Some social data suggests that bitcoin mining is more popular than ever among retail participants as a surge in interest that started early last year continues, despite a market downtrend.
Bitcoin is currently trading roughly 50% lower than its latest all-time high of around $69,000, set in early November 2021. But even with bitcoin’s steady price decline over the past few months, certain online communities are buzzing with novice and seasoned miners alike discussing best practices, new products and educational resources for successful mining. Sustained activity and growth in these communities, despite a market downturn, suggests that widespread interest in mining relative to previous years is insulated from the bitcoin market’s characteristic volatility.
Different Data, Different Stories
Before discussing the data though, it’s interesting to note that one of the Bitcoin community’s favorite sentiment datasets doesn’t reflect this trend. Google search interest is a favorite tool for gauging mainstream interest in all sorts of Bitcoin- and cryptocurrency-related activities and investments. The basic reasoning behind inferring general interest from this data holds that when more people are interested in Bitcoin, search levels for certain terms and phrases will increase. And when interest and activity taper off, search rankings will also decline.
But search data for several simple and common mining-related terms and phrases show low or declining interest levels. The below charts visualize this data for mining-related searches:
Worldwide Google Search data suggests cryptocurrency mining interest is declining.
Where The Mining Boon Is Happening
But maybe novice miners aren’t just asking Google to answer their questions. Alternate data suggests, in the case of mining popularity, Google Search rankings are a poor gauge of general interest and industry growth.
Twitter is often recognized as the leading social media platform for public cryptocurrency conversations, but for miners — especially novices looking for answers to their questions — Reddit is king. So, forget Google as a measure of mining interest because miners are flocking to Reddit forums to talk with their novice peers or learn from seasoned professionals.
Reddit users have created a variety of cryptocurrency mining-focusedsubreddits. A few of these communities boast tens of thousands of members, and growth across nearly all of them has been parabolic for over a year. Other metrics like the volume of daily posts and comments as well as subscriber activity rankings add to the growth seen in raw subscriber counts and signal healthy community growth, not just swarms of new members boosting the size of these forums.
The below charts visualize some of the data showing growth in Reddit mining communities.
Bitcoin mining’s subreddit rocketed from 40,000 subscribers to more than 80,000 by the end of 2021 and continues to climb through February. Before January 2021, that same subreddit took more than three years to double its subscriber count.
On Reddit, the growth of cryptocurrency mining forums is surging.
Other general cryptocurrency subreddits shown above also saw near-vertical growth curves in subscriber counts. The attraction to mining alternate cryptocurrencies, especially for new, small-scale miners, can often be explained by an interest in betting on higher profitability from smaller protocols and lower financial barriers to entry with hardware and other materials.
One key characteristic about this data is that the trend doesn’t lag bitcoin’s price — it’s entirely uncorrelated to it. Lots of data sets in mining lag bitcoin’s price, including prices for ASIC mining machines that characteristically climb or fall with bitcoin but with a delay. Instead of dropping with bitcoin’s price, the pace of growth in these Reddit communities has continued to surge. Retail interest in mining is a fixture of the ecosystem that seems to be unaffected by price volatility.
The Popularity Of Self-Mining
What type of mining are these communities interested in? Activity levels are high across Bitcoin mining and alternate cryptocurrency mining forums. But for all types of miners, the desire to self-mine with complete control of the operation is strong. The types of questions being asked in the forums signal this interest: The forums are filled with users discussing basic electrical questions, hardware comparisons and more. New miners are also asking about best practices for ventilation in different climates, noise and heat insulation tricks, revenue calculations and dealing with bricked control boards. Experienced miners, mining companies and other novice miners are all offering advice, educational resources and tips and tricks for successful mining. While some miners prefer to use hands-off hosted services like Wattum Management, Compass Mining, Blockware Solutions and others, the small-scale, self-mining operation is the main attraction for members of these mining communities.
All the mining fun isn’t only on Reddit though. Twitter conversations about mining news, products and educational resources have also grown considerably. Quantifying this growth is difficult though, since Twitter conversation and interaction data isn’t available as easily as Reddit data. But the growing crowds of miners on Twitter regularly post photos and videos of their setups, sharing advice on how they optimized their mining operations. A pair of active, pseudonymous Twitter users that use the nyms Diverter and Econoalchemist have also created powerful libraries of educational articles, threads and interviews targeting retail audiences that want to mine their own bitcoin.
There is no uniform or comprehensive instruction manual for how to mine at home, but dozens of other miners have followed the lead of these two creators, publishing their own educational content to help other would-be miners. Shared across Reddit, Twitter, YouTube and other platforms, this growing canon of content has played no small part in creating an army of retail miners.
The Future Of Retail Mining
What prompted a rush from retail into bitcoin mining is an open question with many possible answers. For one thing, mining profitability soared throughout 2021 as Chinese miners were forced offline, causing a massive shuffle in hash rate between mining pools and leaving money on the table for new miners, both retail and institutional.
For another, retail mining’s growth may be a reaction to the ongoing rapid industrialization and institutionalization of mining. In 2021, institutional mining certainly came to the fore of the Bitcoin market with a surge of mining companies going public (e.g., Rhodium, Core Scientific, Greenidge), a bevy of new financial products and services created for large-scale miners from companies like Galaxy Digital and NYDIG, and even a mining council being created to form a unified voice for corporate mining companies that might be targeted by regulators and lawmakers.
Possibly out of a refusal to forever accept mining as something for the “suits,” small-scale miners crowded internet forums and fueled a red-hot mining market for themselves. But whatever caused the mining craze, the online communities growing around it aren’t shrinking at all. Just the opposite, even as bitcoin sits well below last year’s all-time high, online mining communities are thriving, with growth and activity as strong as ever.
This is a guest post by Zack Voell. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
The founder of the decentralized exchange, dYdX, asserts that individuals involved in cryptocurrency development should direct their efforts toward international markets beyond the United States for the upcoming five to ten years.
Antonio Juliano conveys to his audience of 49,400 on the social media platform X that the prevailing regulatory uncertainty within the United States does not merit the associated challenges or concessions.
Juliano contends that it would be more prudent for cryptocurrency developers to establish their products in alternative countries and subsequently re-enter the United States from a position of strength.
“Cryptocurrency developers would be well-advised to temporarily discontinue catering to the US market and instead seek re-entry in a span of 5-10 years. The complications and compromises involved do not warrant the endeavor. Moreover, a substantial portion of the market exists overseas. It is recommended to innovate in those regions, ascertain product-market fit, and then return with greater bargaining power…
The paramount objective shared among all stakeholders is to secure a significantly more potent product-market fit for cryptocurrency. The pursuit of a robust product-market fit does not necessitate flawless distribution. A multitude of substantial overseas markets present avenues for experimentation.”
Juliano articulates that advocating for more amiable cryptocurrency regulations demands time, although the process could be expedited if developers manage to introduce products that elicit consumer demand.
“However, this perspective does not undermine the importance of efforts to influence US cryptocurrency policy. On the contrary, such endeavors are absolutely vital. Given the protracted timeframe required (in anticipation of re-entry), and considering that much of the world takes cues from the United States, it becomes evident that our progress in shaping policies hinges upon achieving global-scale product usage.”
The dYdX founder proceeds to emphasize that, with time, American citizens will come to realize that cryptocurrency is inherently aligned with US values and principles.
“The tenets of cryptocurrency closely align with American values. What concept could be more quintessentially American and reflective of capitalist ideals than a financial system conceived for the people, driven by the people, and answerable to the people? This, indeed, constitutes the very essence of our endeavor.”
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
Bloomberg Intelligence’s senior macro strategist, Mike McGlone, is conveying a pessimistic outlook for Bitcoin (BTC) in the immediate future.
During a recent interview on Kitco News, McGlone underscored that Bitcoin is currently displaying bearish signals even amidst the ascent of other high-risk assets.
“In the event of a downturn, adhering to a rule prevalent in bear markets, resources across the board could witness a reduction in value, and Bitcoin will not be an exception.
A crucial observation is the necessity for Bitcoin to exhibit divergent strength at a certain juncture, akin to the behavior of treasury bonds and gold in a deflationary economic environment. Regrettably, this pattern has not materialized.
After attaining its peak towards the conclusion of Q1, reaching approximately $31,000, driven by optimism and the influence of exchange-traded funds (ETFs), Bitcoin subsequently retraced to $25,000 or approximately $26,000. Presently, it is manifesting divergent weakness in contrast to the concurrent upsurge in the stock market.”
According to McGlone’s analysis, the ongoing “economic reset” implies a continuation of Bitcoin’s recent downward trend, although he anticipates that the premier cryptocurrency will ultimately attain a six-figure valuation.
“While I believe that Bitcoin will eventually achieve a valuation of $100,000, the onset of a global economic reset, as I anticipate, characterized by a standard deflationary recession leading to a decline in the housing and stock markets, analogous to the conditions of 2008—though arguably exacerbated due to the ongoing removal of liquidity from the system—Bitcoin’s role as an influential precursor comes to the forefront.
This underscores my point that Bitcoin has recently been taking on the role of a harbinger of trends. Its value ascended briefly to around $31,000, only to subsequently trend downwards. From my perspective, it serves as a leading indicator for a majority of high-risk assets.”
As of the time of writing, Bitcoin is trading at $26,079.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
Shiba Inu’s (SHIB) Latest Layer-2 Scaling Solution Nears Public Relaunch Following Recent Technical Challenges
Shytoshi Kusama, the enigmatic lead developer behind the SHIB project, has shared in a recent blog post that significant progress has been made in addressing the technical setbacks that temporarily halted the operation of Shibarium, SHIB’s new layer-2 scaling solution. The initial release of Shibarium encountered network issues that prompted its temporary closure. However, Kusama assured the community that diligent testing and parameter adjustments have led to notable improvements.
Kusama elaborated, stating, “After extensive testing and parameter refinements aimed at achieving a ‘ready’ status, Shibarium has undergone enhancements and optimization. While still undergoing testing, it is now successfully producing blocks.” Additionally, to prevent a recurrence of the past network overload, Kusama revealed the implementation of a new monitoring system and supplementary fail-safe measures. These include rate limiting at the RPC (remote procedure call) level and an automated server reset mechanism in the event of another surge in traffic.
With these advancements in place, the team is on the verge of reopening Shibarium to the public. As part of this progression, more network validators will be integrated into the ecosystem on August 23rd. Kusama emphasized the significance of this step, remarking, “Tomorrow, additional validators will become operational, expanding the options available for staking BONE. This will allow for a distribution of rewards earned through their roles within our community. As testing concludes, we will once again prepare for public utilization.”
Shibarium’s previous technical difficulties were attributed to an overwhelming influx of users and transactions during its initial launch. As of the current writing, SHIB is trading at $0.00000798, marking a 0.4% increase over the past 24 hours.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
FTX’s co-founder, Sam Bankman-Fried, is currently seeking a temporary release from incarceration. The purpose behind this endeavor is to engage in collaborative strategizing with his legal representatives within the confines of the federal courthouse situated in Manhattan.
In a formal letter dispatched to US District Judge Lewis Kaplan on a Friday, Bankman-Fried’s legal team expounded that their client’s capacity to effectively scrutinize the extensive legal documents pertaining to his case has been significantly curtailed during his time spent incarcerated at the Metropolitan Detention Center (MDC) in Brooklyn.
Christian Everdell, the attorney representing Bankman-Fried, divulged that the government recently disseminated a voluminous three-quarters of a million pages of Slack communications. These were originally due several months prior. Expressing the urgency of the situation, Everdell articulated, “Only last week did the government furnish an aggregate of approximately seven hundred and fifty thousand pages of Slack communications that were originally stipulated for release months ago. Given the current timeline, it is a futile endeavor for Mr. Bankman-Fried to endeavor to review these materials.”
He underlined the pivotal necessity for Bankman-Fried to collaborate meticulously with his legal team, emphasizing his dire need to avail himself of an internet-enabled laptop within the courthouse premises. Such a resource would undoubtedly expedite the process of comprehensive document review, an imperative undertaking in light of his impending fraud trial scheduled for the forthcoming October.
In riposte to Bankman-Fried’s plea for reprieve, the prosecuting body voiced apprehensions regarding his adherence to the prerequisites concerning his planned defense strategy. Notably, they underscored that Bankman-Fried is yet to furnish the complete gamut of essential information regarding the counsel upon which he predicated his actions.
The prosecutors proffered caution that unless Bankman-Fried promptly discloses the minutiae regarding the counsel he received and the provenance thereof, any attempt to interject such a defense during the trial should be summarily proscribed.
Although the prosecutors extended an offer to facilitate the transfer of documents onto hard drives for Bankman-Fried’s perusal within the MDC premises, a viable laptop-based solution was deemed unattainable. Initially, the notion of relocating Bankman-Fried to a more compact, upstate correctional facility where he could access an internet-enabled laptop was contemplated by the prosecutors. However, this proposal was met with resistance from prison officials.
Regarded for its starkly onerous conditions, the Metropolitan Detention Center has cultivated a notorious reputation among its inmate population.
Bankman-Fried’s Incarceration Stemming from Unsanctioned Internet Utilization
As documented, Judge Kaplan sanctioned the re-imprisonment of the beleaguered cryptocurrency luminary, citing alleged instances of witness tampering.
In that juncture, Judge Kaplan pronounced that a strong prima facie case existed indicating that the accused had endeavored to tamper with witnesses on no fewer than two separate occasions.
The decision was additionally influenced by Bankman-Fried’s unsanctioned use of the Internet while released on bail under the guardianship of his parents at their abode located in California.
Judge Kaplan discerned that Bankman-Fried had indulged in excessive communication with various individuals via electronic correspondence, even resorting to the utilization of a virtual private network.
Concurrently, the disgraced progenitor of FTX is simultaneously grappling with novel allegations brought forth by the Department of Justice (DOJ). These allegations encompass the misappropriation of customer deposits, including the purported embezzlement of said funds.
An indictment filed on the most recent Monday delineates that Bankman-Fried stands accused of diverting and embezzling customer deposits from the FTX platform. The illicitly obtained funds were purportedly channeled towards political campaign contributions, collectively amassing a substantial sum exceeding one hundred million dollars, in advance of the 2022 US midterm elections.
The indictment further posits that despite Bankman-Fried’s intimate knowledge of FTX’s fiscal insufficiencies, he continued to channel the purloined funds into personal investments, acquisitions, and political campaign contributions.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
The U.S. Securities and Exchange Commission (SEC) is taking significant steps towards pursuing an appeal in their recent legal battle against Ripple, indicating a potential shift in the course of the lawsuit.
James K. Filan, an experienced defense attorney specializing in crypto-related legal matters, has shed light on the latest developments. District Judge Analisa Torres has initiated a structured process for considering the SEC’s request to present an interlocutory appeal—a move that would allow the SEC to contest certain aspects of the ongoing case.
It’s important to note that this preliminary step does not guarantee the authorization of an interlocutory appeal; rather, it signifies that the SEC has been given the opportunity to formally request such an appeal.
Judge Torres has outlined the timeline for this process in her official order. The SEC is expected to file their motion for the appeal by August 18th. Subsequently, Ripple is given until September 1st to submit their opposition papers. If the SEC deems it necessary, they have until September 8th to file a reply.
The news of these developments had an immediate impact on the cryptocurrency market. Following the announcement of the judge’s order, the value of XRP experienced a sharp decline. The price, which had been trading at approximately $0.571, dropped to around $0.499 at the time of writing. This decrease of over 12% aligns with the broader trends observed across the cryptocurrency landscape.
The legal clash between the SEC and Ripple began when the regulatory agency filed a lawsuit against the San Francisco-based payments company in late 2020. The SEC alleged that Ripple had engaged in the sale of XRP without registering it as a security.
In a significant turn of events last month, Judge Torres issued a ruling that had mixed implications for both parties. She determined that Ripple’s automated programmatic sales of XRP, which occurred on the open market, could not be classified as securities offerings—a pivotal point of disagreement between the SEC and Ripple.
However, the judge did uphold a key aspect of the SEC’s argument. She agreed with the agency’s assertion that Ripple’s direct sales of XRP to institutional buyers indeed amounted to a securities offering, reinforcing the complexity of the case.
As the legal battle continues to unfold, the spotlight remains on the actions and responses of the SEC and Ripple, and how their ongoing dispute could shape the future regulatory landscape for cryptocurrencies and digital assets.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.