Is This The Right Time To Turn On Your Bitcoin Miner? – – Daily Cryptocurrency and FX News

Is This The Right Time To Turn On Your Bitcoin Miner? – – Daily Cryptocurrency and FX News

Data shows that the opportunity in Bitcoin mining has never been better and the United States has the infrastructure to take that chance. In the past several weeks, the Bitcoin mining market has encountered a black swan event. That event has led to a lot of uncertainty and confusion clouding the future of the market.

That is the reason why market analysts believe it is right to give the general public a quick and accurate update and explanation why it is a great time for bitcoin mining in the US. In general, the bitcoin miners are rewarded with Bitcoin for securing the network and also for every block that they mine.

As more miners get in and participate, the difficulty rate increases, and the reward for every miner’s security contribution decreases and vice versa. When fewer miners are participating in this space, the difficulty rate drops, and the reward for every miner’s contribution surges. Understanding how this works is crucial for anyone to know why this is an exciting time to get into mining.

In recent weeks, we have seen a historic decrease in the difficulty rate and markets charts represent the initial and continuous effects of Chinese miners being compelled to shut down or relocate away from China.

There are many possible reasons why this happened, but the end result is that an exodus of the Chinese miners and their tools has started. As of July 2, this rate was adjusted by -27.94%. That was the fourth consecutive adjustment that happened, “with the difficulty rate almost halving since mid-May.”

Even with record-high BTC prices, we still expect extra rate decreases in the future. Nonetheless, the difficulty decrease was not yet over at that point, and with the extra drop of more than 27% in early July, it is expected that volatility is still coming as the network catches up to the effects of all these Chinese miners going offline.

These events have resulted in many dramatic and quick changes to the cryptocurrency mining market, but their effects can be traced to these major changes:

  • Equipment prices are falling fast and profitability appears to be increasing for the miners. It is possible that equipment prices will drop to all-time lows given the flood of equipment in the market, as mining profitability surges. As a result of all that, analysts estimate that mining profitability will surge by around 35% after the difficulty adjustment.
  • There is a shortage of dependable low-cost electricity mining locations and power infrastructure in the current market. Thus, there is just not an adequate infrastructure to absorb the demand coming from the Chinese miners.
  • The cheap power locations may take up to a year or more to negotiate, contract, and eventually develop. Given all these circumstances, the current operators have a distinct opportunity since they already have created resources and partnerships that they can use.

The last time that the difficulty rate was nearly 15 trillion was in January 2021, with BTC worth just $7,000 at the time. Today, the price of bitcoin is nearly $42,000 which is nearly six times higher. With the low-priced mining hardware and the high bitcoin price, the opportunity in BTC mining has never looked any better.

Currently, it is not about the mining equipment that you use, it is becoming more and more about infrastructure. All investors know that the best time to invest is when costs are majorly discounted. For bitcoin mining, it seems to be right now.

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