Latest news with #BlockworksDigitalAssetsSummit
Forbes
01-04-2025
- Business
- Forbes
Bitcoin Mining Enters New Era As ASIC Competition Grows
Bitcoin mining machine (Photo by Valeria Mongelli) AFP via Getty Images Speaking at the Blockworks Digital Assets Summit on March 20, 2025, President Donald Trump pledged to make the United States 'The undisputed bitcoin superpower.' Yet, with mounting operational expenses and sluggish bitcoin prices, implementation is anything but easy. Bitcoin's hashrate continues to surge to all-time highs, underscoring the network's rapid expansion and the growing demand for computational power. Driving this evolution is a crucial, but frequently overlooked component of the ecosystem: application-specific integrated circuits, the purpose-built machines that power bitcoin mining. Hashrate isn't just a technical metric, it's a proxy for the health, security, and resilience of the Bitcoin network. But, the production of ASIC mining hardware has long been dominated by just two players: Bitmain and MicroBT. Since bitcoin's early days in 2009, when enthusiasts mined the cryptocurrency from personal computers, the mining industry has grown into a global, multi-billion-dollar enterprise. Over the years, companies like Bitmain and MicroBT have dominated the market, capitalizing on efficient manufacturing and access to chip foundries. However, as demand for computing power expands, especially with the rise of AI, new competitors such as Auradine, Braiins, and Block's Proto team are stepping in. This period marks a pivotal shift in the ASIC landscape, where innovation and efficiency are key to staying competitive. Particularly, each Bitcoin halving cycle fuels the need for next-generation mining technology. More companies are entering the bitcoin mining chip market, including Auradine, Braiins, and Block's Proto. Auradine and Block are based in the U.S., while Braiins operates in the Czech Republic. Together, they represent a new wave, making the bitcoin mining market more competitive. Auradine, founded in 2022 in Silicon Valley, recently launched its AH3880 miner. Designed for efficiency, stability, and AI integration, it features a closed-loop hydro cooling system that enhances energy use and longevity, positioning it as a strong competitor to existing market leaders. Its reliability and forward-looking design catch the attention of large-scale operators and data centers alike. Also founded in 2022 is Proto. Supported by Jack Dorsey's Block and partnering with Core Scientific, they take a distinctly open-source approach to Bitcoin mining. Proto's open ASIC platform supplies developers with chips, systems, and tools to create custom solutions. This effort aims to reduce entry barriers, encourage innovation, and decentralize control in a market long dominated by a handful of major players. Braiins, long known for its contributions to mining software, is now building its own ASIC hardware. The company aims to challenge that dynamic with a more decentralized, flexible design architecture. This next generation of mining hardware companies is also aligned with broader trends in the energy and infrastructure sectors. Riot Platforms, one of the largest bitcoin mining companies, CEO Jason Les, said at the Bitcoin for America Summit in March 2025, Les emphasized that miners can act as flexible energy consumers, helping balance grids and accelerate the development of power infrastructure for AI and data centers. Redefining the future of bitcoin mining isn't just about who builds the fastest machines, it's about creating a competitive ecosystem.
Forbes
25-03-2025
- Business
- Forbes
Bitcoin Miners Hit Breaking Point One Year After Halving
President Donald Trump vowed to make America "The undisputed Bitcoin superpower and the crypto capital of the world" at the Blockworks Digital Assets Summit on March 20th, 2025. The key profitability metric, Hashprice, which measures miners' daily earnings per petahash per second, has remained around $48/PH/s. This historically low hasprice coincides with a recent 1.4% increase in mining difficulty. Hashprice reflects how much revenue miners generate from their computational power and is influenced by Bitcoin's price, block rewards, transaction fees, and network difficulty. While a stable hashprice might appear reassuring, it hides a growing squeeze on miners from all sides: rising costs, decreasing rewards, and a hypercompetitive global landscape. The April 2024 Bitcoin halving slashed block rewards from 6.25 BTC to 3.125 BTC. While this event is designed to control Bitcoin's issuance and maintain scarcity, it also cut miner revenues in half overnight. Unlike previous halvings, this one came at a time when Bitcoin's price growth has stalled and transaction fees have dipped to historic lows, making up just 1.12% of miner rewards earlier this month. Older mining machines like the Antminer S19 XP and S19 Pro are now barely breaking even. Many miners are operating at a loss unless they have access to ultra-cheap energy. The global hashrate has recently dipped below 800 EH/s, down from over 840 EH/s earlier in March, as some miners unplug to cut losses. Some miners are turning to creative solutions, such as heat reuse, to create alternative lines of revenue. Europe based bitcoin company Braiins is pioneering 'hashrate heating,' where bitcoin mining machines are repurposed to warm homes and buildings. Tyler Stevens, author of Bitcoin Mining Heat Reuse, sees this as a powerful answer to mining's economic challenges. Stevens told Forbes, 'an interesting solution to the challenges that bitcoin miners face is a focus on reusing the heat energy that the machines exhaust.' He goes on to say, 'If they're used in applications where electric heat is the primary product, from home appliances to district heating, then the bitcoin earnings are simply a rebate on heating costs. Hashprice and other challenges are largely solved when you need the heat anyway.' Instead of being wasted, mining heat can be transformed into a useful product. Amid tightening margins, some countries are showcasing alternative paths. El Salvador, the first nation to adopt bitcoin as legal tender, has mined over 474 bitcoins, worth about $29 million, using geothermal energy from the Tecapa volcano since 2021. This volcano-powered operation is promoted as a sustainable model and contributes to the country's total bitcoin holdings, now valued at around $354 million. Similarly, in Pakistan, crypto industry leaders are pushing for regulatory clarity and investment in bitcoin mining. Bilal Bin Saqib, CEO of the Pakistan Crypto Council, proposed using excess national energy for bitcoin mining to stimulate economic growth. With flat revenues, rising hashrate, and new global players entering the scene, the Bitcoin mining industry is under mounting pressure. Hashprice may be holding steady, but beneath the surface, the landscape is shifting. For miners to survive, and thrive, they'll need to innovate, adapt, and explore every watt of opportunity.
Fox News
21-03-2025
- Business
- Fox News
This is how we protect US dollar dominance in the digital age
History will record Washington's embrace of digital assets this year as an inflection point for the next era of U.S. dollar dominance. Both the Trump administration and Congress are prioritizing an America First approach to the blockchain, ensuring we are the ones defining how these new digital assets are used, traded and created at home and abroad. Our opportunity now is to ensure that we shape this trend to serve American businesses and families. If the dollar is to be the currency of the digital age, then Washington must act to make that happen. The good news is that durable, bipartisan progress is emerging. The Senate Banking Committee just advanced first-of-its-kind legislation for one key part of the blockchain ecosystem – stablecoins – in a landslide 18-6 vote. The House appears ready to follow with its version. This congressional push reflects a shared national imperative for economic and technology competitiveness. Stablecoins are digital dollars that move securely, instantly and freely on blockchain networks. These are not cryptocurrencies like Bitcoin that have significant price volatility. Stablecoins are fully reserved assets, meaning their value is always pegged one-for-one with the U.S. dollar. Stablecoins are also a key tool in modernizing the dollar for the digital age by making all types of transactions cheaper, safer and more efficient. If regulated properly, they can cement the U.S. dollar as the most widely used currency for the fast-growing internet financial system – enshrining American economic strength for the next generation in the process. President Trump said as much at the Blockworks Digital Assets Summit, calling on Congress to pass "common-sense" legislation and affirming dollar-backed stablecoins will "unleash an explosion of economic growth, and … expand the dominance of the U.S. dollar." This shift in U.S. financial policy toward the blockchain may seem sudden, but it has been years in the making, dating back to when I served in the first Trump administration. And it reflects the structural trend of digitization that has already reshaped every sector aside from finance over the past few decades. As White House AI and crypto czar David Sacks explained, "Financial assets are destined to become digital like every other analog industry has become digital and we want that value creation to happen in the United States." The Office of the Comptroller of the Currency (OCC) recently reinforced this shift by announcing that national banks can issue and process stablecoins, marking a major step toward integrating these digital dollars into the traditional banking system. This move legitimizes stablecoins as a core component of the U.S. financial infrastructure and provides regulated institutions with clarity to operate in this market. Importantly, stablecoins can serve this role only if they are subject to clear federal rules about reserves, transparency, one-for-one redeemability – key features that inspire trust. Thankfully, the bills moving in both houses of Congress are promising. Any good law would ensure that consumers are shielded from tokens masquerading as payment stablecoins that do not adhere to U.S. rule of law and oversight. Stablecoin issuers should be required to publicly disclose their reserves and be open to independent audits to confirm those disclosures. And we should also ensure that American companies compete on a level playing field with offshore issuers and are incentivized to build and grow here in the U.S. The strength of the U.S. dollar is not just a matter of national pride – it has tangible benefits for American businesses and families. A dominant and stable dollar means lower borrowing costs for businesses and homeowners, as global demand for dollar-denominated assets helps keep interest rates lower. It also translates into dramatically more efficient point-of-sale for merchants, reducing costs for retailers and consumers. A strong dollar helps curb inflation by making imports more affordable, ensuring that American households retain more of their purchasing power. When the dollar remains the global standard, American workers and businesses benefit from easier access to capital and trade opportunities, reinforcing U.S. economic leadership. The effort to futureproof the U.S. dollar for the digital age is a rare issue that resonates across the political spectrum. For Republicans, it strengthens U.S. innovation and competitiveness against global adversaries. For Democrats, it represents an opportunity to modernize financial infrastructure, promote economic inclusion, and ensure strong consumer protections. Both sides recognize that a well-regulated stablecoin framework can reinforce the dollar's role in global finance while safeguarding economic security at home. Stablecoins are not just a technological breakthrough; they represent an evolution in the very fabric of global finance. If harnessed correctly, they will secure the dollar's preeminence for generations to come. With strategic vision and regulatory clarity, the U.S. can seize this opportunity and ensure that the dollar remains the anchor of the international monetary system in the digital age. This could be another legacy moment for President Donald Trump and congressional leaders.
