China Back on Attack Mode, Internet Blocking Exchanges & Bitcoin Miners Ordered to Shut Down

China Back on Attack Mode, Internet Blocking Exchanges & Bitcoin Miners Ordered to Shut Down

This time, Bitcoin price is not responding to the reports of a crackdown from China which extends beyond the crypto sector, ahead of the 100th anniversary of the ruling Communist Party on July 1, trading around $36,500.

China has taken some strict measures against cryptocurrency exchanges and bitcoin mining yet again ahead of the politically sensitive 100th anniversary of the ruling Communist Party on July 1.

However, these measures aren’t restricted to the crypto sector alone but extends to banks, education, and the internet.

Major internet services in China, Baidu, Zhihu, and Sogo, are blocking the keywords associated with the top three crypto exchanges Binance, Huobi, and OKEx.

“According to the relevant laws, regulations, and policies, the search results have not been displayed,” reads the message on social media. Over the weekend, Weibo also blocked a large number of crypto Key Opinion Leaders (KOLs) in China.

Reportedly, the Payment and Clearing Association, a subsidiary of the Central Bank of China, has also stated that 13% of gambling websites support crypto and use the anonymity of blockchain technology to conceal fund transfers.

Additionally, the Reform and Development Commission in the Changji Hui Autonomous Prefecture in Xinjiang issued a notice on Wednesday ordering its subordinate government officials in the Zhundong Economic Technological Development Park to shut down all crypto mining activities.

Xinjiang province is one of the major economic and technological development zones in China, which is home to coal-based power plants and industrial factories, including some of the largest Bitcoin mining facilities due to fossil fuel energy.

This move was taken by the authorities based on the high-level bitcoin trading and mining crackdown brought up during the China State Council meeting last month.

This has resulted in the hash rate of the top mining pools plummeting by 20% to 25%, as per BTC.com. So far, Bitcoin’s hash rate per day is at 166.1 Th/s, up from last month’s 118.7 Th/s caused by China’s crackdown but still down from 171.4 Th/s ATH on May 13, according to Bitinfocharts.

According to the Chinese publication Wu Blockchain, there are three mining regions in China: Inner Mongolia, which relies heavily on coal-based mining and has already stopped mining cryptocurrency completely, Sichuan depends on hydropower which may not stop, and Xinjiang, where the situation is complicated but the term used in the document is “to suspend for rectification,” and not as strict as Inner Mongolia. It added,

“In addition to the uncertainties of government supervision, China is experiencing a new power shortage. The core reason is that China’s main power generation area and main power consumption area are separated in the west and east, which also has an impact on current Bitcoin mining.”

Bitcoin and other cryptocurrencies continue to face price pressure due to rising regulatory concerns from China. This time, however, BTC price is not affected, going to $36,700 despite the reports, after the drop to $31,000 on Tuesday.

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Author: AnTy

Iran Moves to Heavily Fine Crypto Miners Using Household Electricity

Iran Moves to Heavily Fine Crypto Miners Using Household Electricity

The Iranian government has introduced new rules that prohibit cryptocurrency miners from mining bitcoin at home. According to the local news agency The Tehran Times, home miners caught breaking the law would be fined heavily.

Iran Cracks Down On Illegal Crypto Miners

Although crypto mining is legal and accepted by the Iranian government, some crypto miners have reportedly been using household electricity to mine to bypass paying higher tariffs.

Besides the fines, erring miners would also be required to pay extra fees for damages caused to the power network.

Mostafa Rajabi, a spokesperson for Iran’s Energy Ministry, said that the need to monitor crypto mining was necessary as it was one of the two biggest threats to Iran’s electricity supply. The second threat Rajabi noted is a reduction in power coming from hydropower plants due to the lack of rainfall.

The government’s new measures would also see illegal crypto miners who are caught provide compensation for potential damages caused to the electricity network.

According to Rajabi, up to 87% of crypto mining operations in Iran are illegal, and these unauthorized crypto mining can damage the local power grid and lead to blackouts.

Crypto Mining In Iran

Since July 2019, crypto mining has been accepted as a legal industry in Iran. Miners in the country are required to obtain an operating license from the Ministry of Industries and pay their electricity bills based on export rates.

Now that mining is legal, miners have complained about the high power tariffs. This caused a brawl between the miners and the government and led to some miners leaving their farms to use household electricity instead.

Another issue between the Iranian authorities and the country’s crypto miners is the constant nationwide power outages. In January, the Iranian government had reportedly shut down 1,620 unregistered mining farms, blaming them for the widespread blackout, which left millions of people without power.

Iran is a notable player in the Bitcoin mining market. The country ranks among the top 10 countries where miners operate due to its cheap energy.

Despite the trouble with miners, Iran sees crypto mining as a way to generate income for the country. Last year, Iran started exploring the potential use of cryptocurrency as a tool for mitigating the crippling impact of economic issues faced at the time.

The Central Bank of Iran unveiled new rules that directed the proceeds of the mined Bitcoin to be used as government funds to finance the country’s imports. Using cryptocurrencies for foreign trade was one way the government could avoid the adverse effects of the economic sanctions imposed by the US.

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Author: Jimmy Aki

Iranian Banks Allowed to Use Bitcoin Generated by Sanctioned Miners to Pay for Imports

Iranian Banks Allowed to Use Bitcoin Generated by Sanctioned Miners to Pay for Imports

Iran’s central bank is now allowing its financial institutions, including banks, to use cryptocurrency, which is derived from the sanctioned miners, to pay for its imports, according to a report by the Financial Tribune.

The Central Bank of Iran (CBI) has already notified the banks and money changers of the amended regulatory framework for crypto payments. The local crypto mining industry, according to some, can generate as much as $2 million a day in revenue.

Iran, which is hit hard by the international sanctions, would now be able to pay for goods and services from other countries and circumvent the US economic sanctions.

It was back in October 2020 when the central bank first amended its regulations and allowed Bitcoin and other cryptos to be mined using subsidized energy. At the time, the bank stipulated that all miners’ coins had to be sold to the bank directly and only digital assets to be used for import funding.

Now, the central bank is extending the use of legal use of cryptos to other groups and institutions as well.

“It said lenders and money changers have been notified about the regulatory framework for crypto payment,” per the Tribune. “No further details were announced, the CBI website reported.”

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Author: AnTy

Unlike Nvidia, AMD Won’t Block Crypto Miners From Using its Graphics Cards

Unlike Nvidia, AMD Won’t Block Crypto Miners From Using its Graphics Cards

While one is free to do what they want with the RDNA 2, it is best fit for gamers as “there are going to be limitations from an architectural level for mining itself.”

Advanced Micro Devices, Inc. (AMD), the semiconductor company, has confirmed that it is not blocking mining operations on its graphics cards, reported PCGamer. This confirmation came after Nvidia’s limited Ether mining on its GPUs.

“The short answer is no,” said Nish Neelalojanan, a product manager at AMD, during a Radeon RX 6700 XT pre-briefing call. “We will not be blocking any workload, not just mining for that matter.” He added,

“However, mining specifically enjoys, or scales with, higher bandwidth and bus width, so there are going to be limitations from an architectural level for mining itself.”

As we reported last month, Nvidia said it is limiting the Ethereum hash rate by 50% with its latest RTX 2060 software drivers because they are designed for gamers, and Nvidia is “gamers, through and through.”

When it comes to AMD, their RDNA 2 isn’t the best crypto miners; they are primarily designed for gaming, which means their “Infinity Cache and a smaller bus width were carefully chosen to hit a very specific gaming hit rate.”

“All our optimization, as always, is going to be gaming first, and we’ve optimized everything for gaming. Clearly gamers are going to reap a ton of benefit from this, and it’s not going to be ideal for mining workload. That all said, in this market, it’s always a fun thing to watch.”

However, both Nvidia and AMD are struggling to meet the global demand as with the rising prices of cryptocurrencies, the need for mining hardware has been rising exponentially.

Chip shortages are also affecting the industries relying on semiconductors, which is expected to continue throughout this year and even into next year.

Christopher Rolland, a financial analyst at Susquehanna, warns that we risk heading into “danger zone” territory for lead times in terms of chip orders, where wait times are now exceeding 14 weeks, not seen since 2018.

Samsung, the world’s biggest computer-chip manufacturer, has also warned of a “serious imbalance in supply and demand of chips.”

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Author: AnTy

Nasdaq listed Canaan Creative Sees A Boost in Demand for Bitcoin Miners As Crypto Prices Rise

Nasdaq listed Canaan Creative Sees A Boost in Demand for Bitcoin Miners As Crypto Prices Rise

Bitcoin Mining firms are struggling to meet the increased demand for mining machines despite the rising prices of cryptocurrencies.

According to Canaan Creative, a Nasdaq listed firm, crypto mining orders have been rising despite Bitcoin’s hitting new highs in the recent past. Over the weekend, Bitcoin’s price surged to a new level, trading at $60,000. The king coin has been bullish over the last year, with its value increasing by about 110 percent since January this year.

Buoyed by the rising price, Bitcoin mining equipment manufacturers have witnessed their businesses hitting the peak with some grappling to meet the soaring demand.

As one of the largest mining equipment manufacturers, Canaan Creative claims that its orders have been increasing since 2020. The firm stated that North America and Central Asia are the largest sources of the current surge in demand.

According to Global Times, the firm’s presale mining hardware to the North American region were about 120,000 units which is a 17% surge from mid-Feb.

In the wake of the global shortage of mining chips, Canaan entered into agreements with various fabrication plants in advance, giving the company leeway to manufacture mining hardware as per the market demand.

To take advantage of the soaring Bitcoin prices, the firm intends to kick-off its own mining business later in the year rather than just providing mining machines.

The firm stated that Bitcoin’s price is likely to be bullish following the recent plans by the US government to inject about $1.9 trillion into the economy following the sluggish growth and collapse due to the Covid-19 pandemic.

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Author: Joseph Kibe

China’s Inner Mongolia Bans Crypto Mining while Bitcoin Miners Rake in Record-Breaking Revenue

China’s Inner Mongolia Bans Crypto Mining while Bitcoin Miners Rake in Record-Breaking Revenue

The cryptocurrency miners have broken the December 2017 revenue record of $1.25 billion by generating a whopping $1.36 billion in revenue in February.

Up 21% from January revenue, the latest numbers are in part due to the price of Bitcoin hitting a new peak at just above $58,300. The price ATH of the last bull cycle was hit in Dec. 2020.

Miner revenue based on terahash per second (Th/s) also kept up between $0.23 and $0.38 in the month. Besides profiting from selling their BTC at high prices, transaction fees were another driver of these high revenues. Miners raked in $186 million, 13.7% of total revenue from network fees. Up 10.3% from January, fee revenue also hit its highest level since Jan. 2018.

Amidst the growing revenue of miners, China’s Inner Mongolia has banned crypto mining, reported Bloomberg. The region accounts for 8% of the global Bitcoin mining hash rate.

The autonomous region is planning to shut down all crypto-related projects by April and further ban new digital coin projects, according to a draft plan posted on the Inner Mongolia Development and Reform Commission’s website on Feb. 25.

Inner Mongolia, which is known for its cheap energy supplies, aims to cut down emissions per unit of gross domestic product (GDP) by 3% this year and constrain the growth in energy consumption to 1.9% this year.

The proposal to curb cryptocurrency mining in the region was first introduced back in 2018, and the next year, authorities clamped down on the “illegal” Bitcoin mining business.

“It isn’t a real bull market unless China is ‘banning’ Bitcoin Bullish FUD,” commented Alistair Milne, CIO at Altana Digital Currency Fund.

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Author: AnTy

Hive Blockchain Purchases 6,400 Bitcoin Miners From Canaan; Aims to Hit 2021 Goal

Hive Blockchain Purchases 6,400 Bitcoin Miners From Canaan; Aims to Hit 2021 Goal

Hive Blockchain, the Vancouver listed crypto mining firm, has announced the purchase of 6,400 Avalon Miner 1246 machines from Canaan Creative. This new purchase is part of its 2021 goal to scale its mining capacity beyond 1,000 Petahash per second (PH/s).

The new mining machines will increase Hive Blockchain’s mining power by an aggregate of 576 PH/s, bringing the total to 1,229 PH/s once the machines are delivered and deployed. Hive said that newly acquired miners would be delivered in 8 tranches within the course of 2021.

“Based on the orders that have been placed, this new equipment is expected to be delivered in 8 tranches in 2021, with 500 miners delivered in May and June and 900 miners delivered each month in the remainder of calendar 2021 commencing with the July delivery.”

Hive anticipates that the 1,000 PH/s targets will be achieved sooner than expected with the order already in place. The firm is now eyeing a new goal of 2,000 PH/s by the end of the year, a milestone that could further spur its overall market value.

Meanwhile, Canaan Creative, which reported a Q3 net loss of $12.3 million, might find some reprieve following the new order. Earlier on, the firm’s CFO Quanfu Hong had expressed optimism in a market bounce back as the world gets back to its feet.

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Author: Edwin Munyui

What’s Happening on the Bitcoin Network Amidst The Red Hot Market?

Miners are reaping the fruits of rising BTC price and fees as blockchain activity continues to ramp up.

Bitcoin continues to smash new record highs, the latest one being $35k and nearly $36k. But this has just started and we have a long way to go.

This ATH came after the market had a 20% pullback on Monday providing a ‘buy the dip’ opportunity. “A large pullback of 20% – 30% should be expected, even in a bull market,” noted Arcane Research.

And this drop has been the result of sky-high funding rates and of course an overly confident market that led to $1.2b worth of longs getting liquidated in the BTC futures market — by far the largest daily liquidation since BTC started moving a few months ago.

After normalizing, these funding rates have started rising back up already.

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What’s just as interesting is the activity the largest crypto network has been seeing.

This price action has actually been on the back of the strong volume. Leading spot exchanges crushed all the previous records by having three days with over $10 billion in volume.

“$80+ billion in trading volume in the last 24 hrs on Binance. ATH x 2!” resulting in scaling issues, noted the CEO of leading spot exchange, Changpeng Zhao.

In terms of blockchain activity, Bitcoin active addresses grew by 9.3% week-over-week to start 2021, averaging over 1.1 million per day. These addresses are actually near all-time highs.

On January 3rd, the 7-day average reached 1.15 million, just shy of the all-time high of 1.18 million set in December 2017. The number of hourly active addresses (24h MA) actually just hit a new ATH.

Network security continues to look strong as well with the hash rate growing by 11.7%, again reaching for a new all-time high.

Bitcoin miners are currently enjoying revenue of $33 million per day, as per data source Glassnode. This has been thanks to the rising BTC prices and the average Bitcoin fees that have yet again surged to $11, moving up since Dec. 13.

Between the last halving and October, the average daily revenue was at around $10 million. It has only been within 5 weeks in late 2017 that this number has been higher.

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Author: AnTy

Bitcoin Miners Busy Accumulating BTC; Revenue from Fees Surges 2300% This Year

Bitcoin Miners Busy Accumulating BTC; Revenue from Fees Surges 2300% This Year

BTC miner outflow is nowhere near the previous tops, it is actually even below the 2019 local top.

2020 has been a good year for miners given that their revenue from fees increased from $0.1 million at the beginning of the year to $1.7 million as of Dec. 20th.

The daily miner revenue increased by 31% over the past week, as miners raked in more revenue through fees amidst the strong week for bitcoin price and activity levels.

The rising prices of the digital asset pushed the average fees on the bitcoin network to past $12, a jump of more than 4,185% from the average fee of a mere 2 cents in January 2020.

Miners are also not cashing out their BTC at these prices as seen in the amount of miner unspent supply, BTC that has never left the miner address, which has been increasing since the last halving and currently stands at 1.7 million BTC. Glassnode noted,

“Despite the recent rally, Bitcoin miners are not spending more BTC than usual. The Miner Outflow Multiple, which shows when BTC miner outflow is high with respect to its historical average, is far from previous tops and even below the 2019 local top.”

BTC Miner Outflow

Source: Glassnode

Bitcoin miners’ monthly revenue has been surging since September. In the month of November, they recorded $521.69 million in both subsidy and fees, last seen in September 2019. So far, this month $443.65 million have been raked in by them in revenue.

Ever since Bitcoin halving in May, which cut down the miners’ reward in half, fees have been accounting for 8% to 12% of miners’ total revenue, up from 1% at the beginning of this year.

Interestingly, while the price of Bitcoin is currently ranging from $22k and $24k, the stocks of publicly listed BTC mining companies have been up.

In the last 24 hours, Riot Blockchain shares are up 32%, Marathon Patent Group 21.5%, and Bit Digital’s 3.8%.

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Author: AnTy

Filecoin Miners Will Receive 25% Of The FIL Rewards Immediately After A Successful Network Upgrade

Filecoin (FIL) miners set to receive 25% of their rewards instantly for miners that successfully activated the FIP-004 protocol at block number #170,000. Given that Filecoin miners are working 24 hours to verify transactions on the network, over 40,000 FIL tokens will be released to miners daily without the vesting period.

According to a message posted on Filecoin’s Slack channel by lead developer Molly, Lotus 1.1.0 upgrade has been released for download. The upgrade is mandatory for all Filecoin users who want to continue participating in the decentralized file storage system.

The new upgrade brings in a slew of changes, including activation of FIP-004 at block 170,000 on Thursday. The upgrade feature will “improve miner’s ability to reinvest FIL by making 25% of storage-mining rewards immediately available with no vesting,” the statement from Molly reads.

According to previous proposals, the FIL miners had to wait for 180 days vesting their tokens but can now immediately withdraw and reinvest 25% of the rewards. The rest of the rewards will still be vested for 180 days before being released to the miners.

Following the launch of its mainnet last week, Filecoin became a quick sensation in the crypto market, with three large exchanges listing its FIL token way before the mainnet release. However, a fear of a “miner strike” due to the rising prices of FIL token and lack of profits before the 180-day vesting period elapsed led to the Filecoin community deciding to release 25% of the miner reward immediately.

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Author: Lujan Odera