Bitcoin Forum

Bitcoin Miners Are Investing Again, Expecting a Cheap Power Boom Soon

Bitcoin miners in China are buying used equipment and making deals with mining farms and hydroelectric plants, betting abundant water this summer will make their businesses profitable again.

That’s because during this season a significant amount of excess electricity is expected to be generated by hundreds of hydropower stations, especially in China’s mountainous southwestern provinces of Sichuan and Yunnan. This level of excess power results in competitive electricity costs for bitcoin miners, making it perhaps one of the rare opportunities to earn profits in the current bear market that has already impacted the mining sector.

Hashage, a company based in the city of Chengdu in Sichuan that operates six mining farms with a supply of about 200,000 slots for machines, for example, said the electricity cost in Sichuan during the summer – which may vary from hydropower plants – is usually around 0.25 yuan, or $0.037, per kilowatt hour (kWh) for hosting equipment for miners.

CDK | https://www.coindesk.com/bitcoin-miners-are-investing-again-expecting-a-cheap-power-boom-soon

Miners are the ones to watch, they will increase the difficulty levels to reduce the supply and that will hopefully prevent it going into freefall

I doubt they will increase the difficulty, unless a lot of new machines are being put to work, but that's unlikely at current levels. If you look at the current hashrate charts, you'll see that there are swings from sub 40eh/s to over 50eh/s, but around the time the difficulty resets, it's artificially being lowered to not have the difficulty eat up too much of their profits.

If the situation within the mining space was as rosy as news outlets are pointing out, we would see that reflect in the hashrate charts, but it isn't.

Seems like electricity are really cheap here. Tbh this behavior is easy to predict but how far the changes go is not really predictable. I don't really think they can get lots of profit as the cost to mine might also increase so the margin shouldn't be that great. All in all, it's fun to watch what's the results from this 'cheap power boom'.

Maybe they are trying to mine as much as they can before the bitcoin halving which is going to occur in 2020.
The cost of mining is stable and China's is one of the cheapest around the world, this is the reason why there are so many farms there. I am really interested to see the impact on the cryptocurrency market that this news might have because miners influence the market trends a lot.