Opinion: small miners will not survive the bitcoin halving

Many industry experts are confident that small-scale miners will either quit the game or willabsorbed more thanlarge and effective players after halving the awards for the mined block of bitcoin, which will take place on May 12. It is reported by The Block.

F2Pool co-founder and managing partner Wang Chun is convinced that due to the reduction of the award from 12.5 BTC to 6.25 BTC, only the most efficient miners using the economies of scale will remain in the industry.

“Ineffective mining operators risk being absorbed by more efficient players.”- said the representative of the second largest pool.

A similar opinion is shared by Poolin Vice President Alejandro de la Torre:

“It will be difficult for miners using old and energy-intensive equipment to stay afloat after halving. They will most likely be forced to disconnect. ”

Thus, experts agree that farms with new equipment and access to cheap electricity should not worry about halving.

Are miners ready?

“The enterprises I visited are equipped with new equipment. However, I went to the advanced European farms "- said de la Torre.

He stressed that many such companies have access to cheap electricity, which decisively affects the profitability of mining.

The head of New Mine, Ibrahim Alcourd, said that recently “several very large” mining companies have appeared in North America that pay less than $ 0.03 per kWh of electricity.

However, according to Alcourd, this state of affairs is far from characteristic of all miners - some simply observe the price in the hope that it will grow after the halving.

“Miners hoping that the BTC price will jump up after halving the block reward, making their activities profitable, are in trouble”- emphasized Alcard.

He added that the upcoming halving is unlikelywill cause a sharp rise in the price of bitcoin. According to Alcourd, historically the first cryptocurrency grew steadily after about a year and a half after the halving.

In turn, Wang Chun emphasized that it all depends on the cost of mining bitcoin:

“Given the current increase in mining complexity, it is likely that any farm capable of producing BTC will survive, spending less than $ 3,500.”

The industry will change its appearance

F2Pool co-founder added that he expects "greater consolidation of the mining industry" and sales of used cars in regions with cheaper electricity.

Alcourd, however, is concerned that halving will cause even greater concentration of capacities among large market participants, who clearly benefit from this event.

Alejandro de la Torre expressed the opinion that after halving, the mining industry will continue to develop, "becoming more professional."

“We will also see new players, new ways of financing mining enterprises, efficient farms”, - shared the forecast vice president of Poolin.

De la Torre previously stated the inevitability of a short-term reduction in hashrate as a result of a reduction in block rewards.

Recall, ForkLog launched a special project, in which we talk about everything you need to know about bitcoin mining.