- Manufacturing companies closed down amid Coronavirus fears have gradually reopened after the Chinese government loosened the quarantine restrictions.
- This is just as they prepare to roll out new equipment with cutting edge technology bracing for the BTC halving.
The Bitcoin mining difficulty rate is expected to go up significantly after a tough February that caused it to tank by up to 0.38%. The Bitcoin mining difficulty is roughly how much computing power is required to find a new block. This rate is adjusted after every fortnight.
Notably, despite the dip in mining difficulty, the hash rate has still performed well in the past week, posting an all-time high 136 EH/s towards the end of February.
Miners had already preordered rigs to prepare for halving
Miners have received a reprieve as they had pre-ordered new technology rigs in a bid to brace for halving set for May 2020. The two previous halvings that have occurred, resulted in an upward trend in the market. However, the rewards of miners per block are set to go down considerably from 12.5 BTC to a meager 6.25 BTC.
Most of the miners sold their older rigs
Some of the miners have either sold or upgraded their Antminer S9 and other old rigs as they awaited the new models that were stuck in warehouses due to a Coronavirus disruption. An estimated 60-70% of the miners have discarded their old rigs before 2020 as explained by Matt D'Souza a Blockchain Solution CEO.
The Chinese government has loosened the quarantine
Following the government loosening the quarantine most of the manufacturers have gradually resumed operations. MicroBT located in Shenzhen, the manufacturers of the Whatsminer stated that they have already resumed operations. Meanwhile, Bitmain also resumed its manufacturing and shipping operations as soon as they received a go-ahead from the Shenzhen municipality.
The two companies are now caught up in a standoff as they compete to roll out newer cutting edge crypto mining equipment, new machines with a higher energy efficiency ratio as the imminent halving of BTC is looming. On February 28th Bitmain rolled out their new rigs the Antminer S19 and S19 pro.