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Turn on your Bitcoin miner if you own one

There is a huge opportunity in Bitcoin mining, and the U.S. infrastructure has everything you need to make it happen.

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Turn on your Bitcoin miner if you own one

In the last few weeks, the Bitcoin (BTC) mining market has experienced a black swan event, leading to a lot of uncertainty and confusion surrounding the future of the market. It's a great time to be Bitcoin mining in America, and I thought it was right that I give the public an update.

Bitcoin miners get rewarded Bitcoin for their security contributions and each block they mine. The difficulty rate rises as more miners join, and the reward for each miner's security contributions decreases. In reverse, when there are fewer participants, the difficulty rate drops and the reward for each miner’s contribution rises. This is why it is a great time to start mining.

Recent history has seen a significant decrease in difficulty rates. This chart illustrates the impact of Chinese miners having to close down and leave China.

Although there are many reasons this could have happened, the end result is that there has been an exodus from China of Chinese miners as well as their equipment. As of July 2, the rate was adjusted by -27.94 percent. It was the fourth negative adjustment that happened in a row, "with the difficulty rate almost halving since mid-May."

Let's look at the latest block time intervals.

Despite record-high Bitcoin prices we still anticipate further rate drops in the near future.

The difficulty drop wasn't complete at this point. With the additional drop of 27% in July, volatility continues to build as the network adjusts to the impact of all the miners going offline. Although these events have had a dramatic impact on the crypto mining market quickly, there are three main changes that they have caused.

  • The market lacks low-cost locations for electricity mining and infrastructure. The infrastructure is simply insufficient to meet the demands of Chinese miners.
  • Equipment prices are falling fast, while profitability for miners is rising. Given the flood of equipment, we expect equipment prices to fall to an all-time low while mining profitability will soar. We predict that mining profitability will rise by 35% following the difficulty adjustment.
  • It can take up to a year to find, contract, and develop cheap power locations. Because of this, existing operators have an advantage because they have the resources and relationships that they can use.

The January 2020 difficulty rate was approximately 15 trillion. Bitcoin was worth $7,000. The current price of Bitcoin is $32,000. This is more than four times the cost of bitcoin. The opportunity to mine Bitcoins has never been better with low-priced hardware and high Bitcoin prices. It's not all about the mining equipment; it's about the infrastructure.

All investors know that the best time to invest in investment is when costs are greatly discounted. This is the right time to mine Bitcoins.

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lxbfYeaa 2 ay ago

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