Mao Shixing, the co-founder and CEO of the world’s sixth biggest cryptocurrency mining pool F2Pool, has recently revealed he believes bitcoin’s halving is going to have “little impact” on the flagship cryptocurrency’s ecosystem.
While speaking to Chinese news outlet Jinse finance, he noted that bitcoin’s halving, expected to occur in 2020, won’t have a big impact as the community is already preparing for it. He was quoted as saying:
We mentally prepare ourselves for Bitcoin’s next halving, so the event is expected to have little impact on the Bitcoin ecosystem. In addition, the nanometer-size chips used to mine cryptocurrencies will increase the lifecycle of mining rigs and the investment model of the mining machine will be different then.
Bitcoin’s halving is set to reduce the flagship cryptocurrency’s inflation rate, as block rewards will drop from 12.5 BTC to 6.25 BTC. The event occurs every four years or 210,000 blocks on the cryptocurrency’s network, and is now expected by March 2020.
Some have claimed that since mining rewards will drop, it’ll take more resources to maintain the cryptocurrency’s network and less BTC are going to be created, the price is set to increase. Shixing’s words, translated by local news outlet 8BTC, revealed he’s taking a more cautious approach.
According to the CEO, “investment incomes from mining rigs will level out over time,” and the future of cryptocurrency mining will be based on home appliances that’ll be used for the purpose. This, he claimed, will lead to a “dramatic increase of bitcoin miners and players in the bitcoin ecosystem will see an explosive growth.”
Despite his approach, Shixing didn’t attempt to predict where bitcoin’s price will be at before or after the halving. He was then asked what miners could do to “turn adversity into opportunity.”
Responding, he noted last year’s cryptocurrency craze that saw most cryptos hit new all-time highs attracted new miners, which added their hashpower to the network. Now that BTC’s price is dropping, this will lead to a crisis, he said. As such, miners need to focus on surviving.
Miners need to control their own risks, and reduce the leverage. The critical thing is to survive. In the future, house appliances used to mine cryptocurrencies and mining equipment running on cloud computing and AI will be the directions for the space.
Earlier this year, as CryptoGlobe covered, F2Pool revealed the necessary crypto prices for its operations to remain profitable. At the time, it was revealed the cryptocurrency needed to stay above $4,420 for the Antminer S9 to keep making a profit.
Other machines, like the T9 and S7, are claimed to no longer be profitable. Over the past 3 months, 8BTC reports, F2Pool has been losing “millions of yuan” over the bear market. The pool, along with several other cryptocurrency miners, is likely mining at a loss hoping crypto prices come back up in the near future.
