The coronavirus is still affecting the cryptocurrency mining. In the current two weeks, the modernization of the cryptocurrency mining equipment for the Chinese mining industry will be reduced. Mainly because of stagnation in mining activities due to the presence of coronavirus in China.
Effect of coronavirus on cryptocurrency mining
None of the coronavirus outbreaks are supporting Chinese authorities to win quarantine and other constraints. Cryptocurrency mining equipment manufacturers are forcing to suspend production. Then, they have to survive the equipment to the miners. Hence, miners easily expand and modernize their farms.
Bitcoins need to be able to use two weeks of alignment. Mainly because they need to estimate whether it is possible to calculate the current power on the bitcoin network. When more minerals connect to the network, the alertness increases, and threatening decrease. Jason Wu, DeFiner’s co-founder and CEO, commented on the cryptocurrency mining situation during coronavirus:
“Many miners have gradually phased out older equipment. They also bought new and more powerful models as we slowly approach the halves of the reward in May. The occurrence of coronavirus has contributed to the slow increase in the difficulty of extraction. “
Older models of cryptocurrency mining
During the current situation, miners are compelled to operate at older facilities. The good news is that the current Bitcoin price is still profitable. Co-founder and CEO of Bibox Cryptobourse, Aries Wang, said that most mining farms remain during China’s New Year. PandaMiner, a producer and operator of cryptocurrency mining farms, also said on the coronavirus situation:
“THE SLOW GROWTH OF MINING IS A GOOD REPORT FOR EXISTING MINERS. MINING IS LIKE AN ARMING PLANT. THE SLOW GROWTH OF MINING DIFFICULTY MEANS THAT THESE MINERS ARE LIKELY RECEIVING HIGHER RETURN FROM YOUR INVESTMENTS IN MINING. “
There will be less infrastructure at the site of highest incidence of coronavirus. Consequently, it will be insufficient the import of new equipment for cryptocurrency mining to remote areas. There, Bitcoin mining farms use hydropower. Until the situation in China is solved, there are still a few weeks ahead of expectations that poor mining farms will perform poorly.
Here you can read more about the financial market impact of the COVID-19 pandemic: https://en.wikipedia.org/wiki/Financial_market_impact_of_the_COVID-19_pandemic