWqxi2 pic.twitter.com/oArEmi65AV— MatchX (@matchx_iot) January 19, 2022For LPWAN networks, achieving widespread coverage is key to the overall health and long-term viability of the network. Having an easy way for interested parties to obtain mining equipment helps to increase the rate of growth. Delays in miner shipments have been an issue for other networks, including Helium, which has led to hard feelings and some cancellations as users lament the lost-mining time and funds that could have been put to more productive use elsewhere. As a result of the access interested parties have in obtaining the M2 Pro, the MXC network has now reached 18,186 nodes worldwide. MXC node network. Source: MXC MapperRelated: EU securities regulator calls for proof-of-work crypto mining banNew partners and the launch of F-NFTsIn addition to an expanding network, MXC has new partner projects joining its network and there are plans to integrate “functional nonfungible tokens” or F-NFTs.The protocol has partnered with Matcha and the team is currently in talks with Huobi exchange to create promotional offers for international users. MXC has also revealed a new partnership with Random Network which will provide the community with a dashboard for the data that MXC distributes from its global network of M2 Pro miners. MXC is launching Functional #NFTs, also known as F-NFTs!These will change how we grow the global #DataRepublic, enhancing the use of the network + viewable directly on the DataDash app.More here: https://t.co/BxRoZgUVMF pic.twitter.com/k0eIBBLQMD— MXC Foundation (@MXCfoundation) January 13, 2022

On top of collaborating with other entities, MXC recently unveiled plans to launch F-NFTs in an effort to bring “hardware to the metaverse” and expand the community and functionality of the “MXC Data Republic.”The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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EU securities regulator calls for proof-of-work crypto mining ban

Erik Thedéen, the vice-chair of the European Securities and Markets Authority has raised concerns over the growing use of renewable energy for Bitcoin mining.In a recent interview with the Financial Times, Thedéen said that Bitcoin (BTC) mining has become a “national issue” and warned cryptocurrencies could pose a risk to climate change goals. He called upon European regulators to take special exception to proof-of-work mining which is primarily used by Bitcoin and a few other forked altcoins. He also advocated for proof-of-stake as a better, energy-efficient alternative:“We need to have a discussion about shifting the industry to a more efficient technology.”Melanion Capital, a Paris-based alternative investment firm, has addressed the growing call for a ban on PoW mining back in November 2021, called it “completely misinformed”The investment firm said that due to the decentralized nature of Bitcoin, there is no lobby or group to defend its interests, which “should not be taken as an opportunity to implement measures rendering illegal an industry for its lack of defensive powers.”Related: Swedish call to ban crypto mining ‘completely misinformed,’ says fund managerThe Bitcoin network’s energy usage was one of the most controversial topics in 2021 that saw the likes of Elon Musk, Jack Dorsey and Michael Saylor engage in several debates. Tesla even discontinued the Bitcoin payment option citing the Bitcoin network’s energy usage. However, unlike Thedéen, most of the critics until now had no issue with clean energy usage. Musk has claimed that if 50% of the Bitcoin network’s energy comes from renewable sources, Tesla would rethink adding a Bitcoin payment option.China’s Bitcoin mining ban in May last year turned out to be a boon for the ecosystem, as it not only disintegrated the highly centralized Bitcoin mining industry, it also helped in moving towards renewable energy usage. According to the Q3 report from Bitcoin Mining Council, renewable energy usage by the Bitcoin network reached 58% by the third quarter of 2021.Global Sustainable Energy Index Source: BMC Report

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Bitcoin mining becomes more sustainable: Mining Council's Q4 survey

The percentage of the global Bitcoin mining industry running on renewable power increased by 1% to 58.5% in the fourth quarter of 2021 according to new data. The Bitcoin Mining Council (BMC) announced the findings of its fourth quarter survey on Jan. 18. The survey focused on three metrics: sustainable power mix, technological efficiency and electricity consumption. Q4 #Bitcoin Mining Council Survey Confirms Improvements in Sustainable Power Mix and Technological Efficiency. Estimated sustainable energy mix was 58.5%. Join us at 5pm ET today for a full briefing.https://t.co/t1gTZV9GtT— Michael Saylor⚡️ (@saylor) January 18, 2022Founded in May 2021, the BMC is a voluntary global forum of Bitcoin mining companies such as Bit Digital, BitFury, Bitfarms and Atlas Mining, and other industry organizations. Michael Saylor, the Founder and CEO of MicroStrategy, and a key member of the BMC noted:“This quarter we saw the trend continue with dramatic improvements to Bitcoin mining energy efficiency & sustainability due to advances in semiconductor technology, the rapid expansion of North American mining, the China Exodus, and worldwide rotation toward sustainable energy and modern mining techniques.”The voluntary survey compiled sustainable energy information from miners accounting for more than 46% of the global Bitcoin network. According to the survey, the members of the Mining Council itself are harnessing electricity with a sustainable energy mix of 66.1%. The self-reported data was then used to estimate the global Bitcoin mining industry’s sustainable energy mix was approximately 58.5% during Q4, an increase of one percentage point on Q3’s figure. The industry’s estimated technological efficiency grew by 9% as well, to 19.3 petahash per MW. Co-founder of Core Scientific and the BMC Darin Feinstein noted that the hashrate of the BMC participating members increased by 77% in Q4. Related: Georgian citizens made to swear an oath to stop mining cryptoThe environmental impacts of Bitcoin mining have been heatedly debated for some time and U.S Congress is now preparing to take a thorough look at the energy impacts of Proof of Work blockchains. The House Committee on Energy and Commerce has just announced key witnesses to testify on the energy and environmental impacts of crypto mining at a hearing on Jan. 20.Notable witnesses include the CEO of BitFury Brian Brooks, Cornell Tech professor Ari Juels and the CEO of Soluna Computing John Belizaire. Bitcoin miners are increasingly looking for sustainable energy sources as the pressure mounts from the public, shareholders and governments. Investors like Shark Tank star Kevin O’Leary, also known as Mr. Wonderful, say they are looking to purchase stocks of mining companies that use sustainable energy. One avenue that could be explored further is nuclear energy. At the Bitcoin & Beyond Virtual Summit in early November, Vice President of Griid Harry Sudock said nuclear energy could present an opportunity to introduce large amounts of clean, carbon-free energy.

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Former pro-crypto CoC Brian Brooks to testify in a House hearing on the energy impacts of mining

As the U.S. Congress prepares to take a thorough look at the energy use of crypto mining, the list of witnesses for the Thursday hearing contains more proponents of blockchain technology than its outright critics.The House Energy and Commerce Oversight Subcommittee announced a hearing on “Cleaning Up Cryptocurrency: The Energy Impacts of Blockchains” last week, with the event itself scheduled for Thursday. The focus of the hearing will be on the energy and the environmental effects of crypto mining, specifically as it relates to networks that use a proof-of-work, or PoW, consensus mechanism.A Committee on Energy and Commerce staff memo released on Jan. 17 revealed the list of witnesses invited to testify. Among the five experts on the list, only one — Cornell Tech professor Ari Juels — can be definitively categorized as an outspoken critic of Bitcoin (BTC) mining in its current form. Ironically, Juels is one of two authors of a 1999 paper that defined and introduced the term “proof-of-work.”Another entry on the witness list is Brian Brooks, former U.S. Comptroller of the Currency and Binance.US CEO who in Nov. 2021 joined BitFury, a major player in the crypto mining industry, as CEO. Also notable is the presence of John Belizaire, CEO of Soluna Computing, a firm that is focused on developing green data centers for batchable computing. In a Jan. 6 blog post, Belizaire lauded Bitcoin’s energy consumption as a “feature, not a bug,” arguing that it provides a viable mechanism for absorbing excess renewable energy.Utility providers will be represented by Steve Wright, a recently retired former general manager of the Chelan County, Washington state, public utility district. During his tenure, Wright took steps to attract cryptocurrency miners to the county.Gregory Zerzan, Jordan Ramis shareholder and former acting assistant secretary of the U.S. Treasury, once noted that concerns around Bitcoin mining could be addressed by “transitioning away from fossil fuels.”The memo itself offers a rather balanced overview of energy-related concerns associated with PoW mining, although it also reiterates certain statements that have been questioned by recent research. For one, the authors stated that the energy consumption and environmental impact of crypto mining may grow in the coming years — a claim that was countered in Bitcoin Policy Institute’s fact-checking brochure.Jake Chervinsky, head of policy at the Clockchain Association, tweeted that the memo was “not all bad, but commits basic errors.”The House E&C Committee published a 9-page memo for this week’s hearing on crypto’s energy use. It’s not all bad, but commits basic errors, like repeating the fallacy of “per transaction” carbon emissions.Read it here & watch Thursday at 10:30 am ET: https://t.co/AgMes2zOwf— Jake Chervinsky (@jchervinsky) January 18, 2022The hearing is scheduled for 10:30 am EST on Jan. 20 and will be streamed here.

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Bitcoin miner Rhodium set for IPO, valued at $1.7 billion

The first IPO for the crypto industry in 2022 comes from a Texas-based Bitcoin (BTC) mining company, Rhodium Enterprises.In an SEC filing made last week, Rhodium plans to offer 7.69 million shares at $12-$14 each in an initial public offering (IPO). Trading under the ticker “RHDM” on Nasdaq, 56.8 million class A and 67.5 million class B shares will be released, ultimately valuing the company at just shy of $1.7 billion. Rhodium is a cryptocurrency technology company that uses proprietary tech and liquid cooling technology to self-mine Bitcoin. Their goal is to be the most sustainable and cost-efficient producer of Bitcoin in the industry.The company joins a growing list of US-based companies that mine Bitcoin. Over the past three years, Marathon, Bitdeer Technologies, Riot Blockchain, and Bit Digital listed on stock exchanges such as NASDAQ.According to the filing, Rhodium currently runs 125 megawatts (MW) of mining power capacity at its first Texas site. 33,600 Bitcoin miners are running, churning out a total combined hash rate capacity of approximately 2.7 EH/s.Following the IPO and a raise of $100 million capital, it will run a second site in Texas where they “expect to develop 225 MW of additional capacity.” By the end of 2022, the company will effectively more than double its current capacity. Bearing in mind that the average cost per BTC in 2021 was about $47,000, their electricity cost basis is staggering: Our infrastructure platform allows us to mine Bitcoin at a significantly lower cost compared to the industry average. For the period from January 1. 2021, to September 30. 2021, our average electricity cost to produce one Bitcoin was approximately $2,507.Related: Mr. Wonderful plans to invest in mining company stocksTexas continues to carve out a reputation as a Bitcoin mining-friendly state. In quarter four of 2021, Senator Ted Cruz commented that Texas should use Bitcoin mining to capture wasted natural gas while the Electric Reliability Council of Texas (ERCOT) anticipated that Texan Bitcoin mining power demands could jump 5 times by 2023.Rhodium takes advantage of Texas’ “independent power market and abundance of low-cost renewable energy resources,” and pro-Bitcoin business environment. Given the company’s experience with liquid-cooling technology and efficiency; for tiny Bitcoin miners seeking to solve valid blocks, it just got a bit harder. 

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Bitcoin hash rate jumps to ATH as Jack Dorsey confirms Block's mining system

Bitcoin (BTC) hash rate has returned to all-time highs despite losing a key hash rate contributor. Meanwhile, amid lackluster price action, Block CEO Jack Dorsey confirmed the creation of an open Bitcoin mining system.The BTC space continues to surprise and bewilder critics and fanatics alike. Kazakhstan, the network’s second most important BTC mining country, experienced an internet blackout last week due to civil unrest. However, the hash rate faltered no more than 13.4% before regathering to reach all-time highs.As shown in the below data from Glassnode, with the price checking into the $42,000 range yesterday, the mean hash rate hit 215 million terahash per second.Bitcoin miners continue to show resilience and as Fidelity Digital Assets observed, the network is even “more widely distributed around the world.” Cointelegraph previously reported that Block would develop open-source Bitcoin mining systems in 2022 due to job postings on Linkedin. Yesterday, Jack Dorsey confirmed the hunch, retweeting comments made by Thomas Templeton, a general manager at Block. In the Twitter thread, Templeton addressed issues relating to the availability, reliability, performance, and products pertaining to BTC mining. In sum, Block’s goals for BTC mining are the following: “We want to make mining more distributed and efficient in every way, from buying, to set up, to maintenance, to mining. We’re interested because mining goes far beyond creating new bitcoin. We see it as a long-term need for a future that is fully decentralized and permissionless.”Related: Jack Dorsey announces Bitcoin Legal Defense FundBuilding a BTC mining system “out in the open” and alongside the community is no mean feat. Econoalchemist, an established home BTC miner and BTC magazine contributor, tweeted that developing products in open source would “build trust where no reputation exists currently and also might shift consumer expectations in that direction.”Ultimately, Block’s mining solutions may pave the way for more DIY miners to enter the space. It seems the sky’s the limit for the hash rate. Well, at least until the next 2016 blocks when the network difficulty resets.

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