• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Bet & win BTC
Breaking News: Ecommerce Giant Amazon To Launch NFT Initiative
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Bet & win BTC
Bitcoinist.com
No Result
View All Result
Breaking News: Ecommerce Giant Amazon To Launch NFT Initiative
Advertisement

Bitcoin Miners to Thrive Post Halving after Local Chinese Gov’t’s Surprising Move

Yashu Gola by Yashu Gola
3 years ago
in Bitcoin
0
Advertisement
  • Ya’an, a Chinese city that contributes 50 percent of the total hash power to the Bitcoin network, offers cheap electricity to miners right ahead of halving.
  • The mountainous region, while awaiting a rainy season, wants to give away its excess electricity to “support the implementation of blockchain industry development,” according to a public guidance document.
  • The move could prompt miners to continue operations despite lower rewards post halving.

Ya’an, a city in China’s Sichuan province, wants bitcoin miners’ assistance in burning its surplus energy. It could result in cheaper electricity for miners, which would reduce costs and expenses.

bitcoin, cryptocurrency, halving
China’s Ya’an city to offer discounted electricity tariffs to bitcoin miners ahead of halving | Source: cnLedger

The local government issued a public guidance notice that asked “blockchain companies” to set up their operations near plants that are overproducing electricity, noting that it would help Ya’an becoming “a dynamic mining hub.” The document further stated that miners would receive the excess power supply at cheaper rates.

Get 30 FREE SPINS at Punt Casino - NO DEPOSIT REQUIRED! Start Playing Now.

Turbulent Month in Mining Sector to See Alleviated Pressure

Ya’an’s note follows a turbulent month in the global bitcoin mining sector. The cryptocurrency’s surprising overnight crash in March 2020, which brought prices down 50 percent, squeezed the dollar-enabled profits earned by miners. That eventually forced some to shut down their rigs.

Mao Shixing, the co-founder of the biggest crypto mining pools, told LongHash that a $6,000-7,000 bitcoin posed the risk of closing down mining machines. At the same time, he said that cheaper electricity costs could save miners from going out of business.

“In view of the current market performance, what we must do is to optimize the electricity cost, as the lower the electricity cost is, the less the miners will be affected,” Mr. Shixing stated.

The Ya’an’s announcement promises to do just the same: reduce the energy tariffs that account for more than 90 percent of the overall mining operations costs. The move could lead Chinese miners to continue their rigs despite lower bitcoin prices, thereby running the operations without facing monetary losses.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Play Now!

The trend could continue even post halving. In May 2020, the bitcoin mining reward will get reduced from 1,800 BTC to 900 BTC. Top analysts predicted that lower reward profile could lead small miners to shut down their rugs. But with price rising and power tariffs going cheaper, most miners would remain profitable.

Bitcoin Accumulation Begins

As Ya’an prompts the local bitcoin mining industry to thrive with the government’s support, the cryptocurrency’s technical indicators are already suggesting the beginning of a new bull phase.

Hash Ribbons, which identifies miners’ accumulation/capitulation sentiment based on hash rate and difficulty readings, turned green last week. It proved that weak miners have already capitulated their bitcoin holdings – and that they should start accumulating the cryptocurrency.

“Miner Capitulation doesn’t happen often, on average just once a year,” said Charles Edwards, the creator of Hash Ribbons model, in his blog last year. “But it has occurred following each of the last two halvings. Suggesting we may see yet another wonderful buying opportunity again in mid-2020.”

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.

Yashu Gola

Yashu Gola

Globetrotter Yashu Gola has been working as a financial/crypto market journalist since 2013. He is an information technology graduate, a cryptography junkie, a filmmaking enthusiast, and an avid reader of Jon Erickson, Agatha Christie, JK Rowling, and Isaac Asimov.

Related Posts

50% of Bitcoin hashrate Controlled by Two Mining Pools

Data Shows 50% Of Bitcoin Hashrate Controlled By Two Mining Pools

2 hours ago
Institutional Bitcoin Buying Is a Positive Sign, Suggests Matrixport

Institutional Bitcoin Buying Is A Positive Sign, Suggests Matrixport

1 day ago
Bitcoin BTC

Inflation May Be In A Lull, What Does That Mean For Bitcoin?

2 days ago
Bitcoin Lightning Network POS Clover

Major Adoption News For Bitcoin: POS Giant Clover Starts Lightning Trial

2 days ago
Bitcoin

These Metrics Hint At Massive Bitcoin ‘Buying Opportunity’, Says Analyst

3 days ago
Bitcoin Whale

Bitcoin Exchange Whale Ratio Surges, What Does It Mean?

3 days ago
Please login to join discussion

Premium Partners

Premium Casino Partners

Top Casinos

BitStarz
BitStarz
Punt Casino
Punt Casino
mBit
mBit
Metaspins
Metaspins
1xBit
1xBit
Coinplay
Coinplay
K8
K8
Vegas Casino
Vegas Casino

Sportbooks

Coinplay
Coinplay

Press Releases

  • Is Aptos (APT), Solana (SOL), or Snowfall Protocol (SNW)...

    7 hours ago
  • Hector Network launches its NFT marketplace on Fantom...

    7 hours ago
  • Fantom (FTM) launches ecosystem vault to finance dApp...

    8 hours ago
  • Esports Driving the Advancement of Cryptocurrency in Sports...

    22 hours ago
  • Connecting the dots on $PAW. Is Ryoshi back?

    1 day ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2023 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Bet & win BTC

© 2022 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.