Crypto Bear Market Caused Nearly 1 Million Bitcoin Mining ASICs in China to Hibernate but May Be Back Online Soon
The halving of Bitcoin is one of the most popular events that happens to this cryptocurrency. The Bitcoin reward for mining reduces on a schedule as the supply gets smaller and smaller. Though the reward is presently at 12.5 BTC for each block, it will reduce to 6.25 BTC at the next halving.
However, miners in China believe that there is a profit opportunity, despite the drop that Bitcoin has recently experienced.
8BTC recently published an article following the cancellation of multiple mining operations, considering how substantial the losses in the market during the bearish trend. However, there is a group of miners that have reason to believe that restarting operations could bring them something good.
Xu Feng, one of the miners in this group, has worked in the industry for over 5 years, and says that BTC offers a great opportunity for business right now, and he sees a future in the flood season. He added that estimates say that 1 million units were shut down during this crypto winter, and the group plans to open the equivalent amount in Sichuan when the cryptocurrency thrives.
Many miners choose this region to mine in because it has a low rate for public services like electricity and water. Considering the high energy needs of many mining devices, affordable electricity is a must.
This is exactly why one miner, Li Ping, chose to host his two farms with 5000 Antminers S9 in the area. Ping says that there are many people that moved their homes to Sichuan for the water and electricity costs, without any concern for mechanical wear and transportation.
Xu believes that the halving in 2020 will come with a massive upswing in the price of BTC. Though he is clear about not expecting to make much money this year, he appears to be waiting for next year’s success.
Right now, Xu has said that his team is working towards creating the infrastructures necessary to have profitable mining farms. Though there are some already prepared and ready, others are still under development.