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Ethereum Miners Surpass Bitcoin Miner Revenue By $224M

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Ethereum Miners Surpass Bitcoin Miner Revenue By $224M

After the continuous sink in the mining profitability of both digital assets year-on-year, Bitcoin miners have been set back to seats as Ethereum miners consecutively surpassed them in mining revenue and recorded a gap of $224 million in April 2022.

This month was not so good for Bitcoin miners as they were able to generate around $1.16 billion only. Notably, this figure is down by $44 million from the previous month’s mining revenue of Bitcoin. The last month saw $1.7 billion in recorded income.

Related Reading | TA: Ethereum Bears Aim Big After Recent Breakdown Below $2.5K

Bitcoin miners’ total profitability was down by 31% from April 2021 to the present. In that time, $1.7 billion in revenue was recorded.

Similarly, the single-day high of BTC mining revenue in April was 3% low than the peak value of March. As per YCharts, the best-day high in March 2022 lasted at around $47.54 million and $46.01 million in April. And it dropped 23% from the best-day high of January, which saw $60.16 million.

Unlike Bitcoin, Ethereum mining revenue in April increased by 3% generating $1.39 billion. While Bitcoin, at the same time, recorded $1.16 billion in mining revenue.

Bitcoin currently trading at $30,700 with a 9.6% decline over the past 24 hours | Source: BTC/USD chart from Tradingview.com

Still, the Ethereum mining revenue has decreased yearly from its previous marks recorded till April. The mining revenue of Ethereum in April 2022 is 17% below the previous year’s mining income of April 2021. Last year it was around $1.68 billion.

Ethereum Becomes Preferred Choice Of Miners In 2022

Although Bitcoin stands as the largest and most popular digital asset, Ethereum has become the most preferred choice of the miners seeing a higher income generated in 2022.

It was not the first time Ethereum outpaced Bitcoin in mining revenue; it surpassed BTC mining by $260 million in January, $190 million in February, and $130 million in March 2022.

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To understand the reason behind disparities in the mining incomes of two digital assets, first, it needs to consider the fact that mining revenue is calculated per the value of cryptocurrency and earned coins within a specific timeframe.

Likely, Ethereum mining revenue increased in March 2022 and traded between $3,000 to $4,000 until most of April. And it traded in the range of $2,900 and $3,400 in March.

On the other side, the Bitcoin price in April traded between $37,000 and $44,000. And in March, it had a higher trading value ranging from $43,000 to $48,000.

Related Reading | Bitcoin Price Plummets To Lowest Point In 2022, Will $33,000 Hold?

Crypto mining is the process of verifying and adding new transactions to the blockchain for a cryptocurrency. The miner who wins the competition gets rewards with some amount of the currency and/or transaction fees.

Featured image from Pixabay and chart from TradingView.com

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Number Of Busted Illegal Crypto Mining Farms In Iran Nears 7,000

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Number Of Busted Illegal Crypto Mining Farms In Iran Nears 7,000

Authorities in Iran have shut down close to 7,000 unauthorized facilities for cryptocurrency mining in the past two years, local media revealed. According to a report, most of the illegal bitcoin farms were concentrated in five provinces of the Islamic Republic, including Tehran.

Iran Continues Crackdown on Unlicensed Cryptocurrency Mining

Iranian officials have unplugged and disbanded a total of 6,914 crypto farms operating without a mining license. This since authorities started clamping down on the illegal extraction of cryptocurrencies in 2020, the English-language Iranian daily Financial Tribune unveiled this week.

The newspaper quotes a report by Iribnews.ir, which details that these facilities have burned some 645 megawatts of electrical power while minting digital currencies without permission. It has been estimated this equals the annual consumption of three major regions — North Khorasan, South Khorasan, and Chaharmahal-Bakhtiari.

Cryptocurrency mining has been a legal industrial activity in Iran for almost three years now, after the government approved regulations for the sector in July 2019. A licensing regime was introduced and companies that want to get involved in the business need to obtain authorization from the Ministry of Industries.

However, as registered crypto miners are required to buy the electrical energy they need at higher, export rates, many Iranian miners have opted to remain under the radar. They usually connect illegally to the grid and use subsidized electricity to power their mining hardware.

Iran’s Power Generation, Distribution, and Transmission Company (Tavanir) has been going after underground crypto farms, closing them down and confiscating hundreds of thousands of mining machines. If identified, their operators can be fined for damages inflicted on the distribution network and a report revealed last month that the government is preparing to increase the penalties.

The country’s electricity shortages last summer were partially blamed on increased electricity usage for coin minting and even licensed miners were asked to shut down their equipment. They were allowed to resume operations in September but then again ordered to suspend activities in the face of a growing power deficit in the cold winter months.

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bitcoin farms, Bitcoin Miners, Bitcoin mining, closed down, consumption, Crackdown, Crypto, crypto farms, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, deficit, Electricity, fines, Iran, Iranian, Miners, mining, mining farms, penalties, shortages, shut down, Tavanir

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Do you expect Iran to continue to crack down on unlicensed crypto mining? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Russia’s Anti-Monopoly Agency Proposes Higher Electricity Rates For Home Crypto Miners

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Russia’s Anti-Monopoly Agency Proposes Higher Electricity Rates For Home Crypto Miners

The anti-monopoly service of Russia has suggested that Russians minting digital currencies at their homes should pay more for the spent electrical energy. The proposal comes after the submission of a bill tailored to regulate cryptocurrency mining to the Russian parliament.

Russian Miners Using Household Electricity Should Pay Higher Bills, Anti-Monopoly Body Says

Russia’s Federal Anti-monopoly Service (FAS) has designed a scheme to charge amateur crypto miners increased rates for the electricity they use. The agency insists its approach to solving the problem with rising consumption in residential areas, due in part to the growing popularity of mining, can reduce the load on the electrical networks.

Authorities in the Russian Federation maintain differentiated electricity tariffs depending on the status and location of consumers, the Rossiyskaya Gazeta daily explains in an article. Businesses subsidize household prices through their own tariffs, which can be up to two times higher than the rates for the general population.

Private consumers often try to exploit their low rates to earn money by powering anything from car repair shops to woodworking shops, the Community of Energy Consumers association notes. As a result, grids in residential areas are overloaded as they are not designed to cope with the excessive power usage, which has also spiked due to home mining.

The FAS now wants to introduce a threshold for electricity consumption, above which higher rates will be imposed. Thus, according to the anti-monopoly service, household needs will be separated from commercial ones. The consumption of various household appliances, including those with increased power usage like air conditioning units, will be accounted for.

Each Russian region will be able to set the amount of electricity that will be supplied at preferential rates, taking into account factors such as power usage for heating in the cold months and the length of the heating season, the FAS pointed out. In December, the federal government allowed regional authorities to independently determine the local electricity tariffs.

Power supply networks in the residential areas of many regions with historically low electricity prices, such as Irkutsk Oblast, Krasnoyarsk Krai, and Dagestan, have suffered breakdowns due to the spread of improvised crypto mining farms minting coins in basements and garages.

The introduction of differentiated tariffs is expected to reduce interest in mining and other ways of earning at the expense of subsidized household electricity. The agency hopes the new approach can also lower production costs for businesses calculated in the prices of their goods and services, ultimately suppressing inflation.

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The proposal comes as Russian lawmakers are reviewing a new draft law on cryptocurrency mining. The legislation aims to regulate the industry in the country, which is rich in cheap energy resources and favorable climatic conditions. Its competitive advantages can potentially turn Russia into a global mining leader, officials have acknowledged.

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What are your thoughts on the new electricity pricing that will affect crypto miners in Russia? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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275 EH/s

Bitcoin’s Hashrate Taps An All-Time High, Next-Gen Machine Deployment Could Push It Much Higher

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Bitcoin’s Hashrate Taps An All-Time High, Next-Gen Machine Deployment Could Push It Much Higher

Bitcoin’s hashrate has once again reached an all-time high (ATH) this year, as the network’s processing power reached 275.01 exahash per second (EH/s) on May 2, 2022. The recent ATH follows a significant difficulty jump on April 27, and bitcoin’s value lost 6.2% against the U.S. dollar over the last two weeks.

Bitcoin Hashrate Taps 275 Exahash

Just recently, Bitcoin’s mining difficulty tapped an ATH at 29.79 trillion and it’s currently the most difficult it has ever been to find a BTC block reward. On April 27, after coasting along at 28.2 trillion for two weeks prior, the network’s difficulty jumped 5.56% higher.

Bitcoin miners have continued to keep the high-speed tempo going despite the difficulty rising. Moreover, over the last two weeks, BTC has shed 6.2% in value against the U.S. dollar. The price drop has also made it less profitable for bitcoin miners during the two-week downturn.

At the time of writing, Bitcoin’s hashrate is coasting along at 238.22 EH/s. Two days ago, the network tapped an ATH on May 2, 2022, at block height 734,577.

Despite those two setbacks, bitcoin miners have pushed the hashrate up to a new all-time high in terms of computational processing power. The hashrate reached the highest it’s ever been at 275.01 EH/s on May 2, 2022, at block height 734,577.

The network previously reached an ATH 1,380 blocks prior to the 275 EH/s high at block height 733,197, on April 23. At that time, the ATH recorded was approximately 271.19 EH/s. Data shows that since block height 733,197, the overall hashrate increased 1.40% in seven days.

Soon-to-Be Deployed Next-Generation Miners

Seven-day statistics indicate that Foundry USA was the top mining pool after capturing 233 out of the 1,071 BTC blocks found last week. Foundry USA has 21.76% of the network hashpower with a 49.29 EH/s average over the last seven days. The second-largest mining pool this past week was Antpool, as it captured 145 block subsidy rewards last week.

Antpool has held 13.54% of the global hashrate in the one-week timeframe with 30.68 EH/s. Today, 12 known pools are dedicating hashpower to the BTC network and 0.93% of the global hashrate, or 2.12 EH/s, is operated by unknown bitcoin miners.

With Bitcoin’s hashrate reaching an all-time high before bitcoin mining rig manufacturers have shipped the latest next-generation machines, the hashrate could very well go much higher from here. Next-generation miners from Bitmain and Microbt, which pack a lot more hashrate, are due to ship next month.

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Moreover, Bitmain’s hydro bitcoin mining rig, the Antminer S19 Pro+ Hyd., commands 198 TH/s and has been released this month. Depending on lead times, miners could be deploying these high powered, next-generation miners and upping the network’s overall hashrate a great deal.

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275 EH/s, 275.01 exahash, All time high, Antpool, ATH, Bitcoin, Bitcoin (BTC), Bitcoin Miners, Bitcoin mining, Bitmain, BTC Mining, difficulty, Foundry USA, Hashrate High, Hashrate Jump, Microbt, mining rigs, Next Generation Miners

What do you think about the hashrate rising to new highs on May 2? Do you expect the hashrate to increase after next-generation machines are deployed? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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