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Bitcoin Global News (BGN)

March 05, 2019 -- ADVFN Crypto NewsWire -- The crypto winter continues and crypto mining continues to suffer as it does. In China however, change might be on the near horizon due to a phenomenon that reportedly occurs during the summer. According to CoinDesk, Chinese Bitcoin miners are buying mining equipment and space for mining again because they feel confident that hydroelectric power plants will be cheap sources for them again.

The reason for this move to set-up reliable mining farms again is clear. Because the summer in China is a much wetter season by volume than the spring, it has reportedly been predicted that hydroelectric power plants will churn out much more electricity than is needed.

While, of course, it is not certain how much rain the country will get this summer, the average electricity cost will likely be around $0.037 per kilowatt hour, judging by number’s from the Sichuan province. Compared to  China’s average yearly cost of about $0.08 per kilowatt hour, this represents a large amount of savings for the already suffering mining space.

The problem with this is that nothing is certain. Maybe China will get enough rain to generate these expected numbers and maybe the mining niche will continue to suffer. Furthermore, how are these mining groups taking the possible price movements of Bitcoin into account?

In a nutshell, the reason for miners’ confidence in this possible turn of events appears to be because of the fact that power deals for the summer with Chinese hydroelectric plants can be finished by the end of this month.

On top of this, the fact that mining groups of all shapes sizes bodes well for the chances of figuring out how to continue to survive the bear market. Two key questions remain: is any of this good for Bitcoin users and the future of the overall network? How much centralization is too much in the mining space?

By: BGN Editorial Staff