The current crackdown on Chinese cryptocurrency companies has led to a decrease in the hash rate or processing power of the bitcoin network since the market peak in May. This makes bitcoin mining easier and more profitable. According to a CNBC report, Cryptominer Foundry vice president Kevin Chang said that if a large number of bitcoin miners go offline, it could benefit other miners on the network and make them go skyrocketing.
With the current bitcoin mining profitability, he explained that bitcoin mining would be easier, and mining would reduce the network hashrate and also reduce the difficulty of mining. A constant hash rate gives a greater advantage to a proportional share of the mining bonus. “All bitcoin miners share the same economics and on a common network, so public and private miners face higher incomes,” Zhang said.
Assuming the energy costs are the same, Zhang estimates that miners using the latest generation of Bitcoin miners will earn between $22 and $29 a day before the global hashrate changes. He said miners’ earnings fluctuated as cryptocurrency prices rose, but mining earnings were down 17% from April, when bitcoin was worth more than 63,000. Witt Gibbs, CEO and Founder of Bitcoin Compass, a mining services provider, expects miners to generate 35% increase in profitability. He said closing China’s bitcoin mines would help miners in other regions.
This was an unexpected gift to the grid, not only in terms of revenue, but also in terms of decentralization and renewable energy. “Overall, more than 90% of China’s bitcoin mining capacity could be disrupted as part of the national crypto crackdown.