It is known that the mining process is controlled by many factors to determine whether the process is profitable or not and on top of it is the cost of the equipment used, the electricity consumed and the value of the metal coin, the process is very profitable if the value of the coin increases.
This is what happened with the bitcoin coin, which rose to its highest level in two months, with an estimated value above $ 8900, which made obsolete mining equipment become profitable again at least during the short period that precedes the date of the split of the bitcoin bonus and the rise of bitcoin to high levels.
According to the mining profitability index, which is tracked by both mining pools (PoolIn and F2Pool), older mining devices, such as “Bitmain's AntMiner S9” or “Canaan Avalon A851” can now generate a gross margin between 10% and 20% with an average cost Electricity is $ 0.05 per kilowatt hour.
For those who have adopted more efficient optimization methods and have updated their equipment, use of hardware and combined more than “Bitmain's AntMiner S9” simultaneously, the gross profit margin can increase up to 30% to 40% at the current bitcoin price.
The source said that the rainy season in China, which contributes about 70% of the total bitcoin mining capacity, brings hydroelectric power which leads to a decrease in electricity costs to 3 cents per kilowatt hour.
If the bitcoin price and mining difficulty remain constant, older generation mining models such as “Bitmain's AntMiner S9” can remain marginally profitable even after the half event.
For your information, the daily number of extracted Bitcoin is estimated at 1,800 Bitcoin units, which will drop to 900 units after the bonus split event.
Meanwhile, major machines for major manufacturers including Bitmain's Antminer S17 and S19 series as well as MicroBT's WhatsMiner M20 and M30 series can yield over 60% returns, even at an average of 5 cents per kWh.
Dmitry Ushakov, chief commercial officer of Russia-based BitRiver, said:
Today's price action will return even the miners who were recently excluded due to lower profitability.
After half we believe that the 3 to 4 cents price range is sufficient to continue mining profitably with the S9 mining, but if the current price movement continues.
After bitcoin prices crashed on March 12, the worst fall for bitcoin in seven years, a large group of older mining platforms had to move away from the network, resulting in a 16% lower competition and mining difficulty in late March.
Lower mining difficulty and a bitcoin price hike have helped return miners with outdated hardware and equipment.
As a result, the total bitcoin fragmentation rate has risen to an almost all-time high of 110 exahashes per second (EH / s) over the past few weeks.
Bitcoin has been stagnant at $ 7,000 for weeks, putting pressure on mining farms that rely on older models before the split event came.
However, bitcoin mining is a dynamically changing game.
Mining farm operators previously estimated that older models such as the S9 accounted for about 20% of total computing power for the Bitcoin network in March, a significant drop compared to last year because major players replaced these older models with more powerful new equipment during late 2019.
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