During the flood season, miners are very active, and the abundant hydropower resources also make miners more confident to invest in mining. It seems that the halving of Bitcoin mining rewards has not had much impact on miners. It is not difficult to see the firm belief of Bitcoin miners in Bitcoin because the hash rate of the entire network has not decreased but increased after the halving.
Maintaining continuous high-speed computing for miners requires a lot of electricity, and mining farms need to find cheaper electricity to reduce costs. Generally, mining farms will contract hydropower stations to use abundant and cheap hydropower for mining. When the electricity price rises during the dry season in winter, the miners will move their miners to places with cheaper electricity prices, use the local cheap thermal power for mining, and then move back to the original mining site when the rainy season. Miners need to complete the miner's disassembly, construction, and site preparation in the shortest possible time.
We know that when miners enter the dry season, hydropower resources are no longer stable, which may significantly impact mining farms and magnify the impact of the halving.
What impact will the end of the flood season have on the mining industry?
The flood season generally has two characteristics: the oversupply of mining farms and the lack of production capacity of the latest generation of miners. In terms of mining farms, after the bull market in 2017, a large number of mining farms were built in 2018, 19, and 20. As a result, the location of the mining farms that can accommodate miners has increased, resulting in redundant locations for many miners in the mining farms. During the flood season, everyone has seen that significant mining farms have increased their investment in hosting. As a result, some of the managed electricity prices have even dropped below $0.03; on the other hand, the production capacity of miners is seriously insufficient, and futures have been sold for several months, which shows that miners are eager for miners.
However, the above two factors will continue into the dry season. Although many miners will be transferred from hydropower mining farms to thermal power mining farms, mining farms will still face the situation of insufficient custody. Affected by the electricity consumption policy, the impact of these two external factors may be more significant, resulting in some miners still in the wait-and-see stage.
Generally speaking, research before hosting is fundamental before choosing mining farm hosting. The following points are for your reference:
1) Choose a mining farm that is compliant and has low operating risk;
2) When choosing a mining farm, it is necessary to take into account the safety of the site and the convenience of transportation;
3) The price of electricity and the stability of electricity should be considered, and the decision should be made according to the situation of the miners;
4) Infrastructure such as mining farm network and temperature control;
5) The mining farm's scale, reputation, and operation and maintenance level.
It is difficult for new miners to have the ability to inspect systematically. Therefore, when choosing the operation and maintenance of mining farms, it is recommended that you choose a joint mining service provider with a long operating time, a large scale, and a good reputation. Then, after accumulating experience and forming system decision-making ability, consider finding a mining farm for hosting. You can refer to the article for mining farm selection: How do miners choose mining farms.
The crisis also brews new development opportunities. The superposition of the flood season and the Bitcoin halving means that the mining logic has undergone significant changes, and many new opportunities in the industry can no longer be considered from the original perspective.