April 25, 2024

How will halving affect the profitability of bitcoin mining?

How will halving affect the profitability of bitcoin mining?

According to many analysts, Bitcoin breaking the $10,000 mark is the expected growth ahead ofhalving. After this event, the coin deficit will increase sharply and can strengthen its position as a powerful competitor to gold.

In the recent podcast “Tales of Cryptocurrency.”Hashr8OS co-founder and CEO Whit Gibbs spoke about the upcoming event and the role of mining equipment that is currently available on the market in it.

Today in mining pools around the worldASIC devices dominate; most miners select them. Gibbs emphasized that community dependence on ASICs further strengthened China's position as a mining center. Today, according to recent reports, the 5 largest mining pools are located outside this country.

How will halving affect the profitability of bitcoin mining?

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&#171;Now delivery of ASIC from China to any locationworld takes quite a long time. While Chinese miners can get them faster, so quickly that it is more profitable to sell them on the foreign market&#187;Gibbs added.

Asked about current ASICs, Gibbs replied that, as competition increases, the miners' life cycle will be reduced to two years.

&#171;I believe that from this moment the transition to a two-year life cycle with ASIC begins&#187;.

Speaking about the Bitcoin mining ecosystem and the consequences of halving, “the production costs of many people will double.”

&#171;After two past halvings, whichlimited rewards to miners, mining power (also known as hashrate) recently reached an all-time high. In other words, as Bitcoin's supply approached its limit of 21 million coins, the security of the network increased&#187;, Says the Coinbase blog.

How will halving affect the profitability of bitcoin mining?

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Gibbs also noted that it is more profitable for minershave access to low-cost energy than buying low-cost miners. According to him, soon "mining using Antminer S17 + will become less profitable, as it depends on the cost of electricity."

In addition, Gibbs believes that if miners can use secondary energy resources, then this will be a win-win solution in which money goes into the economy.

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