We are on the verge of a new Bitcoin ‘halving’, which occurs approximately every four years and sees the reward received by network participants halved. for each block mined. This could mean lower benefits for those who provide the infrastructure to verify transactions of the most popular decentralized digital currency on the planet.
Although we almost all know that there are many people who mine cryptocurrency from home with powerful graphics cards, there are also huge companies that develop this business on a large scale. Some even manage million-dollar balance sheets and are publicly traded. The ‘halving’ will somehow affect the companies that take action in the meantime.
Improve infrastructure to cushion the impact
Those committed to mining cryptocurrency professionally often set up large mining farms with equipment known as ASICs. These devices are specially designed. mining cryptocurrency. And this has huge advantages over more artisanal infrastructures. They have tremendous computing power, are easy to install, manage heat well, and are efficient.
But as in the hardware world in general, the emergence of new generations of ASICs is causing many of the currently working devices to become obsolete. Faced with this scenario and considering that the ‘halving’ is approaching, cryptocurrency mining companies began to update their infrastructure.
According to Bloomberg, several American companies need to increase their productivity to reduce the impact of the quadrennial event. This hardware update, which is already in progress in most cases, is a big deal for other players. There are responsible companies resell machines Which American professional miners have stopped using.
Since the mining economy largely depends on the price of electricity, the new target for these old machines on the US market are countries where the cost of electricity is significantly lower. We are faced with a reality where miners are trying to squeeze every penny to optimize their profits and every kilowatt-hour consumed matters.
A company called SunnySide Digital resells ASICs used on farms in America. Ethiopia, Tanzania, Paraguay and Uruguay. Luxor Technology, another company involved in this business, believes that approximately 600,000 mining equipment will soon be moved from the USA to countries in Africa and South America due to the ‘halving’.
How will the halving affect me if I have Bitcoin?
After reading this news, you may be wondering if the ‘halving’ will have any impact on your currencies if you own Bitcoin. The answer is: This event, planned to take place in April, will directly affect those involved in cryptocurrency mining. However, it should also be noted that this may also cause fluctuations in the BTC price.
Pictures | Lechenie Narcomani | C.G.C.
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Jason Root is a blockchain enthusiast and author at Div Bracket. He provides comprehensive coverage of the latest developments in the world of blockchain, offering readers a unique perspective on the industry and its potential for revolutionizing various industries.