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Bitcoin miners intend to flock into the US following China’s crypto ban

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With the demand for crypto reaching a new height, the mining industry was seen thriving. Bitcoin [BTC] miners were making the most of the flourishing demand for the asset. However, the fervor around the business had migrated from China onto the United States.

China was at the forefront of the Bitcoin mining game. The largest mining firms were residing in the country. Following the recent ban not just the mining side of the industry, but a large number of exchanges and firms related to crypto moved out of China.

Not too long ago, the Chinese government went on to oust an array of crypto mining firms out of the country. While the initial buzz was that all these Bitcoin mining firms were moving into Kazakstan, a new report suggested that miners were keen on flocking into the US.

Bitcoin miners choose US over China

The US has clearly had a love-hate relationship with the crypto-verse. While the country has welcomed certain parts of the crypto industry with open arms, a few others have been outrightly shunned. As per a recent report released by Cambridge University, a vast number of Bitcoin miners were interested in setting up shop in the US.

CNBC further reported that the US was replacing China as the leader of the Bitcoin mining space. These weren’t blatant assumptions as the US accounted for about 40% of the total Bitcoin hash rate back in July. Therefore, it was clear that BTC miners were interested in exploring the US shores to carry out mining activities.

This was the first time that the US had taken over China in terms of crypto mining destination.

Darin Feinstein, the co-founder of Core Scientific revealed that over the last year significant mining infrastructure was being set up in the US. Feinstein stated,

“We’ve noticed a massive uptick in mining operations looking to relocate to North America, mostly in the U.S.”

Cannada was also a place of interest for several mining platforms.

China officially categorizes crypto mining under eliminated industries

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The great China crypto crackdown continues and this time the mining sector is in trouble. The Chinese government has been overtly scrutinizing the crypto-verse. An array of platforms have been forced to move out of the country. While several have been speculating that this was the demise of the crypto scene in China, the government of the region went on to provide assurance for the same.

China’s National Development and Reform Commission in its latest list of eliminated industries went on to add Bitcoin mining. Ever since the country started out this crackdown, it was seen targeting one aspect at a time. From mining firms to exchanges, the government left no leaf unturned. A few weeks ago, an array of mining platforms were seen exiting the Chinese market. This not only disrupted their workflow but also caused major losses to several mining platforms.

The National Development and Reform Commission [NDRC] of the country revealed that crypto mining fell under the category of eliminated industries following a public consultation.

China’s latest move against crypto

The NDRC oversees the economic development of the country and 8BTCnews noted that this was an official ban on all crypto mining activities in the region.

The news portal tweeted,

“Breaking! China’s Development and Reform Commission publicly solicited opinions on the “Negative List of Market Access (2021 Edition)”, and included virtual currency “mining” activities in the elimination category as “Outdated production technology and equipment”.”

China
China officially categorizes crypto mining under eliminated industries 2

China was previously home to one of the biggest crypto mining firms in the world. This was soon changed as several well-established firms were asked to shut shop and exit the country. The country’s take on crypto had the entire world stunned. While some suggested that the country couldn’t deal with the level of “decentralization” the crypto industry provides, a few others noted that the government was making room for its central bank digital currency [CBDC], the digital yuan.

Back in June, about 26 mining firms in Sichuan were asked to stop rendering services due to an investigation. Many mining firms were seen relocating to various parts of the world, however, a majority of them were migrating to Kazakhstan.

Bitcoin mining firm greenidge merges with Support.com as Nasdaq beckons

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Mergers and acquisitions have played an important role in building the cryptocurrency ecosystem as they allowed the entry of new interested entities. The recent crypto boom also allowed several niche companies to become part of the traditional financial juggernaut. This new wave for tie-ups was further evidenced when Bitcoin mining firm Greenidge merged with Support.com to become Nasdaq’s latest entrant. Greenidge shares will be traded as GREE from here on out, combining the entities of both companies. 

According to the merger details, each share of Support .com will be canceled and converted into the 0.115 shares of Greenidge Class A common stock. If there remains any fraction of the exchange leftover, it will be settled in cash. Greenidge first shot to fame after committing to a 100 percent carbon-neutral Bitcoin mining process at all their locations. Post the merger announcement, Greenidge CEO Jeff Kirt stated:

“This merger is an important next step for Greenidge as we build upon our existing, integrated, and proven platform for Bitcoin mining and generation of lower-carbon affordable power.”

As soon as the merger is complete, Support.com is set to become a wholly-owned subsidiary of Greenidge Generation Holdings Incorporated. The merger is being overseen by the United States Securities and Exchange Commission [SEC], which published a report on the two companies. Sources close to the merger informed us that Support.com will further provide a $33 million cash influx to streamline the merger.

Support.com President Lance Rosenzweig was of the opinion that the partnership would open up new doors in a regulated cryptocurrency environment. The cash flow is set to be directed into customer interface, security software, and improving the privacy expertise of the organization. The mining firm will conduct its operations from its upstate New York facility with support from its other branches.

China bans hydropower stations from providing power crypto mining firms

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China’s onslaught on the Bitcoin and crypto industry is far from over. In a fresh blow to whatever’s left of the mining industry in China, the country’s authorities have now resorted to prohibit the hydropower stations from providing power to crypto mining companies.

According to the latest report, China’s People’s Government Office of Yingjiang County, Yunnan Province has released a notice calling to ban all illegal hydropower stations from supplying Bitcoin and cryptocurrency mining companies. It urged municipalities across different provinces to notify all hydropower stations in their jurisdiction to stop them from supplying electricity for crypto mining firms and also directed the removal of any mining equipment or rigs, if any, before Wednesday, 25th of August from the power plant areas.

The circular also mentioned that the regulatory entities intend to establish workshops and related departments to force the dismantling of the crypto mining rigs. There is no room for negotiations and if the hydropower stations do not comply with the warning, they will be dismantled by the State Energy Bureau.

The official report further mentioned,

“The Yunnan Provincial Energy Bureau previously stated that it will seriously investigate and punish the illegal activities of Bitcoin mining companies relying on power generation companies, unauthorized access to electricity, evasion of national transmission and distribution fees, funds, and additional profit-making.”

China’s relationship with crypto industry

China has always been wary of the cryptocurrency industry despite being pro-blockchain. Earlier this year, the regulatory authorities in the country outlawed the mining of Bitcoin and cryptocurrencies. This was enough to trigger not just a slew of corrections in the market but also caused a wave of migration by miners from China to central Asia and North America.

Since then, Bitcoin has seen a notable recovery. For instance, it broke a crucial high to hit $50K on the 23rd of August. TWJ had earlier reported about the network’s steady hash rate and difficulty recovery.

Bitcoin profitability expected to surpass 35 percent as users go all in

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The cryptocurrency market has settled into a rhythmic motion of bullish crests and bearish troughs with major coins flipping the script. Bitcoin being the largest cryptocurrency in the market has had its fair share of scrutiny under the financial microscope. Even though BTC’s value was much below its all-time highs, factors such as profitability and number of new users.

Analysts also predict a rise in prices in the coming months if the peripherals continue to climb. The combined positive factors play a big role in boosting investor sentiment in the cryptocurrency ecosystem. The short-term rise could mainly be attributed to the recent miner exodus from China. As it stands, the Bitcoin market is expected to enjoy a profitability factor of 35 percent or more soon. Following this news, Compass CEO Whit Gibbs said:

“We are expecting a period of much higher mining profitability for Compass Mining clients. We expect miners to be approximately 35% more profitable.”

At press time, Bitcoin was trading for $34,239 with a total market cap of $ 641.9 billion. A 3.6 percent daily dip brought the cryptocurrency’s 24-hour trading volume to $24.36 billion. Bitcoin’s price action came after a bear run wiped off more than 27 percent of its total 2021 earnings. Despite this situation, proponents such as Blockcap founder Darin Fernstein were confident in the asset’s future growth. The mining exodus was also seen as an unexpected “gift” to the Bitcoin network.

Kazakhstan became the hub for a majority of cryptocurrency miners after China’s latest policy. Most of them opined that they would settle in a region where the government actually supports them rather than infringing upon their functions. One of the main reasons for this has been a mix of lack of transparent regulations and government lethargy.

Kentucky To Elevate Crypto Activity By Offering Tax Breaks

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With the crypto industry gaining traction across the globe, several regions have started to scrutinize the market. Kentucky, however, is trying to attract more crypto activity in the country by offering tax breaks.

Bitcoin and other cryptocurrencies have been surging in terms of price. Bitcoin rose close to a high of $60K. This seemed to have attracted an array of people into the industry which further elevated the activity of the miners while making the rewards they get more valuable. As several regions have been pouring in their funds into crypto mining, Kentucky seems to be jumping on the bandwagon.

Kentucky To Steer Towards Crypto Mining

In a recent report, it was revealed that the lawmakers in Kentucky were looking to spruce up the adoption rate of crypto in the region. A bill was reportedly given a green signal by the government for eliminating the tax on electricity used for crypto mining by the local operators.

The summary of the bill read,

“Create new section of KRS 139 which defines various terms relating to commercial mining of cryptocurrency using blockchain technology, provides sales and use tax exemptions on the tangible personal property directly used and the electricity used in commercial mining of cryptocurrency as of the date of approved application, provides for a four year sunset from July 1, 2021 to June 30, 2025, and requires the amount of the exemption to be reported by the Department of Revenue beginning on January 1, 2022 and every January 1 thereafter;”

A whopping $1 million a year was noted as the bill’s fiscal noted to the General Fund.

Crypto mining isn’t an easy process, noted Representative Steven Rudy. He pointed out that it wasn’t the job of people “sitting in their mom’s basement” whereas, the process is extremely “sophisticated” as well as technical.

An array of US states have been exhibiting interest in crypto. Miami was seen taking a plunge into the industry while several others followed. Kentucky seemed to be joining this list.

Belarus Looks Into The Prospects Of Crypto Mining

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The rise in the value of cryptocurrencies has also surged the industry’s popularity. While countries like Belarus have been evaluating the pros and the cons of the industry, a few others like India seem to be stringent about letting their citizens use crypto.

Crypto mining is considered to be exceptionally profitable, despite the amount of electricity the process takes. Examining the same, the Belarus government revealed that it was looking into the mining of cryptocurrencies like Bitcoin [BTC].

Belarus To Jump Onto The Crypto Bandwagon?

In a recent announcement, the Ministry of Energy of the Republic of Belarus proclaimed that it had started an investigation pertaining to the advantages and the disadvantages of crypto mining. Belarus has time and proved to be a crypto-friendly country. The European nation legalized crypto mining, trading, buying, and selling of digital assets back in 2017. This move was made by President Alexander Lukashenko with regard to the country’s steer towards digitalization.

The President had previously revealed that he intended to use the excess energy attained from the country’s nuclear power plant and direct it towards the mining of crypto.

Minister Viktor Karankevich, in the latest announcement, revealed that the Belarus government intends to be a part of the crypto mining industry that has witnessed drastic growth. With countries like Russia, China, the United States as well as Canada veering into the crypto mining industry, Belarus is the latest to join the party.

The announcement further read,

“This is a new direction for us now. It is interesting but in order to get started with it, we have to conduct a detailed study of this issue, including an assessment of possible risks associated with this kind of activity. We’re on this.”

While the country is still assessing the risks that surround the crypto mining industry, the government could soon find its way into it, the announcement suggested. With the value of the industry skyrocketing, Belarus’ move could be beneficial for the country’s development.

Malaysian Authorities Bust Crypto Miners For Stealing $600K Worth Electricity

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The cryptocurrency ecosystem has gained tremendous popularity and value over the last decade. The cryptocurrency mining industry, specifically, miner rewards has caught the attention of many. The rewards that miners earn after mining every block seems to have opened doors for many crypto miners as they have been flooding the ecosystem regardless of the resources. In more recent updates, two crypto platforms were raided by Malaysian officials for stealing electricity to facilitate crypto mining operations.

Malaysia’s Big Crypto Mining Arrest

As reported by The Star, a total of 2.5 million Malaysian Ringgit [600,000 USD] worth of electricity was stolen over a period of three years in Iskandar Puteri. The raid was carried out by Malaysia’s Energy Commission along with Tenaga Nasional Berhad [TNB], a multinational electricity company along with Iskandar Puteri City Council.

TNB reportedly incurred a loss of 80,000 Malaysian Ringgit every month which was about 20,000 USD. Nazlin Alim Sadikhi, the Regional Director of the Energy Commission revealed that illegal wiring was installed to make sure that the electricity went through directly and not through the TNB meter. The Director further said,

“The first premises is believed to have been operating for three years while the second premises for two years. We found 100 mining machines in the first premises and another 48 in the second premises.”

Post the raid, the authorities concluded that the electricity bills for both the first and the second premises accounted for 30 Malaysian Ringgit and 60 Malaysian Ringgit a month, respectively, as opposed to the 80,000 Malaysian Ringgit.

It is not news that crypto mining consumes a lot of electricity. Reports even suggest that crypto mining accounts for 0.21% of the world’s electricity supply. If the accused are found guilty, they would be obligated to face a total of ten years in prison or a hefty penalty of $1.2 million, under Section 37 of the Electricity Supply Act of 1990.

After China, Malaysia seems to be a hotbed for electricity thefts, particularly for crypto mining. In 2020 alone, Malaysian authorities reportedly took down about 90 such operations. A total of 288 mining busts have taken place in Johor since 2018. TNB’s Team Engineer, Mohd Satari Mohamad added,

“In most cases, the owners of the premises were in cahoots with the cryptocurrency mining operators. They have similar operation methods where they have illegal wiring installed to the mining machines to illegally draw electricity supply.”

Bitcoin Hash Rate Begins a Steady Climb as Investors Keep Tabs on Yunnan BTC Mine Fire

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The bitcoin halving that occurred in May was the town’s talk with a number of proponents and experts predicting a price surge. Although the world’s largest cryptocurrency has not seen a significant increase in its value, Bitcoin has remained steady between the $9,000 and $10,000 margins over the past few weeks.

After halving, Bitcoin also witnessed a dip in its mining hash rate. This was a direct consequence of the shutdown of several mining machines, which caused an increase in demand while the supply rate fell. June, however, brought some good news as the hash rate seemed to have gained some new ground.

On June 14, Coinmetrics noted that the Bitcoin rate had gone back to its earlier levels, ie. The levels achieved before the halving commenced on May 4. Coinmetrics claimed that the next difficulty adjustment would take place in approximately two days. This event is expected to be the largest adjustment scenario since January 2018, with an estimated 15 percent increase.

Analysis has shown that this is going to be the first difficulty increase since bitcoin was halved. The Bitcoin ecosystem has seen a resurgence of late due to a steady price hold. The world’s largest cryptocurrency has also instilled some confidence in the holders as a virtual asset in the wake of a global pandemic.

During the halving, the Bitcoin CMBI hash rate index dropped from 130 million terahashes per second to below 90 million terahashes per second. This also triggered large market sales. Although the hash rate has risen, the price has surprisingly dropped below expectations at the start of the new week. At the time of the press, Bitcoin traded $9061 with a total market cap of $166.7 billion. The 4 percent drop in the 24-hour spectrum caused the BTC market volume to drop to $21.42 billion.

Bitcoin enthusiasts are still looking for reprieves that will initiate price recovery, but they seem to have to wait a little longer. According to recent reports, a large mining farm in China in Bitcoin was the victim of a fiery inferno last week. The mine reportedly housed thousands of Yunan police machines still investigating the root cause of the fire. The effect of this destruction on the Bitcoin ecosystem has not yet been felt, but many predict that the fallout will soon be observed.

China has slowly increased its foothold in the cryptocurrency industry, and its dominance is growing with each passing day. Bitcoin fans may do well to observe movements within the Red Dragon, as the latest Yunan mine fire may have a greater impact than previously expected.

Monero Mining Malware has Infected 1000 Corporate Computers 

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Since December 2019, more than 1,000 corporate computer systems have been infected with Blue Mockingbird malware by cyber criminals. The global spread of Monero mining malware was reported by Red Canary Cloud Security Company on May 26.

According to the report, monero mining malware attacks servers running ASP.NET applications and is most vulnerable to installing a web shell on the attack system. This inturn gives the administrator level of malware access to change the server settings.

Furthermore, the attackers are installing the XMRRig application to exploit the resources of the hacked system. According to Red Canary, the majority of the computer systems used are owned by big corporations, but the cloud security firm did not reveal names.

Remote Desktop Protocol’s weaknesses exploited by Monero mining malware

The cybercriminals utilized the weaknesses in the Remote Desktop Protocol in Windows operating system to access the computer systems. The report notes that although the attacks happened within a short period of time, it is hard to evaluate the total number of attacks. Indeed, this approach has been used before in the recent Trojan ransomware attacks.

Additionally, Red Canary has cautioned the firms that have not yet been infected to be at a higher risk of their system being breached by the Monero mining malware. According to the threat analyst at Emsisoft malware lab:

“Cybercriminals specifically seek out weaknesses in the internet-facing systems and, when found, exploit them. Companies can significantly reduce their risk factor by following well-established best practices such as timely patching, using MFA, disabling PowerShell when not needed, etc.”

Rise in ransomware attacks

The use of  XMRRig app for illegal mining of cryptocurrencies has been a common practice by various groups of hackers. Back in 2019, cybersecurity companies Symantec and BlackBerry Cylance cautioned on the penetration of the XMRRig app through music files.

Furthermore, in November of the same year, malware attacked weak Docker occasions to install the crypto-jacking software.