Author: Paul Sztorc 2016-03-09 17:58:18
Published on: 2016-03-09T17:58:18+00:00
Miners are making "extra-large" investments in hardware, and some miners believe that we may have reached a plateau of hardware efficiency. This could mean that hardware investments might not be made immediately preceding the halving. However, Chinese miners purchase power in fixed quantities for long durations, and these contracts overlap with the July halving, which means that they will need to mine at all times, even at a loss. It is less likely that miners will default on these contracts, but if they do, it would be potentially catastrophic. Paul Sztorc believes that investments in hardware should take place just 2016 blocks away from the halving instead of too soon. The more efficient miners become today, the bigger our potential problem in July because chip manufacturers may have used up all of the easy efficiency-increasing moves, such that investments do not take place in June.
Updated on: 2023-06-11T04:17:19.296144+00:00