Bitcoin Mining to Spike as Chinese Hardware Manufactures Get Back in Business
In February 2020, Bitcoin mining difficulty lowered by 0.38%, and it may be partly a result of government quarantine against the coronavirus in China; hence the mining delays. Despite the decrease, the hash rate during the period posted strong performance and even hit an all-time high of 136 EH/s.
Miners expect the total network difficulty rate to bounce back by over 10% on March 10, as hardware delivery slowdown caused by the coronavirus outbreak abates. Since mid-February, the Chinese government recently loosened the nationwide quarantine to drive economic activities. Businesses are now operating, including the Bitcoin mining operators.
On February 10, Canaan started partial operations while Bitmain resumed mid-February activities. On the other hand, MicroBT published a notice on February 25, informing people that it continued its maintenance services.
What Miners are Upto
Miners are gradually receiving their long-awaited new rigs and are filling the gap by miners who sold off their old machines. As per Blockware Solution CEO Matt D’Souza, miners sold off their Antminer S9s or upgraded their electrical infrastructure for the next generation of equipment. D’Souza claims that about 60% to 70% of miners probably dumped their S9s before 2020.
Deployment of next-generation equipment can ramp up the overall network hash rate, which positively correlates to the difficulty rate. The next-generation machines offer double the hash rate of the previous ones. The majority of miners remained unaffected even if the Coronavirus outbreak caused a few mines to close down.