New Years boom for Bitcoin miners
Most Bitcoin miners are likely to have started 2021 more than satisfied given the high sales figures. But they cannot benefit from the upswing everywhere.
The mining industry is booming. This is shown by figures from “The Block”. According to this, Bitcoin miners recorded total sales of about 1.12 billion US dollars in January of this year. This year’s sales even exceed the sales of January 2018 (1.02 billion US dollars) and are just behind the record sales from December 2017 (1.25 billion US dollars).
It is interesting here that the proportion of the so-called “block subsidy” has increased enormously compared to the comparative values from January 2018 (814.73 million USD) and December 2017 (954.38 million US dollars). The percentage of “pure” Bitcoin mined is now breaking the billion mark for the first time. The turnover from transaction fees has increased compared to the previous months, but in relation to the previous record months, the proportion from January 2021 remained relatively low. In December 2017, transactions accounted for 296.36 million US dollars in the total turnover of the Bitcoin miners. As early as January 2018, this ratio had decreased to 204.25 million US dollars. Three years later, that portion is now $ 116.07 million.
Miner pays subsidy to Bitcoin maintainer
Meanwhile, miners are also subsidizing developers who are working on improvements to the Bitcoin network. The Swiss Bitcoin maintainer Jonas Schnelli recently received a grant of 96,000 US dollars from the Nasdaq miner Marathon Patent Group. Schnelli said about the payment:
“It’s an acceptable salary. Much less than I could get as a software developer in a company. But I’m here because of the Bitcoin ethos, not the money.”Jonas Schnelli across from The Block
Schnelli wants to use the money to continue to implement improvements on the Bitcoin network.
Iran closes crypto farms
Meanwhile, the crypto year 2021 begins catastrophically for most private miners in Iran, because the mullah state is currently cracking down on crypto miners. The Gulf state is currently suffering from recurring power failures. The Islamic Republic sees the blame for this on illegal miners, who used too much electricity and overloaded the network. With that, Iran is returning to conditions like in 2019. Since the country banned the mining of Bitcoin and other crypto currencies without further ado, because of an also too high energy consumption.
After the USA and the EU imposed new sanctions on Iran in 2020, the government in Tehran legalized Bitcoin mining again, but only for licensed operators. The Iranian regime used this method to try to circumvent the sanctions. With the help of a government subsidy program for electricity prices, it became a popular mining location. According to the University of Cambridge, Iran currently ranks sixth in the international mining ranking.
Now the Iranian law enforcement agencies seem to be taking even stronger action against illegal miners. According to the Associated Press, Iranian police have closed around 1,600 mining farms in the country. As reported by the Iranian news agency Tasnim News Agency, around 45,000 mining computers were confiscated in the raids.
Critics accuse Iran of distracting from a fundamental structural problem. Above all the Iranian scientist and former politician Kaveh Madani. He said that Bitcoin was an easy victim and that “years of mismanagement” were responsible for the current situation.