Hello,
Welcome to a new edition of Terahash Solutions' newsletter!
We are all witnessing the market plummeting since a few weeks after Bitcoin reached its ATH at $72,000.
Let's dive right away into this bite-size newsletter, we hope you are ready to rack your minds!
The hot news: CZ sentenced to 4 months in prison
Changpeng Zhao, the former CEO of Binance, has been sentenced to four months in prison. Prior to his sentencing, he made an emotional plea, asking for forgiveness and a second chance. He admitted his mistakes and assured that he would not repeat his actions.
CZ emphasized that he had requested to implement stricter controls at Binance and had taken responsibility for his actions in hopes of resolving the matter and starting afresh. US prosecutors described Zhao as a blatant offender who allowed Binance to process transactions related to illicit activities.
Despite prosecutors' requests for a harsher sentence, the judge acknowledged that there was no evidence that Zhao was aware of illicit activities on the exchange.
Crypto mining market
Today, Bitcoin's value dropped to $56,000 due to concerns about regulations, and the hash price hit an ATL. Initially, after the halving, transaction fees increased, but then the hash price declined to around $53 per petahash per day. The average hash rate over the past seven days has been fluctuating below 650 exahashes per second, leading to some miners shutting down their operations. Consequently, the mining difficulty might slightly decrease from its recent peak.
The major concern came from the Biden administration's Department of Justice encroaching on privacy matters. The creators of Samouri Wallet faced charges of money laundering and unlicensed money transmitting for providing coinjoin services that enhance privacy. Despite not handling any funds directly, this raises questions about the requirements for money transmitter licenses.
Bitcoin's recent volatility, now trading around $56,000, poses challenges for miners following the halving event. Despite the price drop from its March peak, miners have yet to capitulate, opting to hold onto assets in anticipation of a potential recovery.
Analysts also anticipate a recovery, citing historical price patterns post-halving. However, warnings of potential havoc for miners if prices remain below operational costs, which currently stand at $77,400 per BTC mined. This could lead to a surge in Bitcoin's price, cessation of mining operations by 15% of miners, or sustained high transaction fees.
The market's focus now shifts to the $57,000 support level; a break could trigger miner sales, signaling capitulation.
Russia's crypto ban
Russia's legislators are considering a ban on cryptocurrencies, similar to China's, effective September 1. The ban targets crypto circulation but exempts some digital assets issued within Russia.
Divergent views exist among lawmakers, with the Central Bank advocating for a strict approach, while some ministries prefer moderate regulation. The proposed legislation offers concessions for miners and mining pools supervised by the Central Bank.
This move aligns with efforts to establish clearer guidelines for crypto transactions, following international standards set by organizations like FATF.
Russia's consideration of a ban isn't new, as the Central Bank proposed it to Putin's administration in January 2022, citing risks to financial stability.
Despite restrictive laws, Russia has become a significant hub for Bitcoin mining, driven by factors like cheap energy. However, adopting strict measures could trigger market turmoil given Russia's role in global mining.
The CRAZY news
In a remarkable feat, a solo Bitcoin miner earned a staggering $218,544 reward by solving block 841286. This makes them the 282nd solo miner in Bitcoin history to achieve such success across more than 841,000 blocks.
Lead developer Con Kolivas of mining software provider CKpool revealed that the miner contributed an average of 12 petahashes per second, representing about 0.02% of the network's total hash rate. Their odds of beating all mining pools and miners were a mere 0.02% or approximately 1 in 5,000.
Kolivas suggested that the miner may have recently switched from pooled mining post-halving or intermittently engaged in solo mining with large hash rates.
Solo mining is exceptionally challenging due to factors like competing against the entire network's hash rate and difficulty level. Most miners today join mining pools to enhance their chances of earning rewards. However, solo mining relies on luck and offers unpredictable rewards compared to pool mining's stability.
This significant solo mining success marks a rare occurrence since the last Bitcoin halving, underscoring the challenges and uncertainties associated with solo mining in the current mining landscape.
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From Terahash Solutions,
Thank you for joining us on this journey. Until next time, happy mining and stay tuned for more updates!