Rolf Versluis, the founding father of Horizen, a privacy-enabled sidechain platform cryptocurrency, has introduced that he’ll quickly shut his 2.1 MW Bitcoin mining facility.
Versluis, who has been mining Bitcoin since 2016, defined his determination in his article sharing the round BTC mining philosophy.
In accordance with Versluis, the very best time to become profitable in Bitcoin mining is when the worth rises sooner than the availability of recent mining machines. This creates a niche between hash energy provide and demand, permitting miners to earn greater income. Versluis mentioned that he took benefit of this loophole in 2019 to purchase used Antminer S9 and L3+ machines cheaply and to mine Bitcoin and Litecoin till 2022, once they grew to become unprofitable.
However Versluis mentioned he would not wish to put money into new machines proper now as a result of the numbers do not work for him. He estimates that he must spend $600,000 to buy 600 S19 machines, which might at the moment earn him $36,000 monthly.
Nonetheless, he said that block rewards will halve in eight months, which can make their machines unprofitable except the Bitcoin value doubles and the hash charge stays the identical.
Versluis argued that it might be higher for him to purchase Bitcoin instantly together with his cash, fairly than spend the preliminary value on machines that won’t pay again. He additionally mentioned that if the BTC value drops or stays round $30,000, he expects to have the ability to purchase used machines less expensive within the subsequent 12 months. Alternatively, he said that if the worth of BTC rises considerably and will increase demand for mining house, he might promote his plant at a superb value.
Versluis said that he’s in no rush to fill or promote his plant and can look ahead to the market to offer him with higher circumstances. He mentioned that he nonetheless believes Bitcoin mining is a worthwhile and rewarding exercise, however that it’s only doable if finished on the proper time and with the suitable technique.
*Not funding recommendation.
