Bitcoin mining remains a fundamental way to understand the financial and non-financial health of the bitcoin network since it makes it possible to mine amounts of bitcoins and then move them around. And though relatively little is said about it, miners have actually already played a vital role in the crisis we are still facing.
Several pieces of news come such as layoffs, the purchase of new machines, and the search for more efficient processes to allow the industry to achieve its sustainability goals. The latest news coming from this sector is the expansion of Compass Mining, which is apparently ready to add another 25,000 ASIC machines in Texas, which is only going to start more controversy but at the same time is a sign of extreme strength of a sector that has just gone through 3 months of fear, uncertainty, and doubt.
Bitcoin mining is one of the crucial elements of the whole ecosystem and has been for quite some time now at the financial level as well. In the United States, in particular, there are several well-articulated companies doing this kind of activity, as well as some publicly listed ones.
And among the most important ones, we can see Compass, which despite having had to cut staff recently has anyway followed through on its expansion projects in Texas, where thanks to a collaboration with North Compute it will increase its machinery stock by as much as 25 thousand units, in a power station that will use unique systems to reduce environmental impact and also the use of water.
In this state that is going through a period of severe heat and dryness, some mining companies have decided to shut down their mining “power plants,” thus also showing a certain level of awareness not only of the issues of climate change but also of social issues.
And so mining remains at the heart of a political discussion as well. We can see some progress in this sense in Europe, particularly in Sweden. That same mining that among other things is also at the center of attack campaigns against Bitcoin and thus will keep playing an important part in public debate.
However, this debate will also be internal to Bitcoin investors, since the miners themselves have been among the biggest sellers of bitcoin during this latest crisis phase, looking for liquidity to keep their businesses going.
In Q2 2022, #Bitcoin mining efficiency surged 46% YoY, and sustainable power mix reached 59.5%, above 50% for the 5th quarter in a row. The network was 137% more secure YoY, only using 63% more energy. It is hard to find an industry more clean & efficient.https://t.co/gqYn8qew9R— Michael Saylor⚡️ (@saylor) July 19, 2022
Michael Saylor CEO Of Microstrategy, posted a recent tweet to reply to all the Bitcoin critics. This is also quite understandable since MicroStrategy is one of the largest companies exposed to Bitcoin.
In reality, the mechanism ruling Bitcoin mining works well but this is hardly mentioned by most. And although with some insecurity due in part to the price of bitcoin, it will keep on supporting the working of a free market, where the biggest disruptions and hesitations will almost surely come from the state’s attempt to poke its nose into this kind of business.
Progress has been made in terms of going green, just as we have been witnessing for a while now a shift of miners to other jurisdictions within which arranging “green” production is significantly easier.
Since the staff layoffs, Compass has expanded its operating targets and increased the number of machines, as we wrote above. We believe there will be a stronger groundwork to see more staff involved in the future when the market gets positive again. In this market, self-regulation will ensure profits for those who contribute to network safety, as well as a green path that could silence protesters.