The minor bull rally triggered a surge in the price of the largest crypto asset, Bitcoin, and has positively impacted the broader crypto market ecosystem. As a result, Bitcoin mining is beginning to see a recovery after a year-long struggle.
A Positive Start
In the first few days of January 2023, the Bitcoin mining ecosystem witnessed a 50% rise in revenue via mining rewards and trading fees. In contrast, towards the last few days of December 2022 and for the first time since October 2020, revenue from Bitcoin mining slumped to $13.6 million.
However, the below-par performance was partly fueled by the rising energy prices and the Russian-Ukraine crisis, which forced some mining firms to shut down operations. Now, Bitcoin is well-placed for a slow and steady revival, with the mining industry already recording a 50% revenue growth.
According to reports, the revenue from Bitcoin mining jumped from $15.3 million last month to almost $23 million on January 1. More miners continue to contribute to powering and securing the Bitcoin network, and the asset’s hashrate keeps growing, attaining its all-time during the same period.
Meanwhile, on January 30, Bitcoin hashrate stood at roughly 300 exahashes per second (eH/s), an impressive development.
Also read:However, critics of the network believe its high energy consumption is its most significant negative. Last October, Bitcoin mining recorded a 41% increase in energy consumption, setting a new annual rise.
Nonetheless, some Bitcoin miners plan to adopt green energy sources to power to solve the issue of intensive power consumption. For instance, a mining firm, Gridless, has begun tapping into the surplus energy in the landlocked southeastern African country Malawi.
Commenting on the impact of the new development, Gridless CEO Erik Hersman stated that the power manufacturer had already built the facilities a couple of years ago. However, the project team abandoned the project due to a lack of funds.
Challenges Facing Green Bitcoin Mining
According to a Reuters September 2022 report, the green mining initiative adopted by several Bitcoin mining firms has recorded slim gains in its adoption. The report explained that processing Bitcoin transactions are done by powerful computers connected to a global network and consumes tons of megawatts of electricity.
As a result, the shift to cleaner and more sustainable energy for mining BTC has been the current trend in the industry in recent months. For some time now, several mining projects have sought ways to move to cleaner energy and away from relying on fossil fuel-produced power.
Nevertheless, some miners complain that there isn’t enough clean energy to power Bitcoin mining operations.
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