China may be tough on Cryptocurrency trading; however, Bitcoin mining is seen to be a significant operation amongst Chinese cryptocurrency enthusiasts. In the last few months, BTC miners have been slowly fading off in China due to the bear markets, even going to the extreme of selling off their mining equipment by the kilos.
According to 8btc, a Chinese blockchain and crypto news source, miners in China have been stocking up on Application-Specific Integrated Circuit (ASIC) chips. The main reason cited is the anticipation of the Bitcoin halving which is expected in May 2020.
Current Bitcoin Mining Profitability
As of now, Bitcoin mining may have almost zero profits. However, as the halving gets closer, it is expected to rise dramatically.
Bitcoin’s halving is expected to reduce inflation by 50%, and according to past statistics, Bitcoin will rise in price. Currently, miners receive 12.5 Bitcoins per block mined, and this will further drop to 6.25 Bitcoins in the next halving.
Companies such as Bitmain has faced a severe turn of events due to the bear markets in Cryptocurrency, with significant downsizing and delays in their IPO. However, with things picking up, Bitmain may start to walk.
Chinese Bitcoin Miners Getting Creative
The Chinese Bitcoin miners are doing all they can to reduce the costs of mining. From negotiating the best rates of buying used mining equipment to making deals with hydroelectric plants and mining farms.
Hydroelectric plants are bound to gain excess electricity generated thanks to a heavy rainy season this year.
It’s pretty clear bull season is around the corner, and both Cryptocurrency investors and miners are getting ready. Mining equipment makers, on the other hand, will not profit as much as second-hand mining equipment are rising in demand.
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