According to a study by the mining company Riot Blockchain, Bitcoin has shown a monthly growth of 147% in the average daily BTC execution rate. Specifically during February.
Riot explained that compared to the average Bitcoin daily production rate for December 2019, the growth has been very noticeable. This US-based company attributed the increase to the upgrade of its mining equipment.
This company stated that they would be mining Bitcoin before halving planned for a few months. Therefore, they announced that they planned to sell their cryptocurrency exchange. As a result, its shares fell more than 5%.
How was this achieved? With the improvement of the Riot mining facilities
For example, by the beginning of the month, it had 2,940 Bitmain S17 machines and 1,751 S9 machines, while at the end of the month, 4,000 S17 were running. With this, Bitcoin mining undoubtedly increased exponentially, just in time to prepare for the reduction of rewards by half planned for May this year.
At that time, Riot felt that the benefits of that investment were worth it. That is, the update would bring its operational hashrate added to approximately 248 petahashes per second. Therefore, we are talking about a 240% increase in the energy efficiency of the equipment compared to the mining hashrate they had.
What obstacles do you face to undermine Bitcoin in a pre-halving environment?
Alex de Vries, the founder of Digiconomist, said 98% of mining platforms will never verify a transaction, resulting in a huge and unproductive electricity expense.
De Vries stressed that the half-life of a machine dedicated to cryptocurrency mining like Bitcoin is a year and a half. This is due to innovations like the ones Bitmain has done recently with the Antminer S19.
However, the rest will continue to exist, and will work uselessly for a few years, “consuming energy and producing heat, and then they simply break down because they cannot be reused.”
Therefore, we can be sure that in the following months we will see two trends: that of those and miners who invest in better equipment to ensure better performance, and that of those who will put their machines to work on everything they give before May come.
There are already many people and institutions that care about this trend. Even a few months ago, a study from the University of New Mexico emerged that said “Mining a dollar in Bitcoin creates $ 0.49 in damage to the environment and health“.
Therefore, it is not surprising that in the following months we will see more reports and studies like this. Meanwhile, companies must manage to make their Bitcoin mining a more efficient and intelligent process.