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- 1 Tether revealed a mining software to enhance Bitcoin mining capability.
- 2 Bitcoin halving slated for April 2024 would slash mining reward to 3.125 BTC.
To help the Bitcoin mining community, Tether released a new mining software to enhance the capacity and efficiency of mining operations. The new software includes inventive JavaScript libraries exclusively written to enhance command transmission. Als would send signals to Bitcoin mining hardware like WatsMiner, Antminer, and AvlonMiner.
Tether Plans to Pull Bitcoin Mining up a Notch
Chief Technology Officer for Bitfinex and Tether, Paolo Ardoino, shared a post in X (formerly Twitter) explaining the new release. He hints that selective parts of the software could be made available for open-source platforms in the coming months. Additionally, the software aims to enhance BTC mining capacity management, resulting in practical operations.
He spoke about his role as a core contributor to Moria, an orchestration instrument used in mining farms. The recent advancement revolves around the exciting Holepunch technology. Earlier as well, Arduino had shared insights about the functionality of Moria.
How Would New Software Benefit Bitcoin Miners and Tether?
Explaining the new software, Arduino says that every miner will be provided with a unique public/private key, which is a scenario facilitating encryption and secure data streaming through hyper cores and command reception through hyper swarms. This new approach would reduce the complexity of firewall configuration.
Also, it would build resilience to failure making the project strong enough to allow easy replication across sites. It would also create a sense of improved maintainability and modularity compared to previous similar attempts. Fighting various regulatory actions from the authorities, Tether is still committed to the crypto mining industry.
Tether has already expressed interest in allocating a select portion of monthly profits to buying Bitcoin. They also discussed investments in energy production and sustainable Bitcoin mining in Uruguay in collaboration with a local firm.
Uruguay is well-known for its solid infrastructure in the renewable energy sector. Due to abundant natural resources, almost 100% of the energy demands are met by renewable resources.
Bitcoin Halving and Its Effect on Miners
Customarily after every 21,000 blocks, the mining reward is slashed in half in an event called Bitcoin halving. In April 2024, the Bitcoin blockchain would see this event, and the mining reward would be cut from 6.25 BTC to 3.125 BTC per block. Generally, this event is followed by a price surge. But this time miners might face some severe issues.
During the halving of 2012, the BTC price jumped by 8,450%. In 2016, the gain was 290%, while in 2020, the halving price surged by 560%. Every time the mining rewards are slashed in half, miners cope by increasing their mining capacity and installing better technology. But this adds up to the cost of mining 1 BTC.
With ever-increasing electricity prices and ascending mining difficulty, mining costs have increased considerably. However, the BTC price has not increased at the same rate. Wolfie Zhao, Head of Research at Blocksbridge, researched the cost of mining and how it would increase during the next halving.
Currently, a miner spends around $10,000 to $15,000 per BTC; this gives them a good yield even with the current Bitcoin price of $29,001.6. Zhao suggests that after the halving event, this cost could range from $20,000 to $30,000. Miners would face serious issues justifying their financials.
Miners could be in serious trouble if the Bitcoin price during and after the halving is not significantly above $30,000. Another analyst from JPMorgan foreshadowed that the mining price could swell up to $40,000. If that happens, miners would be in deeper trouble.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
