Amid the huge demand for Bitcoin, this is a big blessing for the miners. At least this is reflected in the level of profitability which has increased significantly since 18 October 2020, exceeding 6 August 2020.
Based on data from Bitinfocharts.com as of November 8, 2020, on October 18, 2020, the profitability level of Bitcoin mining was the lowest for the last 6 months, which was only US $0.0063 per day / TH per second.
The profitability rate of mining Bitcoin for the last 3 months.
But since that date, profitability peaked at US $0.157 per day / TH per second. The increase in Bitcoin miners' income, may also reflect the sell-off by the “new bitcoin supplier”, covering the previous losses.
The highest achievement for 6 months, ushered in similar levels in the second week of May 2020, a few weeks after the "flash crash", in March 2020.
The first and second highest Bitcoin mining profitability rates over the past year occurred on November 9, 2020 (US $ 0.196) and February 9, 2020 (US $0.184).
The profitability rate of mining Bitcoin for the last 1 year.
This means that the trend is still down and there is potential for fluctuations in miners' income in the next few days, as happened on May 13, 2020, to October 13, 2020.
Related to that, a similar statement was made by Robby, Director of Rekeningku.com. According to Robby, the correction will continue. After all, Miners can breathe easy with this strengthening of the Bitcoin price.
"Let's just wait for the miners to sell their Bitcoin, to cover their past losses, "said Robby. However, Robby dared to predict the price of Bitcoin could penetrate up to US18 thousand per BTC by the end of this year.
The increase does not appear to be in full harmony with the hash rate, which since 17 October 2020 is still under heavy pressure.
Observed tonight, November 8, 2020, hash rate increased slightly from 97.9489 Exahash per second, on average per day (27 October 2020), to 128.508 Exahash per second.
This level is still far from the previous level, namely the highest for the last 3 months, at 157.6 Exahash per second.
Hash rate reflects the number of miners integrating their mining tools into the Bitcoin network to verify and validate transactions.
Miner Migration
The weakening of the hash rate seems to be related to the news of the migration of a number of Bitcoin miners based in Sichuan, Western China.
As of October 27, 2020, Bitcoin miners, mostly in China (more than 64 percent globally), were reportedly in the process of migrating electricity sources from hydropower to diesel power (fuel oil).
Understandably, the hydropower plant from the river there is highly dependent on weather conditions. During the hot summer months, June-October, the volume of river water will increase, resulting in cheap electricity tariffs, especially in the southwestern provinces of Sichuan, Yunnan and Guizhou.
And conversely, ahead of the dry season and winter, electricity rates will be higher and relatively unstable.
This situation forced a large number of mine managers to move their mining facilities to other areas, such as in Xinjiang and Inner Mongolia.
As of 27 October 2020, PoolIn data predicts that as a result of this decrease in hash rate, the difficulty adjustment for the next Bitcoin mining, which occurs in about 5 days, will drop by 10 percent.
This migration process usually takes about a month, but Xinjiang is still facing a COVID-19 alert situation, so it is not certain how long it will take the migration to complete.
"A lot of miners are still on the road," said Mao Shixing, Founder of F2Pool.
In other countries on October 26, 2020. Bitcoin mining company from the US, Marathon Patent Group said it has ordered Bitcoin mining equipment from Bitmain.
Marathon ordered 10 thousand Ant miners S19 Pro. Deliveries will take place from January 2021 and complete in March 2021.
This means that Marathon will operate 10 thousand of these machines in the first quarter of 2021. This reflects the increasing market demand for Bitcoin, thus making Bitcoin mining managers more confident.
On paper, each Ant miner S19 Pro unit produces 110 TH per second of power. Despite its high performance, electricity consumption is still relatively low.