It is yesterday once more in the bitcoin ecosystem. The recent spike in bitcoin transaction fees has surfaced memories of similar occurrences in the past. Those fee hikes were also instigated by spurious activity on bitcoin’s network and set off a debate in its community about the size of blocks on bitcoin’s network. The Importance… Read More The Future of Bitcoin and its Transaction Fees
The Federal Reserve will have many things to consider when it concludes deliberations at the latest Federal Open Markets Committee (FOMC) meeting. That list includes the latest round of bank failures, inflation and unemployment data, and the economy’s overall health. Suffice to say, bitcoin price will not be a part of that list. While the… Read More Notes 5/3: FOMC and Bitcoin Price, Bitcoin Mining Taxation
Between a debilitating crypto winter and rising energy costs, bitcoin miners were caught between a rock and a hard place for most of 2022. But Bitcoin’s hash rate – the amount of computing power devoted to mining the cryptocurrency – is near its peak rates. Back of the envelope math shows that the amount of… Read More Notes 01/03: Bitcoin Mining Consolidation
One of the constituencies affected by the slump in bitcoin prices is its mining community. A decline in bitcoin’s price makes the cryptocurrency less profitable to mine because revenues fall. Bitcoin mining is a capital-intensive business. It requires significant investments in real estate, mining rigs, electricity, and, in some instances, energy sources. The main source… Read More How Are Bitcoin Miners Handling The Crypto Winter?
Mining revenue from Bitcoin continued to fall, declining by 21.6% in May, even as Ethereum’s ether recovered from a mishap at the beginning of the month to become a more profitable proposition for miners. Revenue from bitcoin mining operations has been in a free fall since last October. The development is not surprising considering that… Read More Bitcoin Mining Revenue Fell By Double Digits In May As Ethereum’s Ether Became More Profitable
The difficulty level for bitcoin’s mining algorithm, which climbed over the last year, fell by 15% yesterday, recording its second-steepest drop ever. Difficulty level refers to the difficulty of the cryptographic problems required to be solved by systems within bitcoin’s network to earn the cryptocurrency. It is adjusted every 2016 blocks or approximately after every… Read More Bitcoin Mining Difficulty Level Records Second-Steepest Drop. Will Industry Consolidate?
Despite the precipitous decline in it’s price, bitcoin’s hashrate (or the amount of computing power deployed to its network) has skyrocketed. Approximately a year ago, bitcoin had 6.018 exahash of computing power dedicated to its network. As of yesterday, bitcoin’s hashrate was equal to 38.42 exahashes. (1 hash in bitcoin is equal to one round… Read More Bitcoin’s Hashrate Has Skyrocketed In The Last Year. Why?