Major Chinese cryptocurrency miners are betting on increasing Bitcoin investments in the next six months which will help keep them in business after the May 12 halving.
The sentiment was found in a survey conducted by crypto services firm RockX on May 4, 2020. According to this survey, approximately 57% of the total Chinese cryptocurrency miners believed that a large influx of new investors was expected into the industry in the coming months. The reason for this sudden influx being the May 12 halving that will reduce the new supply of Bitcoin to half from 12.5 Bitcoin per 10-12 minutes to just 6.25 Bitcoin in the same amount of time.
According to RockX, 42 miners were officially contacted by the survey including some of the top miners operating within the country. They included Pandaminer, TokenInsight and F2Pool senior managers. 71% of the responders also believe that the market sentiment is positive and thus long-term price stability or even increase is warranted.
It is common knowledge within the crypto community that Chinese mining industry is perhaps the biggest in the world right now. Miners take advantage of cheap electricity prices from the Chinese national grid as well as loose practical restrictions from the government even though cryptocurrencies are officially banned in the country for trading and other general usage.
Regarding Future Hash Rate
Bitcoin’s future hash rate is subject to much debate these days because of the halving debacle. Due to the reduction in block reward, miners will see their rewards reduced by half and thus many might be feeling anxious right now. If nothing changes, many miners may feel the brunt and might be forced out of business.
According to the survey, a majority of the miners (57%), however have a different opinion and they believe that the total hash rate will remain the same after the halving, hovering around 90 EH/s and 130 EH/s. However, the Chinese miners are also seemingly clinging on to old mining tech as a majority also believes that a reasonably outdated miner like the Antminer S9 will still remain profitable in the near future.
What do you think about the future hash rate and how Bitcoin halving on May 12 will impact it?
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