There has been a lot of skepticism concerning the Bitcoin mining space recently, with many people believing that a downturn in the asset of the price and a possibility of the asset becoming unprofitable to mine will affect the affinity that miners have for it. However, it would seem that the space has been able to hold its own pretty well for the time being. According to data from Blockchain, the Bitcoin hash rate currently stands at 94.7 million TH/s, a level which is definitely not bad on the whole.
Expected Surge is Keeping Miners in the Game
Of course, there are a lot of reasons for this occurring. One of these could just be general optimism; people believe that the asset can remain at a profitable level, meaning that they will be able to continue reaping profits and get even richer when Bitcoin moons. The reason for this optimism is not unfounded. If Bitcoin can survive the hell of 2018’s crypto winter and make a comeback, then it can weather this storm.
Miners are also conscious of the impending halving, where the block rewards gotten from mining are expected to be cut in half (this time, from 12.5 BTC to 6.25 BTC). The next halving is expected to come sometime in May 2020, and it is significant for two reasons; first, miners will be looking to ramp up their activities, thus being able to mine as much Bitcoin as they can before their window of profitability gets shut even more.
Also, the halving has historically been followed by a surge in the price of the asset. Expectations of this have incentivized more people towards mining the asset, as they believe that they could make a killing from it.
Bitcoin has also been doing pretty well in other areas, including and especially when it comes to activity on the network. Last week alone, the asset broke the record for the highest number of transfers conducted across the network in a single hour twice, moving $8.9 billion in the first instance and over $10 billion worth of the asset at the second go.
There has been talk about this being the activity of a Bitcoin whale who just wants to pump the asset’s value by creating an artificial activity for the purpose of making gains, but that’s irrelevant here. Whether or not this was the activity of a selfish whale, the fact remains that activity on the Bitcoin network is booming.
A Sharp Contrast to the Mining Institutions
The value of the Bitcoin token might be on the downturn (for now, anyway), but the network itself is healthy, and miners are putting themselves in a position to gain as soon as the price grows again.
Mining companies, however, aren’t doing so great. Canaan Creative, one of the largest mining companies in the world, fled an Initial Public Offering (IPO) last month, where it managed to raise just $90 million- over 75 percent less than it originally expected. Bitmain, another mining giant that is expected to file for an IPO soon, currently has a bit of a family feud, as its biggest shareholder Micree Ketuan Zhan was ousted from the company by his partner, Jihan Wu.