Blockstream’s Samson Mow Thinks 2020 Bitcoin Halving Will Not Help Bitmain’s Mining Recovery

A few days ago, Bitmain, the largest ASIC hardware manufacturer in the world, has called off its plans to go public with an IPO at the Hong Kong Stock Exchange.

The IPO was also the largest IPO related to the cryptocurrency industry. Now, the mining company is waiting for the next Bitcoin halving in 2020.

Could Bitcoin Halving Help Bitmain?

Samson Mow, the CSO at Blockstream, explained that Bitcoin halving will not help Bitmain if they keep operating in the market.

The reason that Samson Mow gives regarding Bitmain’s current situation is the fact that the machines they built are not competitive at all. In the last months, other companies started to produce very powerful and energy-efficient miners that outperform those created by Bitmain.

As Mow explains, the S15’s efficiency is 57 J/TH but at the time of the announcement, they boasted 42 J/TH. That means that the actual efficiency was 35% worse. As Mow explains, Bitmain would have to sell the S17 at a loss as they did with the S15.

Bitcoin is going to be experiencing a new halving as soon as May 2020. Bitcoin rewards for miners will fall from 12.5 BTC to 6.25 BTC every time they find a block.

This could eventually have a positive effect on Bitcoin and its price. If the demand for the most popular digital asset grows, its price could increase much faster than in the past.

It is also worth mentioning that Bitmain had a very difficult year in 2018 because of the bear trend in the crypto space. Due to this situation, the firm had to close two offices it had, one in the Netherlands and another one in Israel.

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