Bitcoin Mining Sector Set For Recovery As China Loosens Coronavirus Quarantine

  • 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.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Lujan Odera
Lujan Odera
Lujan is a blockchain technology and cryptocurrency author and editor. He has worked in the field of cryptocurrencies and blockchain technology since 2015 helping him gain enough experience to be the writer he is today. He is known for his simple writing style that allows novices to understand the field in the simplest way.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,471FansLike
2,795FollowersFollow
4,197FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Insufficient Clarity for Regulations And Taxes May Force US Investors Move On: Coinbase Tax VP

The Chief Tax Officer of Coinbase, Lawrence Zlatkin, believes that lack of clarity in the US' crypto taxes could alienate prospective investors. He shared...

Chinese Ride-Hailing Unicorn, Didi Chuxing, to Pilot Digital Yuan; First Mass Scale Use of DCEP

China's 'Uber,' Didi Chuxing, will test run the digital yuan according to an announcement on July 8. The Chinese ride-hailing unicorn has over 500...

Kyber Network Makes DeFi Debut Following a Protocol Upgrade and KyberDAO Mainnet Launch

Kyber Network has launched a protocol upgrade dubbed 'Katalyst' alongside Kyber DAO on the Ethereum mainnet as per a blog post yesterday by the...

Stablecoins Yet Again Under Regulatory Scrutiny In Revised FATF Report: They’re “Better Placed To Achieve Mass-Adoption”

In a Tuesday report, the Financial Action Task Force, with members from about 200 countries, said stablecoins need to comply with standards to guard...

Chinese Shipping Giant, COSCO, to Use Alibaba Subsidiary Ant Financial's Blockchain for Maritime Logistics

Following a successful partnership between the shipping giant, Maersk, and IBM to set up an enterprise blockchain. Ant Group and COSCO become the...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today