There has been a steady decline in bitcoin mining revenue and transaction fees from the past few months to $11.67 million (USD). The continuous rise in energy costs is one of the reasons for the downfall of bitcoin mining. As per the data, most Bitcoin mining companies are in the United States.
In January 2022, the nation hosted nearly 38% of the world’s Bitcoin mining. From the past 24 hours, bitcoin was trading at more than 4% with $17,000 (USD). The other major cryptocurrency Ethereum rose by more than 8% to $1,272 (USD).
This year is marked as unlucky for bitcoin mining sectors. Bitcoin miners faced the worst bear markets in the past few months due to the sudden collapse of Terra, and the Celsius Network affected the bitcoin price.
The recent FTX bankruptcy deeply affected mining activities in the United States. Recently Mark Mobius, one of the popular authors of Invest for Good and a multi-billionaire investor, stated that crypto is not a better place to invest. Mobius predicted that the bitcoin prices could drop to zero as users lost faith in crypto during the FTX collapse.
The Best Public Bitcoin Mining Companies
- Marathon Digital Holdings
- Riot Blockchain
- Canaan
- Hut 8 Mining
- Cipher Mining
Several bitcoin mining companies are facing losses due to tremendous market conditions, but Riot bitcoin mining is facing huge profits during these weeks. Recently Riot CEO came up with an idea to fix its long-term fixed-rate power contract to generate power credits and reduce mining costs. The largest mining operation in North America is the US Whinstone. Whinstone is trying to expand its mining capacity by 700 megawatts (MW).
New York Governor Banned Bitcoin Mining Companies
The New York government has started working on net zero carbon emission and has decided to ban Bitcoin mining entities for the next two years until Proof-of-Work (PoW) based mining companies use 100% renewable energy. Kathy Hochul, the governor of New York, stated that permits would not be renewed unless the Bitcoin mining companies adopt a renewable energy system.
The CEO of an institutional-grade Bitcoin mining company stated that “the regulatory environment in New York will not halt their target carbon-based fuel Proof-of-Work mining but will also likely discourage new renewable-based miners from doing business with the state due to the possibility of more regulatory creep.”
Source: https://www.thecoinrepublic.com/2022/11/30/since-the-past-two-years-the-bitcoin-mining-industry-has-suffered-enormous-losses/