Analysts are predicting a rise in Bitcoin mining profitability of about 35% during the short term. This would be the effect of the bitcoin mining crackdown in China. Since the crackdown happened, a significant portion of hashrate stemming from the Bitcoin network disappeared. Ousted miners are struggling to relocate, and some might not even make it due to the complicated logistics of these operations. All of these reasons combined can create a great time for new companies to enter the mining space.
Bitcoin Mining Profitability Will Rise In The Short Term
Bitcoin’s mining profitability is expected to rise in the short term due to the complex situation miners are facing in mainland China. According to Whit Gibbs, CEO, and founder of Compass, this will continue in the short to medium term. Gibbs told CNBC:
We are expecting a period of much higher mining profitability for Compass Mining clients. We expect miners to be approximately 35% more profitable.
Compass is a bitcoin mining company that started offering its services this year, after getting $1.7 million in a seed round last February. The mining exodus will likely benefit incipient providers and companies like them in the future. Other crypto analysts concur. Darin Feinstein, founder of Blockcap, a mining behemoth in North America, stated:
We are expecting a revenue and profit increase for the foreseeable future. This was an unexpected gift to the network, not just on revenues but on decentralization and sustainable energy metrics.
Bitcoin just experienced one of the biggest difficulty drops in its history shaving more than 27% in one hit. This means that most miners will reap more rewards in the short term. This mechanism
