Bitcoin DAA Level Plummets By 2.35%

bitcoin daa

The mining difficulty level of Bitcoin has dropped dramatically in the last two weeks. It has fallen by 2.35 per cent and is now at 29.57 trillion. This means that people could easily mine bitcoin in the previous two weeks. The cause is that Bitcoin DAA (Difficulty Adjustment Algorithm) fell from 31.25 trillion to 29.85 trillion over two weeks.

If we calculate the reduction in Bitcoin DAA from July 17, 2021, this could be the largest ever recorded in history. At the time, the difficulty dropped by 2.35 per cent to 691,488 blocks which was a record high since May 11 last year when it began its steady decline until it reached 31 trillion on May 25 before falling by 5.39%.

Bitcoin mining difficulty is the amount of time it takes a miner to verify transactions on a block in the blockchain. These mining difficulty managements are associated with variations in mining hashrate and processing power level.

bitcoin daa level

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On May 2, 2022, the hashrate of Bitcoin was 275 EH/s when measured at a block height of 734,577. According to the opinions of the specialists, it reached an all-time high. Foundry USA was the most successful bitcoin mining pool in terms of global hashrate, with 51.10 EH/s, equivalent to 24.28 per cent of BTC’s total hashrate.

Foundry USA was also responsible for receiving 101 of the 416 blocks mined in the last three days. Antpool is now the second-largest pool after gaining 61 in only three days, and it has a total of 30.86 EH/s, which accounts for 14.66 per cent of the total amount.

Miners Are Leaving Mining Business

The difficulty of verifying a Bitcoin block has fallen over the last two weeks, thanks to a 2.35 per cent decrease. This means that miners can find blocks more quickly than in the previous two weeks, meaning that even though the DAA shift decreased by 2.35 per cent today, 2016 blocks can be found at a considerably slower pace.

Miners have been driven out of the mining business due to the decreased profits, increased operational expenses, and the impending Merge. Their leaving has caused a glut of GPUs to appear on the resale market. As a result of the unexpected increase in available supply, the price of particular machines, such as the GeForce RTX 3080 GPU, has dropped to a minimum of $523.

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As a point of reference, a brand new GeForce RTX 3080 graphics card costs around $1500. The fact that these machines are used does not change the fact that their prices are much lower than typical.

In desperation and in an attempt to recoup some of their losses, several miners have turned to Livestream auctions to sell their mining equipment. Others, meantime, have chosen to go about things sneakily. A user on Twitter pointed out that some dealers exploit the listed price as bait and ask for $600-$700 in their asking price.

Bitcoin Mining Shifting To Renewable Energy

bitcoin mining

Bitcoin has been a controversial subject since its inception in 2009, and the debate shows no signs of abating. Bitcoin mining is soaring in its popularity. Governments, nature lovers, and lawmen demand a ban or a curb on cryptocurrencies and mining processes.

Critics have been accusing Bitcoin mining of an inefficient, wasteful process that is a drain on the world’s resources and a detriment to the environment. Bitcoin mining uses more electricity than the entire nation of Switzerland, which consumes around 6.5 gigawatts of electricity per hour.

However, according to a recent study by the Blockchain Mining Council (BMC), this perception is utterly false. The cryptocurrency mining industry has shifted to a more environmentally friendly and sustainable energy source. Its usage for bitcoin mining and securing the world’s biggest cryptocurrency blockchain has increased by 59 per cent year on year.

What BMC Report On Bitcoin Mining Says

The BMC survey found that bitcoin mining has become less reliant on coal power and more reliant on renewable resources like solar energy over the past several years. And although bitcoin mining still consumes 7 gigawatts of electricity per hour, it is moving away from nonrenewable resources at an ever-increasing pace.

On Monday, the Bitcoin Mining Consortium (BMC) released a report detailing the findings of its recent survey of 44 Bitcoin mining businesses. The BMC claims that these companies represent half of all Bitcoin mining facilities in operation on the worldwide Bitcoin network.

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The survey results reveal how much energy Bitcoin miners use and where they source their power from. Michael Saylor, the BMC’s chairperson and CEO of Microstrategy, explained, “We believe that this will catalyze even more robust collaboration between corporate miners, private miners and national miners.”

Each company reported its hash rate, computing power output, and total energy consumption. They also noted the percentage of energy generated by renewable sources such as hydroelectric, solar, wind, nuclear, and geothermal energy generated by each company.

Miners Are Adopting Greener Solutions

bitcoin mining machine

According to a new study, the worldwide Bitcoin mining business is relying on greener energy sources. The survey reveals that the mix of green energy for Bitcoin mining activities has improved from 36.8 per cent in the first quarter of 2020 to 58.4 per cent in the 2021 first quarter.

This green energy mix represents a slight decrease of 0.1 per cent from the previous quarter but a substantial increase compared to the predicted number of 36.8 per cent for the first quarter of 2021.

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Another finding of the paper is that the energy efficiency of these mining activities has improved. The hash rate has climbed by 23 per cent in the past year, from 164.9 to 202.1, despite a 25 per cent decrease in power use during the same period. This is a 63 per cent increase in efficiency over the previous year and a 5,814 per cent increase over the last eight years.

BMC’s Bitcoin Mining Report Flawed?

BMC members provided information for the new report, compiled by BMC employees. According to the analysis, this data collection method may have been flawed. The members claimed to employ a 64.6 per cent mix of renewable energy sources. However, there is no way to independently verify this claim because the group has no independent oversight.

The worldwide numbers were derived from information gathered from BMC members throughout the world, except for China—which accounts for more than two-thirds of all mining activity on the Bitcoin network—and several former Soviet Republics.

The figures provided by Joules seem more plausible than those put forward by BMC. According to Joules’ analysis, cryptocurrency mining led to a 17 per cent rise in carbon emissions caused by activities carried out to maintain the Bitcoin network’s uptime during Q1 2021.

Unfavorable Governments For Bitcoin Mining

Governments and environmentalists have condemned Bitcoin mining throughout the globe for the amount of energy it consumes. The European Union has disputed whether or not to outlaw Bitcoin because of its astronomical energy usage, mainly sourced from fossil fuels.

Bitcoin mining has been criticized for being energy-intensive and having a huge carbon footprint, with many seeking to improve its energy efficiency. To reduce the environmental damage caused by Bitcoin mining, miners have committed to using cleaner and more sustainable energy sources.

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The most severe problem with Bitcoin is its consensus mechanism, which is a procedure required for confirming transactions and adding them to the blockchain. Bitcoin uses the proof-of-work consensus method, which necessitates the usage of high quantities of energy by miners to validate transactions.

In the last five years, the price of bitcoin has increased by more than 300%, making it one of the most expensive digital currencies in history. As a result, bitcoin mining businesses are looking for the most cost-effective energy sources to ensure profitable operations.

Wind and solar energy are now the cheapest forms of energy, and they will soon be able to compete with thermal energy in terms of cost. As a result, miners will need to contribute to developing renewable energy infrastructure, which will benefit everyone.

India Is One Step Closer To adopting Cryptocurrency

Linking cryptocurrency’s potential to facilitate hiding and enable terror funding whereas additionally being responsive to the certainty of cryptocurrencies in the long term, the govt of India is geared up to manage cryptocurrency. The matter was mentioned at the very best level on November thirteen and chances are high that that a Cryptocurrency Bill is going to be introduced in Parliament’s Winter Session.

A meeting chaired by Prime Minister Narendra Modi mentioned cryptocurrency and it emerged that the govt is seriously involved that anti-Indian measures manipulating youth with “over-promising” and “misleading advertisements”. This should be stopped, the meeting terminated. The review meeting followed months of elaborate consultation involving the Ministry of Finance, the Ministry of Home, and cryptocurrency consultants from India and abroad.

Meanwhile, a parliamentary panel for the primary time mentioned the fate of cryptocurrencies in India on Monday wherever the accord emerged that cryptocurrencies can’t be stopped so that they ought to be regulated. The commission on Finance, chaired by former government minister Jayant Sinha, had invited a good spectrum of crypto business stakeholders together with exchanges and business bodies. Before the meeting, Sinha told the media, “We have known as stakeholders from across the business together with operators of major exchanges, members of CII also as teachers from the Indian Institute of Management (IIM) Ahmedabad, Who have done a really thorough study on the crypto finance.”

While a accord looked as if it would have emerged that a restrictive framework ought to be provided for the graceful and bonafide functioning of the crypto business within the country, there was no agreement on Who the regulator ought to be.

There is a accord that unregulated cryptocurrency shouldn’t lean a free run to launder cash and fund terror. The govt is nervous and apprehensive of the “evolving technology.” Hence, the choice to stay a “close watch” and therefore they got to take some “proactive steps”!

The developments came as a poll within the uk, control simply before the twenty sixth international organisation global climate change Conference in Glasgow, Scotland, discovered that the group in the uk needed a ban on cryptocurrency.

Unlike the united kingdom, however, there are not any indications that Indians desire a “ban” on cryptocurrency. The Modi Government said it’s a “forward-looking progressive” approach and can not solely interact with stakeholders in India however additionally connect with international partners.

The run has systematically warned against cryptocurrencies, urging that they were a significant threat to India’s economy and to its economic system. The Indian financial organization isn’t convinced of the over-ambitious crypto-claims and its supposed value. The run is against permitting cryptocurrencies – regulated or unregulated – space within the country’s money corridors. An indoor panel report of the run on the topic are going to be in the month of December.

Be that because it might, the govt won’t take an all-or-nothing call. It’s probably that “strong restrictive steps” measures on the anvil. The words “progressive and forward-looking” indicated the government’s thinking on the topic. The actual fact that cryptocurrencies span geographical boundaries can not be neglected. The whole globe could be a neutral and best world practices can have a say.

Indications are that the govt needs to draw a digital currency policy which will stand to take a look at your time. The primary restrictive steps would address “over promising” and therefore the opacity that surrounds cryptocurrency advertising. The restrictive steps may be outright legal. The crypto future in India are going to be certain by a powerful legal framework.

Paytm Willing To Offer Cryptocurrency Trading, Waiting For The Clear Stand Of Govt.

paytm willing to start crypto trading

Cryptocurrencies are trending and profitable like never before. The prospect they offer is attracting several investors making cryptocurrencies the trillion-dollar industry. However, the other side of the coin is obscure and risky. Cryptocurrencies are volatile and hanging on the edge of the ban.

Paytm, India’s leading and trailblazer of online payments services seems to have recognised the profitability these e-currencies have shortly. Paytm is excited to offer cryptocurrency trading services on its financial services platform but the uncertainties clouding around the cryptocurrencies are prohibiting the company from venturing into this segment.

Madhur Deora, the CFO (Chief Financial Officer) of Paytm, said in an interview with Bloomberg that the unclear approach of the Indian regulatory system towards trading such virtual currencies is restraining Paytm from taking a positive step towards the crypto exchange services. If otherwise, Paytm can offer ease to its users in crypto trading, he further said.

Paytm is one of the earliest players in online money transfer and other financial services niche. The company has benefited tremendously during the demonstration phase and applied extensive strategies to penetrate deeper into the market. Paytm houses more than 300 million users and approximately 20 million merchants.

Crypto investors and enthusiasts raised scepticism about the future of cryptocurrencies in India after the Chinese government recently banned cryptocurrencies and all the services related to them within its realm. China ranked on top in cryptocurrency trading and mining before both activities were banned in September 2021 in the country.

When Nirmala Sitharaman, the Finance Minister of India, was asked if the central government would ban cryptocurrencies in India. She responded that India would not be shutting off all the possibilities when it comes to blockchain and cryptocurrencies. She also added that the people of Indian would be given ample time to experiment with digital currencies.

Cryptocurrencies we’re banned in India as per the directions of the Reserve Bank of India. However, the Supreme Court of India reinstated the ban on digital currencies in March 2020. Reserve Bank of India wanted to construct a legal framework to regulate and scrutinise cryptocurrency activities. However, bringing the digital currencies under regulations seems the time-consuming process for the Reserve Bank of India as the digital currencies don’t fall under assets, securities or currencies acknowledged by the RBI.

Madhur Deora said bitcoin and cryptocurrencies are still in a regulatory grey zone though not banned in India. If these digital currencies were ever a legal tender in the country, there was a chance of introducing new offerings by Paytm for crypto investors.

If Paytm starts offering crypto trading services, it will attract additional investors. The company has already applied for Initial Public Offering amounting to Rs 183 billion and is all set to list on the stock exchange around the second or third week of November. Paytm has received 10x of subscriptions first’s shares than the company has put for sale, tells Madhur Deora to Bloomberg in an interview. Additionally, the financial services platform has attracted more than 122 company investors who have purchased more than 38.3 million shares for Rs 2120 apiece.

Does Cryptocurrency Mining Pose A Dreadful Threat To The Environment? Its Adverse Effects And Solutions

Cryptocurrency Mining

Once an alien concept for most of us, cryptocurrencies and cryptocurrency mining have gained a lot of interest worldwide. No one could ever have imagined in the worst dream that a virtual currency would become as precious as gold and diamonds are. A few virtual currencies, specifically called cryptocurrencies, like Bitcoin and Ethereum, are valued much more than a real Dollar, let alone Indian Rupee.

Right from the origination of the first cryptocurrency in 2009 called bitcoin, people remained unenlightened to the concept of cryptocurrency and blockchain until recently. The uninitiated people were living with the deception that bitcoin is a cryptocurrency, and cryptocurrency is bitcoin.

The skyrocketing values of bitcoin and other cryptocurrencies made people aware of their existence. Over time, people have traded and invested in these virtual currencies so heavily that cryptocurrencies have become a $2.2 trillion industry as of April 2021. There are no less than 10 thousand cryptocurrencies available for trading in the market at present.

These cryptocurrencies have not yet been widely recognized as a mode of payment. However, on the internet, some websites accept cryptocurrencies as a payment option. Moreover, cryptocurrencies have been considered as trading commodities with only upward demand since the last few years. Thus, the prolific demand for cryptocurrencies has created profitable opportunities in the mining sector.

What is cryptocurrency mining?

Cryptocurrency mining is the procedure of bringing cryptically locked coins into a transaction. The mining process involves unravelling complicated proof of work algorithms with the help of computers – CPUs (Central Process Unit), GPU’s (Graphics Process Unit) and ASIC (Application Specific Integrated Circuit).

The unorganized pools of cryptocurrencies can only be excavated by combining the computing power of several computers. Such incorporated computers relentlessly work together to solve complex algorithms and create new coins.

A miner has to lend his computing power for the cryptocurrency mining process. As compensation, the miner receives a part of the mined cryptocurrencies, which he later can trade or convert into real money.

Why has mining energy consumption become a matter of concern?

The increasing prices of cryptocurrencies are giving more monetary benefits to the miners for the excavating coins. Thus, tides of more and more people are joining the cryptocurrency mining network. The mining process consumes enormous electricity yielded from coal and other fossil fuels. As cryptocurrency prices go up, the complexity of algorithms increases which ultimately require more computing power to break them down. With the additional computing power, more electricity is also consumed.

Another concern related to cryptocurrency mining profitability and the complexity of algorithms as prices surge is that the mining infrastructure will require more computing power and electricity. Still, the number of transactions will remain the same.

BBC published the energy consumption statistics of Bitcoin in 2021 to put the actual energy consumption required in cryptocurrency mining before people. According to the BBC’s report, bitcoin eats up 121 Terawatt-hours of electricity every year, which is more than the energy requirements of the whole of Argentina throughout the year. One more research conducted by Digiconomist shows Ethereum engulfs as much electricity as Qatar.

What’s followed by the enormous electricity consumption?

Most of the electricity generated throughout the world comes from burning coal and other fossil fuels. The governments of most countries have been advocating and experimenting the renewable energy sources, but electricity production through such sources has been insignificant. Hence, we have no option left other than burning coal for energy production.

It is needless to mention that fossil fuels are the limited source of energy or producing energy. The extreme energy consumption by mining plants is putting the limited stock of none renewable sources at stake. Other than that, mining processes also increase carbon dioxide emission caused due to the excessive burning of coal. Cryptocurrencies and their mining are unnecessary concepts for most environmentalists.

A CNBC report states the mining process of Bitcoin alone emanates more than 35.95 million tons of carbon dioxide every year, which is equal to the emission level of New Zealand.

Cryptocurrency mining also produces electronic waste at a massive level. The components used in mining machines run 24X7 hours leading to expedited ageing. The worn-off parts become trash as they can’t be used elsewhere. The bitcoin mining infrastructure alone produces more than 12,000 tons of e-waste annually.

Can the mining be turned into green infrastructure?

The existing mining infrastructure undoubtedly feeds on tremendous electricity. Along with that, the mining process is vehemently burning out fossil fuels and causing excessive carbon dioxide emissions. The alternative solution to mitigate the adverse environmental impact could be the application of renewable energy, which seems far from reality and expensive to install.

Given the sumptuousness of renewable solutions, ordinary miners excavating coins with the help of a limited number of rigs installed in the home can’t shift to renewable sources so quickly. Availability of copious space is also the requirement for installing renewable energy plants. However, a holistic approach towards reducing the threats posed to the environment can let the mining plants thrive on any nation’s soil. If otherwise, cryptocurrency mining seems to have a cloudy future.

What cryptocurrency mining proponents have to defend?

In an interview with forks.news, Stefan Rust, the founder of Sonic Capital, says we have compounded suspicion and scepticism around bitcoins and the energy it is eating up. At the same time, we have more significant problems to fight with.

Alex Tapscott, MD of Ninepoint, says a few of the fears huddling around Bitcoin’s carbon footprint are misleading.