A different kind of ATH for Bitcoin and why it might matter
The Bitcoin network made headlines this week after its hash rate managed to reach a new all-time high of 248.11 million terahashes per second. However, a slight drop was noticed on 14 February. Even so, there was strong support for a continued trend towards accelerated security on the network.
Source: YCharts
A deeper look at the contributing mining pools highlights that the Foundry pool has been dominating the hashrate for a while now. It even became the top Bitcoin mining pool in December last year. Interestingly, at the time of writing, it contributed 17.58% of the network’s total hash power; it had begun operations in June last year.
Source: IntoTheBlock
Foundry’s inception can be traced back to China’s blanket ban on Bitcoin mining in May last year. The effects of which were far-reaching due to the concentration of mining in the country. One of its biggest consequences was a shift in mining power to the USA. Companies like Foundry set up their shop in the country’s rural pockets, majorly in the states like Georgia and Texas.
Other companies have also followed Foundry’s model of picking up China’s losses. Thereby, making profits enough to become assets in Valkyrie’s new BTC mining ETF. No wonder many firms in the space can’t keep their hands off the sector. For instance, Bitfinex and Tether announced their own mining investments recently.
<p lang=«en» dir=«ltr» xml:lang=«en»>#tether and #bitfinex have been investing in #bitcoin mining recently. Our strategy is ensuring enough geographical and political diversity as a priority VS 1/2 cent electricity. Cheap electricity can create concentration. Good for companies, not necessarily the best for BTC.— Paolo Ardoino (@paoloardoino) February 13, 2022
The mining craze has also
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