Covid-19 Has Decimated Mining Farms Globally in First Quarter of 2020

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Umme Haani
Umme Haani is a writer for Thecoinrepublic. she contributes a researched piece on cryptocurrencies and updates. Umme is an aspiring engineer who immensely enjoys writing and technical writing brings the best of both worlds under one roof for her.
  • The Q1 Cryptocurrency Mining Industry has released its research report for the year 2020.
  • The preliminary parts of the report begin by commenting that the year 2020 saw an extremely volatile phase of the digital asset BTC.
  • The report also focused on the fact that only major players in the market adapt Structured Financial Products.
  • Finally the report concluded by commenting that the income of GPU miners will continue to go down.

The Q1 Cryptocurrency Mining Industry research report for the year 2020 has released. The report deals with the various nuances of the report to produce a summary of the same.

ASICs to be Squeezed Out

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The preliminary parts of the report begin by commenting that the year 2020 saw an extremely volatile phase of the digital asset BTC. The hash rate ranged at 100 EH/s and briefly touched ~70 EH/s. After which the report focused on the inability of  Older generation ASICs’ to outperform newer generation miners. This was justified when its profit margin turned into negative territory during the March market crash and recovered partially to an average of 20% during April 2020. Although it maintained at roughly 35% before March. However, being a specially customized chip to meet a specific demand, ASIC is still considered to be far superior to FPGA and GPU in performance, volume, and power consumption. Thus it has the potential to attract overall share in the mining market.

A turbulence in BTC Volatility

Furthermore, the report went on to predict market volatility in the near future. To ensure that the asset reaches the state of equilibrium after the instability that is might occur during post-halving. Thereby, increasing the efficiency of the blockchain network. It also added that the number of newly released mining machine models launched in Q1 2020 have decreased by nearly 60% from Q4 2019. However, the same accounted for the highest in number in comparison with the first quarter in the past three years.

The report also focused on the fact that only major players in the market adapt Structured Financial Products. The reason behind the same, according to the report, is the inability to understand such products properly by investors. Thus, causing some resistance with respect to adoption. Further grasping its attention to mining farms, the report suggested that mining farms from the west is leveraging various strategies to lower the cost of production, and as a result, selling bitcoin at a favorable price.

And for the conclusion

Moving on, the report claimed that the future Filecoin market direction depended upon the general market conditions. Besides the direct result of the Mainnet launch, and overall trust in the mining community post-launch. Finally the report concluded by commenting that the income of GPU miners will continue to go down. This is as a direct consequence of  Handshake ASIC mining machine Mars H1 in Q2 2020. Hence, ultimate phase-out once ASICs fully enter to the Handshake network in Q2 2020.

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