In the months following the bitcoin halving on May 11, 2020, miners’ revenue per mined block plummeted to $6.8 million. Today, just over a year later, revenue is hovering above $40 million, according to data from blockchain analyst Glassnode.
Bitcoin mining is a highly competitive process of creating new cryptocurrencies by solving complex mathematical puzzles with the help of computers with specialized software installed.
By checking bitcoin transactions and adding them to the blockchain, miners earn rewards that consist of transaction fees and a base reward for each block mined.
The block reward, also known as the cash-based reward or subsidy, drops by half every 210,000 blocks mined, or approximately every four years — hence the term “halving”.
Bitcoin is designed so that the rate of creation of new bitcoin is reduced with each halving, until no more coins enter the network supply, something predicted to happen in the year 2140.
Although the reward has dropped, miners’ revenue per block mined has increased by approximately 488% since the last halving. Current values are, however, still lower than the peak of $60 million bitcoin miners enjoyed in May this year, just before China’s massive crackdown on the cryptocurrency mining sector.
The number is also 185% higher than the values recorded in the period before the halving of 2020, when miners received around US$14 million a day.
Bitcoin network recovery
Although miners have to work twice as hard to enjoy the same rewards they got before halving, the increase in revenue described above suggests that there is a silver lining for this community.
To keep up with the financial pace, mining companies need to invest in more machines as the block’s payoff diminishes. Doing this, however, means spending more money. It also means that the industry believes the long-term future of the business is viable.
Following this thinking, rising revenue suggests that mining companies are investing in expansion and remain confident in the market. The conclusion is also surprising, given the aggressive crackdown on the mining industry that broke out of China this year.
In mid-June, after several Chinese provinces expelled bitcoin miners, the country’s central bank ordered banks and payment platforms to sever any relationship with cryptocurrency service providers.
All of this, in turn, resulted in the mass exodus of miners out of China, with many of them relocating their operations to North America or Kazakhstan. It also led to the collapse of bitcoin’s hash rate—the total computing power of the network—and the difficulty of mining.
Mining difficulty — a measure designed to calculate how much computing power it takes to produce new bitcoins — peaked at over 25 trillion in mid-May.
Mining difficulty is measured using a relative unit that was at “1” when the Bitcoin genesis block was mined on January 3, 2009.
Right after the Chinese crackdown, this difficulty collapsed 54%, making it almost twice as easy to find new blocks and earn the reward.
The difficulty has steadily rebounded since then, with five consecutive increases taking the difficulty to nearly 19 trillion. The next difficulty adjustment, which is scheduled to take place on Monday night (4), should result in another increase of about 3%, according to BTC.com.
Glassnode co-founders Jan Happel and Yann Allemann, they said that the current bitcoin difficulty graph “will soon signal a positive rebound as more miners come back online.”
“The last comparable event was after the bear market capitulation in December 2018, which took 164 days to turn positive. The current recovery of mining took 120 days”, they wrote.
#Bitcoin difficulty ribbon is soon to signal a positive recovery as more miners come back online.
The last comparable event was following bear market capitulation in Dec 2018, which took 164-days to flip positive.
The current mining recovery has taken 120-days. pic.twitter.com/l2Nmc9RYTR— Jan & Yann (@Negentropic_) October 4, 2021
With the market-leading cryptocurrency price currently rebounding to $50,000, and the network’s hash rate returning to values last seen in June, miners now actually seem more confident and more willing to power on more machines. to get your rewards.
CoinMarketCap hack leaves 3.1 million email addresses compromised
- A recent hack on the crypto tracking service, CoinMarketCap, leaves 3.1 million users’ email addresses exposed.
- CoinMarketCap announced that the breach did not come from its servers. It continues to encourage users to employ reasonable cybersecurity measures.
A report from Have I Been Pwned on October 23 revealed a CoinMarketCap hack that happened earlier in the month. According to the website, 3.1 million addresses of CoinMarketCap users were on trade-in wanting hacking platforms. The website dates the hack back to October 12, with involved parties and the hacking method used still unknown.
CoinMarketCap is the leading crypto price tracker, recently purchased by Binance exchange for $400 million. Currently, it is displaying over 12,600 cryptocurrencies in the market and still growing. Additionally, it indicates their trading volumes, value rise or drop, significant graphs, a detailed history of the coins’ prices, to mention but a few. CoinGecko is its ultimate competitor, standing as an alternative for the platform.
So far, this is the first known hack on the crypto tracking platform, which begs the question of whether it is safe or not. However, CoinMarketCap has maintained a clean track record since its inception in 2013, ranking this as a glitch. Arguably, the platform is secure considering the absence of any trading activity or coin storage options.
CoinMarketCap addresses the issue
It is yet unknown the primary motive of the hackers and their need for the 3,117.548 email addresses. The platform, however reluctant to talk about the hack, expressed its awareness of the breach.
Furthermore, it assured its esteemed users that the hack did not originate from their servers. In its opinion, the hackers may have acquired the addresses from another platform and compared them to those of its users. Furthermore, it stated that this result could be due to users reusing passwords on different sites.
CoinMarketCap also expressed their regret and vigilance in the ongoing issue, explaining that investigations were already underway. Additionally, it ran a detailed security audit to ensure that all the information it provides would be truthful to maintain trust with its users.
The CoinMarketCap spokesman rounded up the report by urging users to exercise viable cybersecurity measures to avoid future breaches; that includes having a solid and unpredictable password for every platform they use.
It is not the only platform
Have I Been Pwned is a platform dedicated to tracking cybersecurity issues. It helps users to find out if hackers have compromised their data. The website allows you to input your email address or phone number using an international format to get more details. Furthermore, it has a password-generating feature to help you develop the best possible passwords for your accounts.
Since its launch in 2013, there have been over 500 websites, which suffered a breach. Additionally, over 11.5 billion users globally have their data pwned and pasted. This information stands as an indicator of the rising cybersecurity issue despite advances in technology.
Recently, Coinbase also suffered a hack leading to over 6,000 accounts falling victim.
The cyber-attackers breached its multi-factor authentication system to steal user assets. The platform is yet to release information on how much the lost assets total.
This incident is among the many that crypto users suffer in the current digital world. However, the big question is whether platforms can find better ways to protect user identities, personal data, and investments at large.
Bitcoin miner arrested for making energy ‘cat’ in London
A crypto-currency miner from Oaks Farm, a neighborhood in Greater London, England, was sentenced to 13 months in prison for stealing about $44,000 worth of electricity from clandestine connections, so-called ‘cats’ in the power grid, for bitcoin mining with about 200 machines.
According to the local newspaper, Leicester Mercury, 40-year-old Sanjay Singh’s sentence was not higher because he pleaded guilty before a judge on Tuesday (12) in a Leicester courthouse.
One of the miner’s chosen locations is at an industrial facility in Coalville, where the operations were discovered by police and he began filing a lawsuit. While he had not been tried, Singh set out on another illegal enterprise in Loughborough. The distance between the two cities is only 14 km.
Because of the miner’s audacity, CPS Chief Attorney Andrew Baxter, who called him “greedy,” said that to prosecute him it was necessary to carefully gather evidence of the work he did to calculate the value of the electricity he obtained. illegally, as well as proving that he was responsible for the ‘cats’.
Baxter also found Singh’s case to be quite unusual, since, he said, electricity theft in the region is often linked to activities such as marijuana cultivation, for example. “Bitcoin mining is a cool business. Sanjay Singh was simply acting out of greed”, said the prosecutor on account of the recurrence of the same crime.
He concluded by condemning Singh also for the fact that he had left wires exposed in his clandestine facilities, which put several people at risk of being electrocuted.Image: Reproduction
Bitcoin Miners Are Revolutionizing Energy Industry
Anthony Pompliano posted an interesting thread about Satoshi Nakamoto and the way in which he revolutionized finance.
He is also talking about the Bitcoin miners, and you can check out some of the most exciting things that he had to say below.
Satoshi Nakamoto revolutionized the financial industry by creating Bitcoin in 2008.
Now Bitcoin miners are in the process of revolutionizing another industry – energy.
Here is how they're doing it 👇 👇 👇— Pomp 🌪 (@APompliano) October 10, 2021
Here what more he had to say in the same thread:
An army of mining companies are creating a market for wasted gas to reduce flaring and cut emissions.
Here’s what that looks like.@upstreamdatainc (top L)@GigaEnergy_ (top R)@CrusoeEnergy (bottom L)@GAMdotAI (bottom R) pic.twitter.com/NizzG3YnZ6— Pomp 🌪 (@APompliano) October 10, 2021
He also said that “Bitcoin miners are always looking for super cheap energy. Before now, all this wasted gas had a price of $0. Now oil companies earn extra revenue. Miners have ridiculously cheap energy. The planet stays a little cleaner. Everyone wins.”
Someone responded with he following words: “Agree that using excess energy and reducing the amount of waste from natural gas is great. I’m not as convinced that helping oil companies more profitable helps the planet. This may help them expand and do more damage to the planet. I think we need to push towards renewables.”
We suggest that you check out the complete thread on Twitter.
Bitcoin could surge to $100k
There are all kinds of optimistic predictions about the price of Bitcoin these days after the king coin was able to surpass the important level of $55k.
At the moment of writing this article, BTC is trading in the green and the king coin is priced at $54,856.20.
Kraken said that Bitcoin could end the year with a massive surge that would more than double BTC’s value from its September closing price.
Stay tuned for more news about the great things happening in the crypto space.