Bitcoin Mining Giants Battle for Dominance Ahead of Halving
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In the high-stakes arena of Bitcoin mining, Antpool and Foundry are locked in a heated battle for dominance, controlling over 50% of the global hashing power. As the eagerly anticipated Bitcoin halving event looms in May 2023, the competition intensifies, with implications for the entire cryptocurrency market.
Chinese-based Antpool has been steadily widening its lead over its U.S. counterpart, Foundry, in recent weeks. This power struggle is not merely a race for supremacy but a strategic move in anticipation of the impending halving event, set to slash block rewards by 50%. This seismic shift will undoubtedly impact the supply and price dynamics of Bitcoin.
Web3 analyst Bradley Park, from CryptoQuant, sheds light on China’s aggressive mining push, linking it to the potential approval of a Bitcoin exchange-traded fund (ETF). The approval of such an ETF could significantly boost Bitcoin demand and value. Park predicts a looming competition between China and the U.S. in mining machine productivity, driven by rising power expenses and escalating mining difficulty.
Bitcoin Mining Giants Acquiring Advanced Mining Rigs Ahead of Difficulty Peak
Meanwhile, Metalpha’s senior analyst, Lucy Hu, offers insights into the changing landscape, emphasizing the dominance of advanced rigs like the Antminer S21 in the face of the approaching mining difficulty peak. It’s worth mentioning that Antpool stands out, with its reserves climbing substantially throughout November, unlike other miners whose Bitcoin reserves are stabilizing.
As the mining difficulty peaks and production costs double due to the halving event, Hu suggests that miners will prioritize acquiring the latest machine models, such as the Antminer S21. This strategic move aims to lower costs and secure a larger market share, with miners expected to sell only enough Bitcoin to sustain operations until potential ETF approvals.
The Bitcoin mining industry has become a battleground where innovation and strategic investments in cutting-edge equipment may spell the difference between success and obscurity. The global crypto community watches with bated breath as Antpool and Foundry engage in this intense pre-halving competition, shaping the future of Bitcoin mining.
