- The hash rate or the speed of mining one bitcoin reached an all-time high of 147.88 EH/s on 13th July 2020.
- American billion-dollar fund manager Fidelity International doubled its stake in bitcoin mining firm Hut 8 yesterday.
After a drop to $3,600 in February this year, Bitcoin is only gaining pace to reach newer heights. The hashrate or the speed of mining one bitcoin reached an all-time high of 147.88 EH/s on 13th July 2020. The use of the latest ASIC machines combined with a huge investment in mining firms has kicked in positive growth.
The major role played by Chinese firms in Bitcoin Mining
Chinese firm Bitmain agreed with Core Scientific to purchase 17,000 mining machines with the latest technology. Additionally, in 2019, Bitmain announced that operations would soon begin in Rockdale, Texas, with 25MW. Another mining firm Layer1 raised approximately $50 million from various investors to expand operations in different cities.
American billion-dollar fund manager Fidelity International doubled its stake in bitcoin mining firm Hut 8 yesterday. It now holds a 10% stake in the Toronto-listed crypto mining company. The mining firm under question here raised a total of C$8.3 million this year itself.
Development of ASIC machines specifically for crypto mining
The machines enabled with Application-Specific Integrated Circuits (ASICs) were first introduced by another Chinese based company Canaan Creative. The evolution of Bitcoin hardware has raised a lot of hopes among various classes of investors. Bitmain and Halong mining are dominating the hardware industry to unearth digital currency. Increased efficiency of 27% noted with ‘Antminer S19 Pro’ developed by Bitmain and launched in May 2020.
International interests have led to a hash rate war
Countries like Venezuela plan to regulate the mining business with the utmost strictness and regulation. As they are only plans as of now, companies have started to increase the speed of mining bitcoin. It has helped in an increase in hash rate on an average basis. The halving event this year has not had a major impact on the mining business. It requires cheap electricity costs for the project to be viable in all aspects. Moreover, continuous investment in the sector has improved the mining efficiency day by day.