At the current value of Bitcoin, miners operate at a loss. Moreover, if the market situation does not change, May Halving will finally finish off enterprises that have not yet switched to upgraded equipment. This was in a conversation with Bloomberg said the head of the research department of the management company CoinShares Christopher Bendixen.
According to him, in order for mining to become profitable again, the price of Bitcoin must rise to at least $ 7400. Despite the fact that miners suffer losses, they will not leave the market, counting on a rally, this is confirmed by Blockchain.com data. If these expectations are not met, many of them will still have to leave, but not at will, they will simply go broke.
“Miners who have already upgraded their equipment will probably be all right. But enterprises that use devices of the previous generation are already experiencing difficulties, and halving them will completely finish them, ”said Bendixen.
The fact that after manning many problems will begin problems, they say for a long time. On May 14, the reward for each block mined in the Bitcoin network will be halved to 6.25 BTC. Artificial halving limits cryptocurrency emissions and restrains inflation.
Recall that this is not a unique event for the blockchain. Halving has already been carried out twice in the network of the largest cryptocurrency capitalization: in November 2012 and July 2016. May halving will also not be the last – the procedure is repeated every 4 years until the moment when the emission of cryptocurrency is completed. That is why Bitcoin is compared with gold – its “reserves” are limited.
Both times, Bitcoin rose in price, both during and after the event. However, this time the situation seems to be developing in a different scenario. A little more than 62 days are left until the reward is reduced, and Bitcoin, meanwhile, broke through the level of $ 4 thousand.
Sail Irwin, executive director of Greenidge Generation, a mining company, told reporters that for companies using devices of Antminer S9 level or lower, Bitcoin mining is only profitable when the cost of electricity is not higher than $ 0.04 per 1 kW / h.
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