Opinion: Small miners will not survive the bitcoin halving
The Block experts concluded that small miners may not survive the bitcoin halving. Due to lower rewards, owners of a small number of devices will be forced to stop production and go into standby mode. They can return to the industry only if the value of the main coin adds at least 40 percent.
The consequences of halving for small miners
F2Pool managing partner Wang Chun is confident that small-scale cryptocurrency miners can also be absorbed by large companies. This is especially true for enterprises located in China. Currently, China accounts for more than 60 percent of the Bitcoin blockchain nodes. The only positive thing in this case is that you can only mine the main cryptocurrency with relatively expensive equipment, as a result of which the distributed registry will not suffer much from the departure of small players.
“Mining operators that may be absorbed by other players in the future will have the opportunity to secede in the case of startups. Our pool is ready to accept small industry participants, but their income will decrease along with the rest. No company will invest in supporting the industry without return. Small miners who operate with a small set of equipment are likely to be forced to sell it, ”Chun said.
Are miners ready for hawling?
“In the US in recent years there have been many mining pools. I do not think that they would begin to function in the absence of certain prospects. Companies have definitely prepared for the crisis amid halving. The drawdown of the global economy has not yet hit the cryptocurrency industry. The correlation of Bitcoin and US stock markets has declined so much that the industry has virtually become independent. The strike for her will be a halving, which only loss of the cost of the main coin will allow to survive without losses, ”said the head of New Mine, Ibrahim Alkurd.
Wang Chun said that any farm will be able to survive halving, which consumes less than 3.5 thousand dollars for the extraction of one coin. Otherwise, the owner of the equipment or company will have to close. Even if we are talking about large pools, then in conditions of minimum income, they also risk closing.
The famous cryptocurrency specialist Alejandro de la Torre noted that the mining industry will become more professional after halving. The departure of the owners of a minimum number of devices will allow to take the industry to a new level and create a full-fledged community.
“We will be able to see new players who will be ready to make millions in investments in the industry. Perhaps Bitcoin decided to cleanse itself of users trying to earn a little money, ”said Torre.
All experts agree that miners will have difficulties only if Bitcoin does not rise in value by at least 30 percent within a few weeks. If the main asset breaks the barrier of 10 thousand dollars again, the miners will be able to survive the division of rewards.