In November, bitcoin miners around the world generated total revenue of $1.68 billion. Despite price corrections and dips caused by negative news, BTC managed to maintain a positive trend last month. Bitcoin mining activities increased this year. Many mining firms invested funds to increase their mining power to several Exahashes.
According to Dylan LeClair, bitcoin miners earned a collective 27,760 bitcoins in mining revenue for November alone. LeClair is an analyst who tweets regular market events and news. November, therefore, ended on a positive note for bitcoin miners despite the uncertainty facing the future of crypto mining policies in different countries.
Another important development with bitcoin mining firms is that many of them now purchase and store bitcoins. According to one of the top bitcoin miners, Bitfarms, it has mined above 3,000 BTC this year while increasing its mining power by a wide margin.
No Mining in China, No problem
After China banned cryptocurrencies in September, the government went on to begin a crackdown on bitcoin miners. Later, in November, the Chinese government announced that state-owned enterprises must discontinue bitcoin mining or face stiff punishments. These caused some panic in the mining communities around the world.
But the crypto mining industry seems to have shaken off the early effects of China’s policies and has continued to make profits. China’s ban forced miners to seek better crypto mining policies in the US and Canada among other places. But one of the biggest factors behind the increase in bitcoin mining revenue is the use of modern mining equipment.
In the last year, bitcoin mining firms in the US either entered partnerships or received funding to invest in better mining equipment that is more efficient and thus increases the profit margin. As of November, it costs over $11,000 to mine 1 BTC. This leaves a healthy profit margin for bitcoin miners. But it has come at some price.
Countries with friendly bitcoin mining policies may have to reconsider their stance on bitcoin mining due to certain emerging factors.
Green Energy is the Way
Over the years, and as the difficulty of bitcoin mining increased, critics have called for alternative energy sources to power bitcoin mining. Recent reports from Kazakhstan indicate an energy problem that has been amplified by the increased load from bitcoin miners. Some mining firms moved to the Asian country after China’s rejection.
In the US, some politicians have criticized bitcoin mining for being harmful to the environment and called for stronger regulations against it. But some have also asked that bitcoin mining firms consider solar and wind power to generate mining energy. In South America, El Salvador announced that it would harness an active volcano to mine bitcoin.
Several discussions about the merits of green energy for mining have been held in different circles this year. The profitability of green energy might not be enough for bitcoin miners to consider ditching non-renewable energy.
BTC continues to range around $56,634.78 as it seeks a break above the $59,000 resistance.