Countdown to halving of mining rewards, what impact will it have on miners?

The digital currency (BTC) will undergo its fourth halving, which happens every four years. The impact of this event is significant, as past halvings have affected mining economics and market transactions.

Currently, 12.5 new BTC are created per block, with an average of 144 blocks per day. The reduction in production means that each block is halved to 6.25, and the block rewards obtained by miners are significantly reduced. Some people expect that after the halving in 2020, the halving will bring a new period of growth.

Block reduction schedule

The first halving of digital currency occurred on November 28, 2012, at block height 210000, which was reported by the mining pool SlushPool. The block reward was halved from 50btc of the previous block 209999 to 25btc. At that time, some miners tried to keep the reward at 50btc by continuing their own node mining.

The second digital currency halving

The second halving of Bitcoin occurred on July 9, 2016, at block height 420,000, which was mined by the first domestic mining pool F2pool. The block reward was halved from 25 BTC in the previous block 419,999 to 12.5 BTC.

The third digital currency halving

The third halving of the digital currency is expected to occur around May 22, 2020, when the block height is 630,000. At that time, the block reward for Bitcoin mining will be halved from 12.5 BTC to 6.25 BTC. The daily output of Bitcoin will also drop from 1,800 BTC to 900 BTC.

The production of digital currency is reduced every four years. So the next block reduction will be in 2020, which is less than a year away. The block reward is halved, which means the mining reward is reduced. Before the block reduction, according to the current currency price, whether you have a new mining machine or a second-hand mining machine, the mining return is good.

Mining with new and old mining machines is profitable

According to online data, the top 10 SHA-256 miners and their daily profits in 2019. These miners are Asicminer Pro with a hashrate of 76TH/s, Antminer S17 with a hashrate of 56TH/s, Innosilicon T3 with a hashrate of 52TH/s and Bitfury Tardis with a hashrate of 80TH/s.

If the miners' electricity cost is $0.04 per kilowatt-hour, miners using new mining machines can earn $15-21 per day. With the arrival of the rainy season, the electricity cost in Sichuan may be as low as 0.08 yuan ($0.01), which means that a mining farm with high-performance mining machines can bring more than $25 in profits to each miner every day.

Top 10 SHA-256 miners and their daily profits in 2019. The set rate for the picture shown is $0.10 per kWh.

In addition to new machines, mining with second-hand mining machines is also profitable. If mining is carried out in the Middle East, because of the ultra-low electricity costs there, the profits of these second-hand mining machines will far exceed two-thirds of the global average.

As the price of the coin rises, even older models of mining machines are profitable. The set rate for the picture shown is $0.10 per kWh.

There is less than a year left before the block reward is released. After the production reduction, the difficulty of mining will increase and the reward will be halved. According to today's market conditions, whether you choose new or old mining machines from brands such as Avalon, Ant or Ebang, you can get a good return. Mining income depends on the price of coins, mining machine computing power, block rewards, electricity costs, etc. RHY Mine has mining machines from major brands, new mining machines and second-hand mining machines for you to choose from, helping you to earn more digital currencies before the block production reduction.