Bitcoin News and Finance
Bitcoin Mining Profitability to Rise 35% While Ousted Chinese Miners Face Delays Relocating Skip to main content

Bitcoin Mining Profitability to Rise 35% While Ousted Chinese Miners Face Delays Relocating

profitability

Analysts are predicting a rise in Bitcoin mining profitability of about 35% during the short term. This would be the effect of the bitcoin mining crackdown in China. Since the crackdown happened, a significant portion of hashrate stemming from the Bitcoin network disappeared. Ousted miners are struggling to relocate, and some might not even make it due to the complicated logistics of these operations. All of these reasons combined can create a great time for new companies to enter the mining space.

Bitcoin Mining Profitability Will Rise In The Short Term

Bitcoin’s mining profitability is expected to rise in the short term due to the complex situation miners are facing in mainland China. According to Whit Gibbs, CEO, and founder of Compass, this will continue in the short to medium term. Gibbs told CNBC:

We are expecting a period of much higher mining profitability for Compass Mining clients. We expect miners to be approximately 35% more profitable.

Compass is a bitcoin mining company that started offering its services this year, after getting $1.7 million in a seed round last February. The mining exodus will likely benefit incipient providers and companies like them in the future. Other crypto analysts concur. Darin Feinstein, founder of Blockcap, a mining behemoth in North America, stated:

We are expecting a revenue and profit increase for the foreseeable future. This was an unexpected gift to the network, not just on revenues but on decentralization and sustainable energy metrics.

Bitcoin just experienced one of the biggest difficulty drops in its history shaving more than 27% in one hit. This means that most miners will reap more rewards in the short term. This mechanism is implemented to maintain Bitcoin operativity when facing hashrate fluctuations like the ones that happened last month.

The Mining Exodus

Analysts and mining company officers estimate this bonanza period could last up to 15 months. Mining bitcoin is not a straightforward process, and the hardware needed cannot be moved easily along borders. The logistics of relocating a Bitcoin mining operation need for months or even years to develop. Some operations might not even relocate and could choose to get out of the mining business due to fears of retaliation in mainland China.

This is the case of Liu Hongfei, a Chinese Bitcoin mining operator. Hongfei told Reuters:

If the government doesn’t allow it, I just have to quit.

While the situation is dramatic for established miners in the country, the exodus is opening new opportunities for entrepreneurs around the world.

What do you think about Bitcoin mining profitability rising in the short term? Tell us in the comments section below.

Labels:

Comments

Post a Comment

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl
Post a Comment
Read more

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju
Post a Comment
Read more

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and
Post a Comment
Read more

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r
Post a Comment
Read more
Blogarama - Blog Directory