Miners appear to be shrinking amid growing cryptocurrency market
The number of bitcoins held by all cryptocurrency miners worldwide has fallen to its lowest level since 2010, totaling 1.95 million bitcoins, according to news site Finbold.
“The role of crypto miners is shrinking, and the amount of BTC they hold has reached a 10-year low. At the same time, Bitcoin’s hash rate (a measure of the ability of cryptocurrency miners to solve algorithms) is at an all-time high.
These issues impacted miners’ profitability, causing them to have to sell some of their bitcoin to cover operational costs,” crypto market research platform IntoTheBlock shared in a post. . . on Facebook. Twitter March 11.
According to Finbold, the main reasons Bitcoin miners are struggling include a mining crackdown in China, a global semiconductor shortage, an increasingly competitive environment, and concerns about climate change. Queen. These difficulties have forced companies and miners to sell some assets just to ensure the stability of mining operations.
In Malaysia, however, miners are still active.
Bitcoin mining activity in Malaysia has not faltered despite the record low amount of Bitcoin held by miners. In fact, the country is facing a growing problem of bitcoin mining electricity theft.
As Finbold reports, a Malaysian services company was forced to find new ways to solve its problems. In 2021, the company recorded 7,209 cases of unauthorized electrical connections, a nearly 12-fold increase from 610 in 2018.
Between 2018 and 2021, the total illegal electricity use by miners in the country was $550 million.
On March 11, the price of Bitcoin surged to the $40,000 mark. Currently, Bitcoin price is stable at $39,000.
Last week, Bitcoin’s total market capitalization hit $743 billion, according to CoinMarketCap.
The U.S. just pushed the price of Bitcoin higher
Bitcoin (BTC) has experienced strong growth following President Biden’s announcement of cryptocurrency-related legal documents on the evening of March 9, Vietnam time. As a result, the cryptocurrency industry has gained recognition and a clear regulatory framework over the years.
The order requires federal and government agencies to focus on researching and proposing cryptocurrency-specific legislation as soon as possible. Additionally, President Biden highlighted the risks cryptocurrencies could pose to the macroeconomy, national security, and climate. However, according to published records, the benefits of cryptocurrencies are no less.
Additionally, the order requires government agencies to assess the potential of the digital dollar as soon as possible. The Department of Justice will be responsible for issuing regulations related to this new coin.
Central bank digital currencies or CBDCs have been researched and tested in many countries around the world, including China, Sweden, and more. CBDCs are tools that governments use to keep up with changes in the cryptocurrency market.
Opportunity is widely used
In the period following the U.S. government announcement, Bitcoin rose 10 percent to hit the $42,500 mark, according to TradingView. As of noon on March 10, the BTC price had fallen to the $40,800 price range.
For the first time in years of warnings, the U.S. government has taken a more neutral stance on cryptocurrencies. The crypto community sees this as an opportunity for Bitcoin and other platforms to become more widely used.
“We are delighted that the government finally recognizes that this is America’s opportunity to lead innovation and creativity again. I hope Coinbase has the opportunity to work with lawmakers.” Faryar Shirzad, director of public policy at Coinbase Exchange, shared on Twitter.
No specific action yet
However, individuals and institutions skeptical of the potential of cryptocurrencies see the task as a step backwards. Lee Reiners, director of Duke University’s Center for International Finance, sees no government action until November’s midterm elections.
By law, government agencies have 180 days to make a request. “This order completely contradicts rumors that they will deny all crypto-related requests. The government has made it clear that it supports cryptocurrencies,” Reiners said. .
Government agencies have been studying cryptocurrencies since their inception. The U.S. Treasury Department’s crime watchdog issued guidance on cryptocurrency payments in 2014. The Commodity Futures Trading Commission (CFTC) established the Currency Research Program. 2017 data.