Rain wont' bring mining to China this year
Rain season is coming to China. It is considered a time of heightened activity of Chinese Bitcoin miners. Rains generate a lot of hydropower and drive the energy costs down.
However, this year mining facilities seem to be less active than usually. The farms are not buying as much equipment, instead focusing their attention on finding enough buyers to fill their existing capacity.
The lackluster orders are turning into an even bigger problem since BTC currently remains stagnant around the US$7000. The situation is developing less than 20 days before Bitcoin halving, which makes most traders uneasy.
Now miners have to decide whether to enhance their tech arsenal or cut their losses and temporarily switch off some of their equipment. The preferable strategy might become clear only after the halving. If the prices will not go up then, the mining equipment market will likely suffer further losses.
After slumping 16% in March, the overall average computing power of Bitcoin has since recovered and reached 113 million terahashes per second.
According to the research by CoinShares, Chinese mining accounts for about 65% of Bitcoin’s overall computing power. The southwestern Sichuan province, that enjoys especially low energy prices, contributes more than 50% of the network’s total.