There is a positive reaction from cryptocurrency about the upcoming halving event. Miners are trying to make their Bitcoin’s (BTC) production cost double overnight seeing the halving event approaching. Considering the coronavirus pandemic and the massive wave of unemployment, people are very much optimistic about the post-halving situation. A production cost augmentation can prove manageable for Bitcoin miners in countries with subsidized electricity such as China and Venezuela.
Preparation of European Miners for the halving
In Europe, some miners may shut down if the prices don’t go in favor of them and we know the electricity prices are highest in Europe. Miners can take preparation for all scenarios regarding the bitcoin price by upgrading to the latest machines, newest infrastructure, sourcing cheaper power sources etc.
As the post-halving situation is unknown, the good decision seems to be to prepare the worst case scenario. Europeans miners can go for equipment upgrades and cheap electricity sourcing through partnership. Hedging strategies and credit accruement could be more acceptable solutions to them. There is a growing array of financial instruments available for digital management.
Mining Future in Europe
Despite being large power plants in Europe, European countries mining are still in a lack. In this situation, the solution can be leveraging excess power and renewable energy. But nowadays mining is becoming popular in Europe especially in Iceland and Sweden. German is also walking across the same way with power producing and excess energy.
The cryptocurrency mining should be approved by the government because a sudden ban can lags miners far behind and throw them out of business. So the government’s approval is significant to miners. So miners are very much thoughtful about regulation and political stability.
In recent days, Europe has become the most viable markets long term for the mining industry. The entire positive outlook should translate into evident benefits for miners to come into efficiency. Portugal has recently introduced tax breaks for cryptocurrency issuers is a beginning. With the decision of Portugal, their innovative-oriented mind has been appeared.
Considering the condition of Europe like alternative electricity sourcing and government incentives it can be thought that if the post-halving situation of Bitcoin is negative even than miners can survive there. Though Europe is cost-prohibitive for mining, cost of electricity is a fundamental barrier there.
The answer goes to miners in lie in countries with cheaper electricity like China or Russia. But the U.S. is exceptional in that case like it has certainty with the government, regulation, electricity rates, exceptional redundancy with internet and power. But in Europe there is lacking of these. So, Europe needs to cope up with countries like China or U.S. as the country has a bumpy road ahead.