Bitcoin has just gone through a much-hyped adjustment that reduced the rate at which new coins are created.
However, the halving is fatal for miners. As far as real-time income is concerned, under the condition that the computing power and difficulty of the whole network remain unchanged, miners’ profit will get half-cut.
In fact, it’s not just bitcoin miners, the whole bitcoin mining industry chain, such as mining pool, mining farm, mining machine manufacturer, and mining machine sales, is bound to suffer a setback.
On the eve of halving, how do miners deal with the coming days? Some fled, some realized their hedging in advance, and others were still busy attracting investment. While those crypto exchanges standing at the top of the pyramid are making a great fortune.
“The trading volume of OKEx has returned to the normal level, which keeps a steady upward trend in the past two months.”
Xu Kun, CSO of OKEx, a major crypto exchange in China announced in an online activity. During the four-year halving carnival, the power center of bitcoin has quietly relocated.
A dealer of mining machines said that a second-hand mining machine only has a profit of 20 Chinese yuan. If something went wrong, it would be troublesome. Now some dealers have to change their business.
Interestingly, when the miners left, the network hashrate was still soaring, which has more than tripled since 2019.
According to Tokenview’s data, on May 11, bitcoin network hashrate rose from 122 EH/s to 145 EH/s, up 23 EH/s.
One of the reasons behind the surge in bitcoin network hashrate is the iteration of mining machines, as well as the new large-load mining farms, are being completed in succession.
The main purpose of these new mining farms is to gamble the halving bull. Those mining farms were basically ready at the end of last year.
It will take at least three to five months from preparation to power on. Now, these newly completed mining farms are confronted with the awkward situation of no coins to mine.
According to incomplete statistics, a load of hydropower station last year in southwest China was 7 million, and it increased by 3 million this year. About a quarter of them have not yet been invested.
In order to pursue high profits, more and more crypto investors enter the futures market.
“The biggest selling pressure on bitcoin will soon come from the exchange, where they will sell the bitcoin transaction fee they collect to convert it into fiat money. While futures exchanges bring liquidity to markets, offer useful hedging for legitimate use cases, they will be the largest bearish pressure on Bitcoin from here on in.”
Said Willy woo, co-founder of Hypersheet. He estimates the daily income of the miners will be reduced from 1800 bitcoins to 900 bitcoins, while the daily fee income of the exchange will be 1200 bitcoins.