CEO Announces He Will Shut Down His Bitcoin Mining Facilities: Explained The Reason

Rolf Versluis, the founding father of Horizen, a privacy-enabled sidechain platform cryptocurrency, has introduced that he’ll briefly shut his 2.1 MW Bitcoin mining facility.

Versluis, who has been mining Bitcoin since 2016, defined his resolution in his article sharing the round BTC mining philosophy.

In keeping with Versluis, the most effective time to earn money in Bitcoin mining is when the value rises sooner than the provision of latest mining machines. This creates a spot between hash energy provide and demand, permitting miners to earn increased earnings. Versluis stated 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 stated he would not need 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 per thirty days.

Nonetheless, he acknowledged that block rewards will halve in eight months, which is able to make their machines unprofitable except the Bitcoin value doubles and the hash fee stays the identical.

Versluis argued that it could be higher for him to purchase Bitcoin instantly along with his cash, reasonably than spend the preliminary value on machines that won’t pay again. He additionally stated 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 acknowledged that if the value of BTC rises considerably and will increase demand for mining house, he could promote his plant at a superb value.

Versluis acknowledged that he’s in no rush to fill or promote his plant and can look forward to the market to supply him with higher circumstances. He stated that he nonetheless believes Bitcoin mining is a worthwhile and rewarding exercise, however that it is just attainable if executed on the proper time and with the correct technique.

*Not funding recommendation.

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