Bitcoin Mining Profitability Raises 35% As Displaced Chinese Miners Face Relocation Delays – Mining Bitcoin News

Analysts forecast an increase in the profitability of Bitcoin mining of around 35% in the short term. This would be the impact of the bitcoin mining crackdown in China. Since the crackdown, a significant portion of the hashrate coming from the Bitcoin network has disappeared. Displaced miners struggle to move and some may not even make it due to the intricate logistics of these operations. All of these reasons taken together can create a great time for new businesses to get into the mining realm.

Bitcoin mining profitability will increase in the short term

Due to the complex situation faced by miners in mainland China, Bitcoin’s mining profitability is expected to increase in the short term. According to Whit Gibbs, CEO and founder of Compass, this will continue in the short to medium term. Gibbs told CNBC:

We expect a phase of much higher mining profitability for Compass Mining customers. We assume miners are about 35% more profitable.

Compass is a Bitcoin mining company to launch its services this year after receiving $ 1.7 million in a seed round last February. The mining exodus is likely to benefit incipient vendors and businesses like you in the future. Other crypto analysts agree. Darin Feinstein, founder of Blockcap, a mining giant in North America, said:

We expect an increase in sales and profits in the foreseeable future. This was an unexpected gift to the network, not only in terms of revenue, but also in terms of decentralization and sustainable energy metrics.

Bitcoin was experiencing one of the biggest troubles in its history, bringing in more than 27% on one hit. This means that most miners will reap more rewards in the short term. This mechanism is implemented to keep Bitcoin operational when hash rate fluctuations occur like last month.

The mining exodus

Analysts and mining company employees estimate that this bonanza period could last up to 15 months. Mining Bitcoin is not an easy process, and the hardware required cannot simply be moved across borders. The logistics of moving a Bitcoin mining operation takes months or even years to develop. Some operations may not even move and may choose to exit the mining business for fear of retaliation in mainland China.

Such is the case with Liu Hongfei, a Chinese bitcoin mining operator. Hongfei told Reuters:

If the government doesn’t let me do it, I just have to stop.

While the situation is dramatic for established miners in the country, the Exodus opens up new opportunities for entrepreneurs around the world.

What do you think of increasing profitability in Bitcoin mining in the short term? Let us know in the comments section below.

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