If you classify your mining machine into different levels based on power consumption, how long can your mining machine last?

Original title: Bitcoin's halving could trigger a coup de grâce among miners

Relevant research has found that the Bitcoin mining network can be divided into eight levels based on electricity costs. As long as the miners in the first and second levels slack off, they are very likely to suffer a "fatal blow."

Author: Akash Girimath Translator: Shark

Source | AMBCrypto

Now, there are less than 46 days left until the Bitcoin block reward halving - and this time, it may be the most anticipated "halving" to date.

Why do I say so?

Because the environment this time is completely different from the previous "halvings". Due to the impact of the new coronavirus epidemic, Bitcoin and traditional financial markets have suffered unprecedented blows, and the status of miners has also been greatly affected.

There is no doubt that Bitcoin miners are the most important backbone of the crypto community. Without them, the network will not be able to operate normally. Generally speaking, when miners receive Bitcoin block rewards, they will sell them on the open market and use the cash to pay for mining costs and fees. However, in order to control the flow of Bitcoin into the market, Bitcoin will halve its block rewards every four years.

However, due to price fluctuations, Bitcoin miners sometimes make money and sometimes lose money when selling BTC. From this perspective, the price of Bitcoin plays a vital role in determining the health of the mining industry. So, with the latest block reward halving approaching, how will miners react when the price of Bitcoin drops? In fact, some industry insiders believe that Bitcoin miners have remained "strong" in recent times and have not wavered during the price drop.

But if the situation changes, some miners could suffer a fatal blow.

Bitcoin mining network tiered by electricity cost

Blockware Solutions, one of the largest Bitcoin mining machine distributors in North America, recently conducted a study that showed that the upcoming Bitcoin block reward halving event could become a "trigger" that could deal a fatal blow to miners. According to relevant research, the Bitcoin mining network can be divided into several tiers based on electricity costs, after all, electricity costs account for 95% of the costs borne by Bitcoin miners.

At this stage, most miners who pay lower electricity costs can still make a profit, and in this case, the demand for these miners to upgrade to new mining equipment is not high. However, miners who pay higher electricity costs have relatively low profits.

As shown in the table above, for miners in the first and second tiers, if they choose to upgrade their mining equipment to reduce production costs, based on the current proportion of mining with old equipment on the network, then this approach may not be very beneficial to them. "Next-generation mining equipment" such as Bitmain S17 Pro 50T can provide advantages for miners in the lower tiers, because these new mining equipment can not only bring more computing power, but also consume less electricity, and the competitive advantage is self-evident.

As Blockware Solutions puts it, “The computing power of one S17 Pro 50T miner is equivalent to deploying four S9 13.5 T miners.”

As new mining equipment comes on the market, the advantages of miners with low electricity costs in the past are gradually disappearing. Therefore, Blockware Solutions' final research conclusion is: after the halving, as long as the third to eighth level miners still use old mining machines, the first and second level miners will continue to maintain their competitive advantage; but if the third to eighth level miners use the "next generation of the latest mining equipment", then the first and second level miners will be forced to replace the new mining machines, and the upcoming block reward halving will accelerate the stimulation of this iteration.

In fact, as long as the miners at the first and second levels slack off, they are very likely to suffer a "fatal blow" because mining is closely related to the survival of miners, and the degree of competition is much more intense than other industries. (Original title: Bitcoin's halving could trigger a coup de grâce among miners)

<<: [BTC.com Firmware] The customized firmware of the mining pool S17 series is officially launched, and the net profit can be increased by 40%!

>>: IPFS Weekly Report: All the major events that happened recently are here!

If you classify your mining machine into different levels based on power consumption, how long can your mining machine last?

What kind of person would compromise?

【Filecoin Weekly Report-73】What inspiration will the official team's discussion on DeFi bring?

Physiognomy: Disgusting looks evil

How to know a woman's fate from her eyebrows

Is it suitable to switch to Bitcoin at this stage?

Which facial features indicate that you will be rich: Based on the shape of the nose

Financial giants wave their checkbooks to join the Bitcoin race

People with moles on their foreheads tend to be more promiscuous.

Is it good or bad to have a mole in the forehead wrinkles?

What kind of face makes women have the hardest life?

Recommend

What does a mole on the forehead mean? Is it good to have a mole on the forehead?

As Zhao Changpeng is about to be released from prison, will Binance turn the tide?

What does a black forehead indicate? What will happen if the forehead is black?

The facial features of people with bad tempers. Who has the worst temper?

How to manage your finances based on your palm shape

How is the fortune of a person with the Phoenix Eye Pattern?

Does a mole on a man’s face that kills his children mean he will have a good life?

Chongqing Silicon Source sues Shenzhen Century Cloud Core and the trial will be held on September 14

The face of a person who has a blackout every time he gets drunk has shallow eyebrows.

Analysis: Why did Wu Jihan sell the BTC.com mining pool? Who is the buyer 500.com?

What are the signs of a woman with good career and wealth?

What kind of face makes women have a miserable life?

Palmistry fate line analysis: what does the fate line mean

The face of a woman with high brow bones

Palmistry diagram: What does it mean when the wisdom line splits in the middle?