Miners in China are bullish on the top cryptocurrency, Bitcoin [BTC], even while the “crypto-winter” dragged down the collective market from a high of over $800 billion to $105 billion in 2018.
With just over a year to go for the Bitcoin halving scheduled for May 2020, a group of Chinese miners are still hopeful that mining the digital asset will fetch them a profit. These miners restarted their operations after shutting-up-shop at the end of 2018, when the coin market underwent a dismal run.
Miners in China have even been increasing their holdings of the microchip Application-Specific Integrated Circuit or ASIC chips, in a bid to boost their mining hardware ahead of the halving.
Next year’s Bitcoin Halving will see the BTC inflation reduced by 50 percent, in line with the coin’s deflationary monetary policy.
For the miners, the rewards which currently sit at 12.5 Bitcoins per block mined, will also drop to 6.25 after the halving. However, this could lead to a BTC price bump based on the previous years’ halving data.
According to 8btc, Xu Feng, a miner from Anhui Province, a veteran in Bitcoin mining, stated that the prospects of mining BTC was very enticing and he planned to start operations very soon.
In light of the same, he said,“It is estimated that one million units were shut down during the dry season will open operations in Sichuan during the flood season.”
The dry season being referred to above is the bearish market, stagnating prices during the close of 2018 and the flood season is the bull-run that miners believe will arrive in 2019. Feng also referred to the Sichuan region, a haven for BTC miners, due to the relatively cheap costs of electricity and water.
Feng added that his mining team was already ramping up their mining equipment and building the necessary infrastructure to make sure that the farms were working efficiently prior to the mining storm.
Li Ping, another minor miner, and an owner of two farms with 5000 Antminers s9 stated,“There are a large number of miners who made their homes in Sichuan. They enjoyed the cost of water and electricity, and they caught up with the good market. They were rich in oil during a flood season. They don’t care about mechanical wear and transportation.”
China’s Bitcoin mining community is relieved after the market edged up, following last year’s bearish onslaught. During November 2018, when the onslaught was at its peak, miners were selling their mining equipment by the kilo to salvage something as the prices were falling to an all-time low.