China’s Crypto Crackdown Makes Bitcoin Mining Easier, More Profitable

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Mining the flagship cryptocurrency Bitcoin has reportedly become easier and more profitable due to the ongoing crackdown on crypto mining farms in China.

More than half of the hashrate, or the processing power of the Bitcoin network, has fallen since the market peak in May due to the Chinese government mining restriction, but it could be beneficial for other crypto miners, according to one. CNBC report.

Kevin Zhang, vice president of cryptocurrency mining company Foundry, said that when a large number of Bitcoin miners go offline, the share of other miners in the network increases.

Bitcoin mining just got easier

He explained that mining becomes less difficult when the hashrate drops from the network. The hashrate that remains active also receives more for its proportional share of mining rewards.

All bitcoin miners share the same economy and operate the same network, so both public and private miners will see their incomes increase, Zhang said.

Assuming there is no change in electricity costs, Zhang estimates that the incomes of miners using the latest generation Bitmain miner are now $ 29 per day, compared to $ 22 per day before the change in global hashrate.

11) A 100TH S19s Daily Income:

April 17 ($ 60,000 / BTC) = $ 35 / day

Today ($ 33,000 / BTC) = $ 22 / day

Post-hard adjustment = $ 29 / day (assuming $ 33,000 / BTC)

So despite the #btcs price drop of almost 50%, this only represents a drop of just $ 6 / day in daily income or 17% since #btcs ATH in April.

– Kevin Zhang (@SinoCrypto) June 27, 2021

He added that although miners’ incomes fluctuate with the highest crypto price movement, mining incomes only declined by 17% from the April figures, when the price of Bitcoin hit. its all-time high above $ 63,000.

Miners could see more profit

According to Whit Gibbs, CEO and founder of mining service provider Bitcoin Compass, his company expects miners to be around 35% more profitable.

Darin Feinstein, founder and executive chairman of Blockcap, which operates one of the largest Bitcoin mining operations in North America, said shutting down Bitcoin mines in China would benefit miners in other regions.

We expect increased revenues and profits for the foreseeable future. This was an unexpected giveaway for the network, not only in terms of revenue, but also in terms of decentralization and sustainable energy measures.

Typically, over 90% of Bitcoin’s mining capacity in China could be shut down as governments ramp up the crackdown on cryptocurrency mining.

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