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Cheaper T19 Bitcoin Miner Launched Bitmain to Recoup Lost Market Share

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On June 1, giant mining equipment manufacturers Bitmain announced the launch of the cheaper T19 Bitcoin miner in a bid to reclaim its lost market share. The new Antminer T19 has a hash rate of 84 terahash per second (TH/s) and power efficiency of 37.5 joules per terahash (J/TH).

The new model was designed after the cost-effective Antminer S19 Bitcoin miner, but only cheaper. The S19 which comes with a computing power of 95 TH/s, with a market price tag of $1,785. On the other hand, the cheaper T19 Bitcoin miner costs slightly less at  $1,750. According to the announcement:

“The Antminer T19 is housed with the same generation of custom-built chips found in the Antminer S19 and S19 Pro, ensuring capable and efficient operations for mining cryptocurrencies.” 

Cheaper T19 Bitcoin miner available from June 1

As per the international Bitcoin mining network, F2pool, the cheaper T19 Bitcoin miner will generate up to $3.17 in daily profits. In contrast, the efficient S19 model can generate up to $3.96 based on the expense of $0.05 per kilowatt per hour.

Moreover, the new T19 model went on sale on June 1, with the maximum restriction of two miners each to each purchaser. This limit is put in place to avoid stockpiling and to enable individual buyers to purchase mining equipment as per the company. Additionally, the latest model will be shipped between June 21 and 30 according to Bitmain.

The latest model is more effective than its predecessor the T17 model, which has declined at a staggering rate of  20 – 30 percent together with the Antminer S17. The more common failure rate is basically 5 percent. The new cheaper T19 model comes with an ‘upgraded firmware’ seemingly to enable “faster start-up speeds.”

Bitcoin Halving forced Bitmain’s hand

Furthermore, the new cheaper T19 Bitcoin miner comes after Bitcoin’s May 11 rewards halving, which slashed miners’ rewards by half to 6.25 BTC per block. The halving event has resulted in most miners shutting down shop and look for more cost effective mining equipment 

Additionally, Bitmain has lost its market share to upcoming rival Microbt. As per data by Coinshares, the Beijing-based mining giants gave up at least 10 percent of the market share to Microbt back in 2019.

Post- Bitcoin Halving Could see 30% of Miners Close Shop as Business Turns Unrewarding

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Almost a third of bitcoin mining farms could shut down their mining machines as business turns unprofitable post-bitcoin halving, as businesses turn unprofitable due to the lowering of BTC mining rewards.

The third bitcoin mining event that was completed yesterday slashed the supply of bitcoin, reducing the incentives paid to miners for their efforts by half to 6.25 BTC per block. According to the vice president of Poolin Mining Pool, Alejandro De La Torre, BTC miners who make up 15 percent to 30 percent of the total bitcoin network hash rate are already in the process of shutting down their equipment as profit margins fall.

Miners with outdated rigs to shut down post-bitcoin halving

Indeed, mining companies that use old obsolete mining rigs such as the Bitmain S9 miner, which consumes more energy, will have to be the most affected, according to Poolin’s vice president. In his recent analysis, he wrote:

“We expect that the first 1008 blocks after the halving will be mined slowly as huge numbers of unprofitable miners drop off the network. We estimate around 30% of the entire Bitcoin network will be squeezed considering that the first 1008 blocks will have the pre-halving difficulty, but half the reward.”

Occasional halving events put a lot of pressure on the miners, as the incentive has a 50 per cent effect on the revenues produced by the mining companies. Nevertheless, some experts believe that the dip in income is indemnified through a spike in the price of the flagship digital currency; an accomplishment often associated with the past two halvings. Regardless of the argument, the less effective mining firms will be pushed out of the game easily.

Bitcoin mining is all about durability

According to Poolin VP, this is a long game that relies on durability and survival. He claims that mining companies that are unable to reduce the cost of mining to keep up with the most powerful mining rigs on the market must pay the price.

No matter how miners feel about their revenues, the new bitcoin halving event means their rewards; it will be halved for every block mined. Post-bitcoin halving, bitcoin network complexity, total hashrate, and the price of bitcoin could be big statistics to keep an eye on.

Bitcoin Halving: 3rd Halving Sees BTC Record an all-time High Hash Rate

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On Monday, May 12th, the much-anticipated bitcoin halving event happened, lowering the rate at which fresh BTC coins are created. Monday’s adjustment reduced the rewards given to BTC miners from 12.5 BTC per block mined, to 6.25 BTC. Bitcoin recorded an all-time high hash rate on its third halving day.

According to data by TradeBlocks.com, the historic third-halving event happened at  3:23 p.m. EST on Monday. Following the halving event, BTC is presently trading at $8,720 dominating 67 percent of the entire cryptocurrency market, according to Coinmarketcap.com.

BTC sees record hash rate on Bitcoin halving day

The flagship digital currency recorded an all-time high hash rate on its block halving day. This is the third occasion the block rewards reduction is taking place since Bitcoin was created 11 years ago. The new record hash rate is at about 140 EH/s. Despite being a slight improvement on the previous high recorded back in March, it was not consistent in anticipation of lessening of the hash rate.

The previous all-time high hash rate was recorded early in March at approximately 133-135 EH/s. The popular digital currency, which is currently trading at around $8,700, has surged by about 20% since January. BTC price touched $10,000 last week after recovering from the mid-March market crash which saw its price fall below $4,000. 

The Aftermath of BTC halving

Bitcoin halving events have been the subject of divergent price predictions and discussions due to the positive effect of the previous two halvings on the price of BTC. Some market participants speculate that the latest event won’t have any effect on the price of BTC, while others anticipate a positive outcome due to the reduction in the supply of BTC tokens.

Although its impact on the price of BTC remains to be seen, bitcoin halving has a direct impact on bitcoin miners. Indeed, some market experts anticipate miners to close down the creation of fresh bitcoin tokens as the majority of mining equipment will be out of date.

 As per the vice president of mining firm Poolin,  Alejandro De La Torre, several unsuccessful mining firms had already begun closing down their equipment before the Bitcoin halving event on May 12.

Bitcoin Price Needs To Be Higher Than $7000 For Miners To Have a Profitable Post Halving

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It has only been 3 months into 2020 and Bitcoin has already witnessed a turbulent time in the digital asset space. However, a major event which is yet to commence in 2020 is the Bitcoin halving.

Bitcoin halving is one of the mechanisms in the BTC code, which is irreversible and inevitable. Bitcoin’s anonymous developer, Satoshi Nakamoto included a slash in supply in order to cope up with inflation and over the past two halvings in 2012 and 2016, miners have managed to remain profitable after the reduction of block rewards.

However, the global financial market is currently undergoing a tumultuous meltdown amidst the impact of COVID-19, and Bitcoin’s current valuation was raising serious concerns for the miners.

Miners Profitability after Bitcoin Halving

Gate.io recent’s research on the Influences of Bitcoin halving indicated that historically, a halving event has triggered a price rise after a few months post halving and the hash rate has improved as well.

The major concern was Bitcoin has never experienced a halving amidst a global financial crisis. Although popularly deemed as an uncorrelated asset, BTC’s increased correlation with S&P 500 rang bearish alarms across the industry, raising questions about Bitcoin’s valuation post halving.

In light of the scenario, a study was conducted to understand the price range of BTC above which miners will remain profitable posting halving.

The report explained that when BTC price drops below the cost or overall maintenance of a mining rig, it can no longer make profits from the block rewards.

The term used by the research is ‘shut-down price’ for miners which are self-explanatory with regards to Bitcoin’s value.

Analyzing the above charts and mining rigs available in the market, it can be identified that Bitcoin has to consolidate at least above $7234 post halving for miners to be profitable. The AntminerS19 Pro indicated the least shut-down price, but that particular rig is yet to be available in the market.

If we run an average shut-down price on all the 25 mining rigs, the average shut down price for Bitcoin came up to a whopping $25,385.

Additionally, the report stated that the possibility of miners switching their mining rigs would increase since they would need to be cost-effective in order to incur profit from BTC mining.