Miners seem to be getting ready for the aftermath of the Bitcoin halving, one of the most anticipated crypto events of 2024, which is less than a month away. In April, there will likely be an event that halves the mining incentives on the Bitcoin network, making it less profitable to validate transactions.
Miners are getting 6.25 BTC right now for every verified block that is added to the network. Nevertheless, their revenue will be divided into 3.125 BTC per block due to the halving. The fact that many American miners are reportedly making changes, like purchasing more powerful mining machines, to guarantee their continued profitability is intriguing.
The majority of the mining rigs in operation in the US are S19 series, which include almost 600,000 of the equipment, according to crypto-mining services and logistics supplier Luxor Technology. Bloomberg said that nations in South America and Africa are the main recipients of the mining computers.
In nations like the US, where energy prices are rather high, it could not be cost-efficient to operate the S19 series, which are older generations of Bitcoin mining equipment. This explains why the country’s miners are replacing their antiquated computers with newer, more powerful models.
According to another prominent figure in the Bitcoin mining sector, the S19 series and related models “may still earn excellent revenues and obtain a longer life if hosted” in certain parts of Africa, even if they might not be cost-effective to run in the US.
At the same time, some miners choose to sell their gear, with purchasers in regions of the globe where electricity is inexpensive using the older rigs. Notable among these purchasers are those from Ethiopia, as well as those from Paraguay and Tanzania.
Luxor claims that customers have been more likely to acquire used mining equipment in anticipation of the forthcoming halving event. A few customers are holding off on buying older laptops until after the event, thinking their prices would go down even more, the business found out.
In the cryptocurrency and Bitcoin mining sectors, the Horn of Africa nation of Ethiopia is making a name for itself. The East African country is receiving a large number of the older US computers, as hinted at before.
One of the main reasons for this growth is Ethiopia’s affordable power. Power in Ethiopia costs about 3 cents per kilowatt-hour, according to a Bloomberg study, but in the United States it might cost anywhere from 3 to 6 cents.
Chinese cryptocurrency mining firms are stepping up their investments in Ethiopia, according to Bloomberg, which broke the news earlier in February. Some think China’s hard line on cryptocurrencies was a factor, but the businesses’ decision to relocate to Ethiopia likely had more to do with the country’s inexpensive electricity.
Also Read: The prime minister of Iceland talks about Bitcoin and BTC mining March 24, 2024
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