By year-end, mining Bitcoin will become a nightmare. How and why?

Yesterday, we wrote that on 29 July the General Hasrat network of Bitcoin has set a new record. To be more precise, the computational power of all miners in the world reached 79 million teruhisa hashes per second. The growth capacity and the Bitcoin prices brought production of the first cryptocurrency to a new level of competition and complexity. As expected, at the end of this year or around the second quarter of 2020, the situation may worsen, because the volume of the more modern and powerful mining equipment will increase significantly.

Market need more powerful miners

As in the Chinese Sichuan is now the rainy season and the cost of electricity dropped significantly, to mine bitcoins is much cheaper than buying already laminarnye directly. In addition, in the context of mining one of the major issues, of course, is the payback period of the investment.

Source: Criptonoticias

Take for example the well-known ASIC miner Antminer S17. While the average tariffs for electricity at 0.05 cents per kilowatt/hour (we are still talking about Sichuan), S17 is able to produce 0.00147854 BTC a day to spend when electricity 2.9 dollar. Taking into consideration the current value of Bitcoin, the net daily profit S17 taking into account the loss of electricity will be around 12.85 to the dollar. Roughly speaking, it will take 238 days to reach full cost recovery when buying Antminer S17 for 2735 dollars.

By the way, this period is much lower in some ASIC miners with lower hasraton. For instance, the S9 will come out on net profit after just 161 days. But this segment of the equipment refers to the more risky. If the price of BTC will fall, the owners of the first miners will be forced to suspend operations. Thus more expensive “ashiki” with high performance, though longer pay for itself, but give extra security. Many of these devices will not shut down even during a long recession and stagnation of cryptocracy in the past year.

Read also: 7 most unusual ways to mine Bitcoin What are they?

The obvious benefit of high-performance mining installations, as well as close to the end of the rainy season in Sichuan prompted the market to get rid of outdated models and replace them with new miners. Primarily this involved institutional mining farm in China, that is, the representatives of the traditional financial sector and business. Not so long ago we wrote that all of the popular equipment manufacturers for any mining company sold stocks. Now the nearest delivery new Asimov will have to wait until Nov-Dec.

Manufacturers of miners increase production

To meet the demand, manufacturers of Bitcoin miners are working hard to increase production capacity. According to a recent report 8BTC, Bitmain ordered from TSMC 30 thousand 7-nanometer semiconductor wafers to be used in the design of new ASIC miners.

7-nanometer chips used in the line of Antminer largest supplier of mining equipment, Bitmain: S17 53 terhesa, T17 40 of teruhisa and S17 Pro 56 teruhisa. In particular, for the production of S17 and S17 Pro is used for 144 such chip, as in model T17 fits 90 chips. According to industry analysts, a 12-inch plate at 7-ninemillimeter the process can be divided into 3000 chips. That is, of the ordered from TSMC 30 thousand plates can produce 90 million chips. End line get 625 thousand ASIC miners similar models Antminer S17.

Source: Bitcoinist

Pre-supply bundles of new miners is scheduled for late 2019 or 1-2 quarter of 2020. This will increase Hasrat network to 33 million terhesa, equivalent to 45 percent of the current total Hasrat network of Bitcoin.

What follows from this? Hasrat of Bitcoin could increase to almost half, which means the competition for each unit and the award will increase accordingly. Yes, the blockchain cryptocurrency is safer than ever, but the profit will have to fight even harder. Most likely, the smaller players will simply drop out of the race.

And in may we will halving — that is, reducing the rewards for the block of BTC. That is money from the mining will be even less. Hopefully, the course of bitcoin.

By the way, Bitmain is not the only manufacturer that builds power. Simultaneously with it are not less known in the industry producers of Canaan and MicroBT. According to insider reports, MicroBT in just a week sold out of nearly 36 thousand mining units M20S and has earned more than $ 100 million. A number of miners able to raise the overall Hasrat network at 2.44 million teruhisa or 3 percent. So, alas, will be even harder.

In cryptodata millionaires you will find a lot of other useful information. And don’t forget about our exciting page on the Zen.

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