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Production Costs To Double for Miners Following the Halving

Production Costs To Double for Miners Following the Halving
  • The surge to the $10,000 mark by bitcoin has been said by many crypto commentators to be the bull run before the halving in May. 
  • With the bitcoin halving occurring in 2020, the scarcity of the leading cryptocurrency is going to increase quite significantly.

The surge to the $10,000 mark by bitcoin has been said by many crypto commentators to be the last bull run before the halving in May. With the bitcoin halving occurring in 2020, the scarcity of the leading cryptocurrency is going to increase quite significantly. It could even solidify its position as a significant competitor to gold. Going off a recent podcast, the co-founder and CEO of Hashr8OS, Whit Gibbs talked on the upcoming halving event to take place in May and the role of dedicated mining hardware currently in the industry.

In regards to such hardware, today ASICs are taking over the mining pools around the world and are a go-to choice for the majority of miners. Gibbs went on to note how the community very much relies on ASICs which has had a significant impact on strengthening the Chinese position as a mining hub as such. In fact, looking today at the statistics, the five largest mining pools are based out of China according to a new news report. 

He added:

“Right now, because of the logistics of it all, to get  ASICs from China to anywhere else in the world, takes quite a long time. Whereas the Chinese miners can get them quickly, so quickly, in fact, that they can actually buy them mine profitably and then sell them to the western world.”

In regards to the current ASIC miners in use, Gibbs went on to highlight the cycle of miners is likely to decrease as his competition goes up. He said, “I think that we’re looking at more of a two-year life cycle from here on with ASICs.” 

When talking about the bitcoin mining ecosystem, he said:

“When that reward gets cut in half, you’ve got to think that a lot of people’s production costs are going to double.”

It will be interesting to see how this plays out. For more news on this and other crypto updates, keep it with CryptoDaily!

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