“Halving will change the mining market” – Arseniy Grusha

CONTENT

  • Bitcoin halving will change approaches to cryptocurrency mining

  • China, USA, Canada, Russia and Kazakhstan will become leaders in this sector

  • Home mining will continue to be profitable

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Less than 10 days are left before the Bitcoin halving, and miners from all over the world are already preparing for the upcoming changes. According to the co-founder of the Wattum consulting company, which supports mining farms and reorganizes abandoned enterprises in America into mining farms, Arseniy Grusha, the division in two will significantly change the cryptocurrency mining market. What to expect for miners in the near future, he told in an exclusive interview for BeInCrypto.

– Arseny, there are only a few days left before the halving. How the mining market will change and will it change at all?

A.G.:  Indeed, halving Bitcoin halving cuts the number of new coins created and earned by miners in half. This happens approximately every four years and … More Bitcoin is an important event for the entire cryptocurrency world. To understand the magnitude of the importance, I will say that cutting in half will lead to a reduction in monetary terms of $ 9 million per day. This is billions of dollars a year. First of all, this will affect inflation. The coin should go up sharply in the next year or two.

How will this affect miners? Definitely, changes will take place. A decrease in the reward for mining blocks will lead to the fact that small miners will simply leave the market, since Bitcoin mining will simply become unprofitable for them. The competition between mining farms and pools will increase, and mining itself, as an industry, will cease to be domestic or amateur, but will become industrial.

This is a completely natural change. Take gold, for example. Several centuries ago, anyone could buy a piece of land, take a pickaxe and mine gold. But such gold miners were replaced by well-equipped enterprises – mines, which had at their disposal professional equipment and trained personnel. Naturally, such enterprises began to extract more gold, and most importantly, faster. Therefore, amateur gold miners left the market. The same will happen with cryptocurrencies after halving.

In addition, companies that use old equipment and are not ready to upgrade will leave the market. All hardware released before 2019 is no longer suitable for industrial mining. Most often it is sold to third world countries, and a new generation ASIC is installed. It’s like with cars. Developed countries buy new car brands and used cars are shipped to developing countries. So it is with mining. We sell old equipment to Venezuela, Russia, Kazakhstan and a number of other countries..

– Do you change equipment?

A.G.: Of course, we changed the equipment long ago. To be more precise, six months before mining, we completely changed all the equipment. Today we are using the latest miners from Bitmain, including Antminer s17 plus, Antminer s17 pro. Now we are buying miners Antminer s19. True, we had a hitch with the update, since a third of the goods received from Bitmain turned out to be broken or defective.

– What will happen to the retail mining market?

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A.G.: This is the real problem. The point is that every mining shrinks the retail market for mining. According to my calculations, the retail market worldwide does not exceed 10%. By retail in mining, I mean any miner who has 100-200 machines in operation, that is, where the volume of bitcoin production is low, but still there.

Therefore, retail mining is developing very rapidly in the United States. There is a lot of cheap money here. It is easy for people to enter this tens of millions of dollars business. But in the world as a whole, the situation is somewhat different..

– Will this lead to a monopoly in the mining market??

A.G.: The monopoly has long been established. 70% of all mining equipment is manufactured by one Bitmain company. It is likely that every chip, every microcircuit has its own means of control, and the press of one button by the Bitmain leadership will stop all the equipment in the world. It is possible!

– It turns out that home mining will die after halving?

A.G.: Not certainly in that way. For the CIS countries, and Russia in particular, home mining is still beneficial. First, the cost of electricity in Russia is much lower than in America or China. And these are certain advantages for miners. Even the use of 2-3 modern miners can bring up to $ 500 profit per month, which is a significant amount for remote regions of Russia. And that’s passive income.

I believe that if today there is an opportunity to put 2-3 miners somewhere in the garage or in the country, where you have cheap or free electricity, then be sure to use this.

For me, the history of mining was precisely about passive income. Cryptocurrency mining allows any resident of the world to install 1-2 miners and receive income from the mining of BTC. It’s just that the countries of the former USSR do not instill in people knowledge about passive income. In the minds of our parents, making money is a hand job in industrial plants. I personally would even hold a promotion to give every 50+ person the opportunity to try mining and earn their $ 500 without much effort.

– If we talk about global mining in general, then who owns the leadership and who will keep it?

A.G.: China takes the first place in the world in terms of cryptocurrency mining. And this is not surprising considering that all mining equipment is produced there. And the cost of the same chips, miners there is much lower. Mining farms buy equipment directly from factories, there are no problems with delivery, repair and maintenance. Therefore, mining is in great demand there, even among local residents..

Cryptocurrency provides a number of other advantages for the Chinese. In general, China’s policy restricts investment in other countries. For example, if you made money in China, it is very difficult to invest in some projects or banks in America or Europe. The government keeps finances domestically. Therefore, the use of cryptocurrency just opens up for the Chinese the possibility of international investment, additional income.

In second place after China in terms of mining are Canada and the United States. In general, the contact line between Canada and the United States is an ideal environment for mining. It is here that the cheapest electricity is, therefore, mining farms are located mainly here. But not only the price of electricity affects the development of mining in this zone..

Historically, large factories for the production of paper, coal processing or some other kind of production were located here. But the market is changing and humanity has begun to consume less of any product. Factories are forced to close, but buildings and all infrastructure remain. Therefore, investors have the opportunity to buy out such closed enterprises at a very cheap price and convert them into a mining farm. Last year, our company Wattum helped refurbish and launch five new mining farms.

Russia and Kazakhstan can take the third place in the world. These countries have a huge number of abandoned buildings and very cheap electricity. This is just a Mecca for mining enterprises. I would especially pay attention to Kazakhstan with its cheap electricity and the government’s attitude towards cryptocurrencies. I am sure that mining in Kazakhstan will develop very quickly.

– What will happen to the mining of alternative currencies? Will mining with mobile phones be popular??

A.G.: Let’s dig a little deeper into statistics. If we take the cryptocurrency market as 100%, then 60% is taken by bitcoin. If we talk about the mining market, then BTC takes 85%. The second popular coin for Ethereum mining. Ether mining takes about 10%. These are two cryptocurrencies that can be mined today. Bitcoin is mined on ASIC, ether using special video cards. And that’s it! I believe that mining on the phone or elsewhere will never work. At least in the near future. Deploying mining on a phone requires powerful processors, the support of millions of people. And this is not expected in the near future.

– Thanks for the conversation!

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