Canaan boss Edward Lu sees the possibility in Bitcoin miners’ shrinking profits.

Before 2017, China and the United States were the two largest markets for mining, as measured by hash rate production. In the subsequent phase, Chinese miners left the country for Kazakhstan. Then, beginning this year, we have seen much market activity in the United States, particularly in Texas, where you now reside.

In addition to considerably more economical electricity availability and accommodating policies and engineers, there are competent engineers with enough training to be employed by such organizations. Consequently, the mining sectors are now seeing a considerable degree of activity.

The mining sector is robust and very lucrative in its own right. Even if these days are included in the short period, there has been a slight decline. The cost of Bitcoin and energy continue to increase. However, regardless of whether you are analysingCAPEX, OPEX, or the profitability of the mining firm, several components combine to produce the whole. Your machine expenses are without question the most significant factor to consider. Your energy expenses are ranked second. The cost of your infrastructure is third on the list. The daily maintenance operating expenses are the fourth item on the list. To the best of my knowledge, however, if you consider the current machine efficiency, the current market, the average price of electricity, and your OPEX, then the Bitcoin price cannot go below $15,000 for miners to continue generating a profit. This is calculated using the average cost of electricity and your usual operating expenditures.

Also read: What if All Bitcoins Are Mined and No Bitcoin is Available for Mining?

The incentive was designed to halve every four years, with diminishing value. Nonetheless, this does not always imply that your revenues will decrease as time passes. Historically, each division occurred after four years, and the corporation continued to grow at a healthy pace. The mining industry continues to evolve. As previously said, the profit depends on a range of circumstances. Your energy costs, the cost of your equipment and infrastructure, as well as your OPEX and CAPEX charges. The price of Bitcoin is, of course, the last factor to consider, and it bears considerable weight. Consequently, several objects are clustered together.

In the past, the efficiency of machines was more than 60 or 65 joules, but this value has declined with time. Regarding the market as a whole, the average efficiency is around 30 joules.

The fluctuations of Bitcoin are converging with those of traditional financial markets. Bitcoin’s volatility is comparable to that of the conventional market as it exists today, as opposed to the market as it existed before. Considering Bitcoin as one of the primary financial assets is a significant and welcome step for me. It is a precious item that is becoming more commonplace these days.Canaan is unlike other organizations that manufacture containers based on consumer needs. All big firms produce equipment that consumes more than 6,500 watts of electricity. These companies are developing mining hardware that is not intended for ordinary bitcoin investors. They are staunch in their devotion to the roots of the culture, which emphasizes decentralization. If you examine their machines, you will see that they place great importance on each device separately. Because the power consumption of each machine is restricted to less than 3,500 watts, it is possible to mine cryptocurrencies in any domestic location, including the home, garage, and kitchen. You may buy a single item or 10. This is based on factors such as the price of electricity in your region, but the machine itself is decentralized. You do not necessarily need to be mining alongside major enterprises gathering at a vast mining site or under a massive infrastructure of containers.

Let’s have trust in this industry since it has advanced in terms of mining machine technology, infrastructure development, the use of renewable energy, and the ratio of individual to institutional players. Additionally, everyone thinks Bitcoin is now a kind of financial asset, which brings up an additional point: ownership. Have confidence in this company.

According to him, the current scenario offers more opportunities than obstacles; there are more opportunities for miners, miner manufacturers, infrastructure builders, energy builders, and even traditional financial investors. According to him, there are more opportunities now than ever before.