The Technological District of Mar del Plata, Argentina, will host a massive crypto mining operation backed by a domestic startup accelerator. Lothal Mining is the company that will run the operations of the mining firm in the Argentinean city.
Firm Will Mine Ethereum During the First Stage
Per local newspaper La Capital, Grupo Neutrón invested almost 45 million pesos ($310,000), and there are plans to allocate additional funding of 200 million pesos ($2.21 million).
The infrastructure is ready, and in a first stance, the firm will mine ethereum (ETH). However, the company plans to expand to other cryptocurrencies.
The funding provided by the startup accelerator seeks to acquire hardware, refrigeration equipment, building the mining farm, hiring staff to perform electrical maintenance, among other activities.
Also, officials of the Ministry of Industry of the Nation were in the mining farm to check the project’s launching. Maximiliano Gonzáles Kunz, Grupo Neutrón’s CEO, pointed out that crypto mining is urgently needed in the context that fiat is “tending to lose ground progressively.”
With this equipment, for example, we can make our processing power available to companies that enter the world of cryptocurrencies and need to transact those operations.
Growing Interest in the Crypto Mining Project, Claims CEO
On the decision of picking Mar del Plata as a hub for the mining rig, Gonzáles Kunz praised its strategic location for the technological ecosystem of the city.
Moreover, he believes the synergy created among the startups within the area is the proper environment to set up a project like this one.
Still, the startup accelerator claimed that there is “a lot of interest” in the crypto mining project. On the energy supply costs, Grupo Neutrón’s CEO commented:
We will make investments in infrastructure to guarantee a stable and cheaper supply. (…) We have strategic alliances with Grupo Núcleo and Neutrón. This gives us access to hardware availability at the best market costs, capital investments for the project, and a technological ecosystem that allows us to achieve synergy with different projects in the sector.
The Weekly Crypto Recap: New Bitcoin ATH of $67K As ETFs Live
To say that last week was exciting would be a serious understatement. Bitcoin went on to chart a brand new all-time high at around $67K, we saw the approval of the first-ever futures BTC ETF in the US, a massive flash-crash on BinanceUS, and a correction towards $60K. Let’s dive in.
Starting with Bitcoin. The price was trading around $62K last this time last week and even dipped below $60K briefly on Monday. However, the market was propelled higher from then, and this culminated in a new all-time high around $67K on Wednesday. It was a major event for the community – it took BTC exactly 6 months and 6 days to paint a fresh peak.
This came on the wings of some tremendous news. The SEC approved the first-ever futures-backed Bitcoin ETF ticked BITO. On its opening day on Tuesday, the product did over $1 billion in trading volume, making it one of the most successful ETF launches in history. Meanwhile, we also saw a flash-crash on BinanceUS, which took the price for BTC down to around $8.2K in a second before recovering. It also happened on other exchanges but not with such gravity.
Since peaking, though, Bitcoin’s price has been wobbly and, perhaps somewhat expectedly, tumbled towards $60K once again. This might be considered a healthy correction, given that there were no real shakeouts in the past few weeks.
Altcoins also followed suit to a certain extent. Solana and Ethereum literally came a couple of dollars away from marking new all-time highs but failed to do so.
Mclouds Cloud Mining Giant to Stop Operations in Mainland China by Dec 31
Mclouds have announced they will be withdrawing from China by the end of December this year
Chinese blockchain news outlet 8BTCnews has tweeted that one of the biggest miner hosting company in China, Mclouds, will be shutting down their services for customers in mainland China and will withdraw from the region by December 31.
Another large miner leaving China
Source cited by 8BTCnews says that today, on October 18, Mars Cloud Mine, that is part of Mclouds giant, announced that it will be withdrawing mining assets and services from mainland China before end of December, following the recent ban on crypto mining activities and crypto transactions in the country.
The platform provides solutions for Bitcoin and ETH mining, as well as for Filecoin.
Miners hosting platform Mclouds will close all mining service in Mainland China by December 31. As one of the biggest miner hosting platform, Mclouds offers #Bitcoin , #Ethereum and #Filecoin miners hosting service.https://t.co/biEGHBkDx2— 8BTCnews (@btcinchina) October 18, 2021
China is cracking down on crypto mining again
As reported by U.Today previously, China had imposed a new ban on cryptocurrency mining and trading, announcing all crypto transactions in the country illegal.
Multiple crypto exchanges are withdrawing, relocating from China or are shutting down their business completely.
The same is happening with mining pools. Bitmain miner creating giant has announced that it will stop providing mining machines to its customers in mainland China. One of its major mining pools, BTC.com, has followed the suit and another mining giant Antpool has suspended access to its services from Chinese IP addresses.
The US surpasses China by Bitcoin hashrate
The US has now officially become the top destination for miners leaving China, according to CNBC. As per the article, the leadership of the US for miners has drastically increased by 428% since September last year.
A fintech expert from the London, Boaz Sobrano, cited by CNBC, said that the times when China controlled the lion share of Bitcoin hashrate are behind. The US has now taken its place.
Some miners are also fleeing from China to Kazakhstan, however, experts believe that this is just a temporary stopover for them.
Energy provided by this country is coal-based and next year the local government plans to impose taxes on crypto mining companies.
Crypto mining ban expands to Hebei Province
China has taken over 90 percent of crypto mining farms since 2020.
• The China government advances with developing the Yuancoin.
While decentralized currencies are accepted in various countries of the world, it seems China’s regulatory policies will continue to remain in place and eve was stronger, especially with crypto mining. The national authority clarified that its stance towards crypto-mining has not changed, so it is still prohibited.
Since Tuesday, as reported by local media, a technology agency in Hebei, a province in China, has been working with regulators to expose offenders. The agency will search everywhere for possible crypto mining farms that operate in the country’s interior.
Regulations against crypto mining return to Chinese provinces
Since last year, long before the Bitcoin price hit its all-time high, the Chinese government has sought to ban the crypto market. The authorities regulated decentralized trading platforms, and then they were destroying every farm dedicated to crypto mining. The bans began with Beijing, the capital city, and then spread to remote provinces of China, such as Hebei.
The security and technology agency within the province in China must inform regulators at the end of the month that no crypto-mining farms operate. These agents have a great job to solve because they have to look at which areas consume the most energy because a BTC farm may be located there.
According to regulators in China, crypto mining is dangerous because it consumes a lot of energy. The authority also supports their actions by saying that the cryptocurrencies mining affects the “0 Carbon” plan they want to complete in 2021.
Crypto miners seek a new country to work in
Crypto mining in China has had tough weeks as regulators have tried to shut down farms without concrete vision. Due to these regulatory operations, the Bitcoin price dropped in May, losing over 50 percent of its capital.
The companies dedicated to this cryptocurrency mining work in China have had to close their doors and sell the machines to avoid losing a lot of money on the investment. However, other crypto-mining companies moved their operations to other countries in Asia.
The most famous crypto mining companies in China such as Houbi, HashCow, and BTC.TOP was the first to disappear after the announcement by regulators in May. Other exchanges offering various crypto services within the country also had to cease operations because of the crackdowns.
There are practically no crypto-mining farms in China, allowing the popular government to experiment with the virtual market. Everything indicates that the regulators achieved their mission of running to the competition to tackle the crypto ecosystem under their own rules. In June, the China government announced that it would launch the YuanCoin, a stablecoin backed by blockchain technology.