It has been pointed out that the income of miners will sharply decrease due to the 'Bitcoin halving' around April 20, 2024, and it is likely that miners will move their bases to low-cost countries such as Ethiopia, Tanzania, Paraguay, and Uruguay in the future.



In the virtual currency Bitcoin, a cycle called a ``

halving '' occurs approximately every four years, in which the reward of new Bitcoins obtained through mining is reduced by half. It is thought that the fourth halving will occur around April 20, 2024, and as a result, virtual currency miners in the United States and China will move to countries with lower electricity costs such as Ethiopia and Tanzania. Possibilities are suggested.

Crypto: Bitcoin 'Halving' Spurs Exodus of Old US Mining Computers Abroad - Bloomberg
https://www.bloomberg.com/news/articles/2024-03-23/bitcoin-halving-spurs-exodus-of-old-us-mining-computers-abroad



US Bitcoin Miners Move Old Equipment Overseas – Here's Why | Bitcoin Insider

https://www.bitcoininsider.org/article/244967/us-bitcoin-miners-move-old-equipment-overseas-heres-why

Iceland's PM gives cold shoulder to crypto as miners search worldwide for cheap electricity: Reports | The Block
https://www.theblock.co/post/284326/icelands-pm-gives-cold-shoulder-to-crypto-as-miners-search-worldwide-for-cheap-electricity-reports

Chinese bitcoin miners are flocking to Ethiopia, attracted by cheap energy, ideal climate | South China Morning Post
https://www.scmp.com/tech/tech-trends/article/3251352/chinese-bitcoin-miners-are-flocking-ethiopia-attracted-cheap-energy-ideal-climate

The number of Bitcoins issued is not infinite; there is an upper limit of approximately 21 million. Therefore, the ``halving period'' occurs once every four years, when the reward received from mining is halved, and the number of newly issued Bitcoins added to the network is halved.

At the time of article creation, miners can receive 6.25 BTC (approximately 10.1 million yen) for each verified block added to the network, but when the halving period arrives, that amount will be 3.125 BTC (approximately 5 million yen). will fall to. The halving has so far occurred in November 2012, July 2016, and May 2020, and the fourth halving is expected to occur around April 20, 2024.

In preparation for the upcoming halving, miners are looking to reduce the impact of the halving by upgrading to the latest and most efficient technology. For these mining companies, the most costly item is electricity charges.



Therefore, it seems that multiple mining companies are transferring or selling old computers with low power efficiency in the United States to Ethiopia, Tanzania, Paraguay, Uruguay, etc. According to Luxor Technology, which handles virtual currency mining, approximately 600,000 S19 mining rigs used by the company in the United States have been transferred to countries in Africa and South America.

Luxor Technology says, ``While the S19 may not be cost-effective to operate in the United States, operating it in certain regions of Africa could yield significant profits and extend the life of the computer itself.'' ” states.

Similar moves are underway in China, and in Ethiopia, which has had a cooperative relationship with China since around 2012, Chinese companies have provided funding for the construction of a hydroelectric dam worth approximately $5 billion (approximately 756 billion yen). did. As a result, China-based mining companies are concentrated in Ethiopia. In fact, Ethiopia's national power monopoly has contracts for power supply with 21 mining companies, 19 of which are Chinese companies.

Ethiopia, which has friendly relations with China, is known for having one of the lowest electricity rates in the world. The graph below shows the cost required when using 1 kilowatt of electricity for 1 hour, and you can see that it is only 0.6 cents (about 0.9 yen) in Ethiopia.



On the other hand, in developing Ethiopia, where half of the people live without electricity, the overheating mining boom is being viewed as a problem.

Still, says Taras Kriek, CEO of mining company SunnySide Digital, ``Ethiopia is playing a major role in the digital mining ecosystem.''



In contrast, Iceland, which is rich in hydroelectric and geothermal power, has been one of the world's leading mining nations, but Prime Minister Katrín Jakobsdóttir has warned that ``cryptocurrency mining consumes more electricity than an Icelandic household.'' ``We want to regulate this,'' he said. Jakobsdottir also said, ``Our goal is to increase Iceland's food production and share renewable energy from the cryptocurrency mining industry to Icelandic households and other industries.''

in Web Service, Posted by log1r_ut