What is the Best Bitcoin Mining Time in 2020?
Bitcoin’s recent plunge and its lacking of upward momentum have caused miners to bear a longer payback period for their investment. As the halving which will essentially reduce mining revenue by half is approaching, the situation will become more complicated for bitcoin miners, along with the arrival of the rainy season in Sichuan. Under such a circumstance, is now a good time to buy a bitcoin mining machine? And what to buy?
Timing matters a lot in bitcoin mining. To start at a good timing can make excess income; while bad timing will make payback nowhere in sight. For a potential miner, the period from now till the halving day is a good time to get in.
The latest S19 model is recommended for those new starters with poor risk tolerance, as there’s a bare possibility of price reduction for an S19 after the halving.
The S19 mining machine has a power efficiency of 34.5 J/TH and costs 163 yuan/T (roughly $23/T), cheaper than the single T cost of S17 machine. Due to the price crash, the price and release date are delayed by a week. It can be speculated that the current price of the machine is near the cost price.
If bitcoin’s price does not rise or even fall after the halving, it would lead to a large-scale shutdown of mining machines. However, S19, with relatively low power consumption, will still have profits in mining; If the price crashes again, down below the shutdown price of S19, mining machine manufacturers would not sell their most powerful rigs at a price lower than their costs, instead, they might choose to mine using these machines and wait for the price to rise.
A comparison of S17 and S19 in parameters
When bitcoin price continues hovering around $6,000 or even lower, there would be another timing for bitcoin mining – half a month after the halving. At that time, T17 is recommended.
After the halving, a T17 profit is low and may even appear a loss, at this time the return of the cost is far away, therefore the price of mining machine will fall. Some small and medium-sized miners will sell their second-hand machines, then the price of these machines would be a bargain.
If bitcoin price rises quickly in the next few months, so will the T17’s earnings (those of powerful machines will rise even faster), at which point the machines will be repriced. At that time, the profit from mining rises and the mining machines appreciates. There have been such cases in late 2018 and early 2019.