Chinese miners are confident that crypto currencies provide a strong profit opportunity not only for mining even after Bitcoin suffered one of the most important falls in its history.
According to an article published by the Chinese portal 8BTC, after many miners cancelled their operations due to the heavy losses caused by the bearish streak, a group of miners have decided to restart their operations with very good expectations about the future of the crypto market.
One of those visionaries is Xu Feng, a miner from Ma’anshan, Anhui Province. The experienced investor with more than 5 years of activity in the mining business, commented that BTC is looking very attractive for the business at the moment, and that he expects to initiate operations with the flood season:
“It is estimated that one million units were shut down during the dry season will open operations in Sichuan during the flood season.”
Mining is Still a Profitable Business… Specially If You Live in Sichuan
Miners often choose the Sichuan region because of the low rates they have to pay for public services such as electricity, and water. The cost of electricity is one of the most important points to consider when calculating the ROI of a mining hardware.
So popular is the region for the miners that many made the decision to move there only to operate freely and easily in the region. So explained Li Ping, a “small” miner, owner of two farms with 5000 Antminers S9:
“There are a large number of miners who made their homes in Sichuan. They enjoyed the cost of water and electricity, and they caught up with the good market. They were rich in oil during a flood season. They don’t care about mechanical wear and transportation.”
The Halving Brings a Good Dose of Optimism
Mr. Xu explained that he is optimistic that the price of the BTC could rise dramatically after the halving scheduled for 2020.
“This year, I don’t expect to make money, and wait for next year’s output to be halved.”
Halving consists of a reduction in the reward that miners get for each produced block. By 2020 mining rewards will drop from 12.5 Bitcoins per block, to 6.25. This event could lead to an increase in prices if BTC follows the same behavior as previous halvings.
Xu comments that his team is already working on the construction and adaptation of the infrastructures that will serve to make these farms work. There are already a significant number of facilities ready, while others are still under construction.
However, another problem that keeps miners busy is the handling of equipment and the conditions under which each ASIC arrives at its destination. Xu explains that while maintenance can be easy, sometimes the equipment cannot be repaired only due to damages caused by careless handling