Bitcoin Mining Profitability Will Decline, But Maintaining Network Security is the Main Concern

With more than 87% of bitcoin mined, the miners’ revenue is expected to “decrease” yet again, said Chun Wang, the co-founder of F2Pool, the second oldest mining pool that has been in the market since 2013. It has its BTC servers in North America, Northern Europe, and Russia as well as in Asia including China, Hong Kong, and Singapore.

They have been working fully remote since the start of the COVID-19 crisis.

The profitability of the miners is yet again turned positive after inefficient miners were replaced by efficient ones and the price made some recovery. But Chun’s main concern still lies in the needs of miners to maintain bitcoin network security.

Bitcoin’s hash rate is currently recovering fast from its recent drop after the price crash, showing a clear upwards trend as we approach the halving.

From its lowest day in March, the hash rate of the bitcoin network has jumped 64%.

Source: Blockchain.com – 7 Day Average

However, besides the hash rate, the stability of the machine is another important aspect of an ASIC miner, said Johnny Yao, the Overseas Sales VP of Bitcoin miner manufacturer Canaan.

“One or two failures of a machine can make a big difference in miner ROI,” he said. And to keep the mining profitability, a miner chooses suitable new generation miners that can mine for the coming 1-2 years.

Opportunities to profit from arbitrage

Bitcoin halving is coming next month while its fork Bitcoin Cash (BCH) already had its halving last week that has Bitcoin capturing over 99% share of the SHA-256 hash rate.

Because BTC, BCH, and BSV all share the same hash function SHA-256, it is easy for miners to seamlessly switch between the assets and go with the one offering the most profitability.

With both BCH and BSV already having their halving last week and Bitcoin’s still about 24 days away, the flagship cryptocurrency is the best option.

According to Discus Fish, co-founder of F2Pool, “there will be short-term opportunities to profit from…

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