The Halving of 2020 Will Make Mining More Centralised

The last halving event of 2016 made it even harder for people mining from home to compete with the big data centres running thousands of miners. The reason large scale mining operations can crush the competition is because they can source miners in bulk at a cheaper price and have access to much cheaper power rates (sometimes even as low as 3 cents kWh). These numbers make it incredibly difficult for home miners or those running small mining operations to compete with the big players.

Whilst the halving event of 2016 crushed home miners, the halving event of 2020 is likely to result in the smaller mining operations shutting down. This will result in Bitcoin mining become even more centralised than it already is. This event is likely to play out in favour of the big players. The common saying definitely springs to mind here, “Go big or Go home”.