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Bitcoin Mining Updates – A New York Moratorium, Bond Delays in El Salvador, and an Invitation to Kenya

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As market cycles wax and wane, traders come and go.  Regardless of the state of the market though, Bitcoin miners remain a relatively fixed constant.  Sure a few small outfits may go offline during the coldest days of crypto-winter when BTC prices can’t support operations, but those that remain play an important role in securing the network, ensuring continued trust in its reliability.  With that in mind, the following are a few updates from this past week pertaining to BTC mining from around the world.

United States

Currently, it is believed that the United States accounts for roughly 38% of Bitcoins Hashrate on a month-to-month basis.  As such, any new regulations within the nations borders affecting Bitcoin mining have the ability to influence the network more than most.  For this reason, many have been watching to see the outcome of a proposed moratorium on Bitcoin mining within the state of New York.

The process, which first saw the Bills introduction in 2021, has now resulted in the Bill being passed by the New York State Senate.

 

This moratorium will bring a multi-year period in which increased restrictions are being placed on both new and renewing applications for mining licences within New York.  Only operations which rely entirely on renewable power are to be granted permission.

This move stems from a growing concern surrounding the environmental impact of the Bitcoin network.  While it is commendable to take steps in an effort to protect the environment, many believe that this moratorium will simply result in mining operations migrating from New York to regions free of such oversight.

El Salvador

For months now, Bitcoin enthusiasts have been anxiously awaiting the launch of El Salvador’s Bitcoin bonds – a product earmarked to facilitate the building of volcanic-powered Bitcoin City.  Unfortunately, it would appear as though the wait will continue for the foreseeable future.  Citing world events (i.e. Russia invading Ukraine), which have resulted in a severely depressed market, El Salvador’s Finance Minister Alejandro Zelaya recently indicated that the delays holding back the bond would continue.  Despite this, he has also shown a continued belief in Bitcoin, stating that it has helped change the legacy of the country from one of violence, to one of crypto and beaches.

Notably, this is not the first instance of crypto-winter wreaking havoc on operations.  Only yesterday we reported on Gemini, and its decision to lay off 10% of its workforce due to the same turbulent market.

Kenya

In a promising bit of news, CoinTelegraph reports that energy companies in Kenya have begun trying to entice mining operations to set up shop within the African nation.  Energy provider, KenGen, boasts that it can not only offer stability and space for operations, it can do so while generating 86% of its power through geo-thermal means (similar to how El Salvador intends to tap in to volcanic activity).

As it stands, Kenya does not boast a measurable presence within the world of Bitcoin mining.  When looking at the following chart, it is clear to see that the sector (which was once dominated by China) is becoming increasingly diversified though.

Source: Cambridge Bitcoin Electricity Consumption Index

Although it may not seem huge, it is important to potentially see new mining operations being set up in nations like Kenya, as it ensures that the network remains as decentralized as possible.

Current Metrics

While the Bitcoin mining industry is not immune to world events, it continues to operate seamlessly, boasting the worlds most robust and stable network.  This is highlighted by the following charts, which show total hash-rate, and network difficulty.

Joshua Stoner is a multi-faceted working professional. He has a great interest in the revolutionary 'blockchain' technology. In addition to this, he is a licenced Paramedic in Nova Scotia, Canada. As such, he can provide emergency care/medicine to any situation necessitating it.

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