Will there be a massive shift in the mining industry after the halving?
The high-profile Bitcoin halving is only a few days away. Miners are looking forward to the arrival of a satisfactory market and the changes in the computing power of the entire network after the halving.
At present, many miners are discussing that the upcoming halving of Bitcoin block rewards may be extremely detrimental to them, but many industry analysts believe that the booming cryptocurrency mining industry in North America has the opportunity to make up for possible market vacancies .
Not only in North America, but also in European countries, France and Germany have also introduced favorable policies accordingly. Miners have become the main force to consume excess electricity. In the case of "negative electricity prices", mining does not need to pay electricity fees, and can also charge money back. However, "negative electricity prices" are actually the result of extremely unstable power resources. That said, it seems like a huge boon for miners who have been struggling with high electricity costs.
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Will there be a massive shift in the mining industry after the halving?
70% of the world's mining machines are located in China. The reason why China has gathered most of the world's computing power is mostly due to the low domestic cost. Compared with foreign policies, domestic policies are more direct.
In April of this year, the People's Government of Ya'an City, Sichuan Province issued a document clearly supporting mining during the high water season. The document states that “it is necessary to give full play to the advantages of Ya’an’s hydropower resources, form a win-win situation in which hydropower is fully consumed, and the blockchain industry develops in a healthy and orderly manner, and Ya’an will be built into an influential blockchain industry gathering place in the country.”
Compared with Europe's "negative electricity price" power resources are extremely unstable, domestic water is abundant, electricity is stable, and water volume is stable. It is expected that the abundant water this year will last for five months from the end of May to the end of October. 70% of the world's mining machines are in China, and 70% of China's mining machines are in Sichuan, where the hydropower resources rank first in the country.
This year's flood season coincides with the halving of Bitcoin. Many people believe that after the halving, mining costs will increase, and miners will be more sensitive to energy consumption, which will benefit the flood season. In fact, the sluggish market before the halving has already caused a large number of mining machines to be taken off the shelves, and it is expected that a wave of mining machines with low energy efficiency will be phased out after the halving.
For miners, whether mining can bring benefits is the most important factor in deciding whether to continue mining. But not only electricity prices, but also high management costs and operating costs are also a problem for miners.
As we all know, compared with foreign countries, domestic management fees and operating costs (labor costs) are much lower.
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After halving, the computing power of the entire network will drop by 20%
Affected by the reduction of mining costs, the computing power of the entire network tends to soar during the high water period. The reason is that there are many mining machines that are shut down due to the cost of electricity. Rebooting, and the soaring computing power of the entire network will lead to an increase in mining difficulty, which will directly affect the output of miners. Therefore, before the flood season comes, many miners will choose to expand the computing power scale of the mine.
Summarize
Summarize
Although there are attractive policies in foreign countries, there are too many uncontrollable factors. Miners need to have a stable mining environment while being able to control the mining machines. Compared with the current loose policies in China, the market is improving. Consider mining machines Exit may be redundant. After the halving, after a brief drop in the computing power of the entire network, more people will be optimistic about Bitcoin due to the scarcity of supply, and the computing power of the entire network will soon and slowly return to normal.
In short, the real "mining paradise" is China, and mining in China is the most cost-effective.
