Bitcoin, the once popular digital currency, still seems to be unable to emerge from the cold winter. However, what is surprising is that global mining capital has continued to expand vigorously during this seemingly sluggish period. Let us delve into the changes in the Bitcoin market and reveal its secrets.

1. Bitcoin’s Winter

Although Bitcoin was once the darling of the market, and its price once soared, attracting the attention of a large number of investors, its price has fluctuated violently in recent years and once fell into a downturn. Many people began to doubt the true value of Bitcoin, and market sentiment became restless. This continued negative sentiment makes Bitcoin seem to be in the middle of a cold winter that it cannot escape.

However, it is precisely in this seemingly depressed market environment that the Bitcoin market is undergoing some unexpected changes. Despite frequent price fluctuations, global mining capital continues to expand and seems to be quietly conserving strength for the future of Bitcoin.

2. Expansion of global mining capital

As an important part of the Bitcoin market, mining capital plays key roles in discovering new coins and maintaining network security. Although the instability of Bitcoin prices has put certain pressure on the mining market, there is still a lot of capital willing to increase investment in mining.

Taking China as an example, as the world's largest Bitcoin mining market, a large number of mines have been expanding in recent years. Although the uncertainty of regulatory policies has caused certain troubles for miners, there is still a lot of capital that is optimistic about the long-term potential of Bitcoin and is willing to continue investing in the mining market. This phenomenon shows that despite the large price fluctuations of Bitcoin, global mining capital still has confidence in it and is willing to support its future development.

3. Source of confidence for mining capital

What exactly makes global mining capital still have confidence in Bitcoin? In addition to the technical advantages of Bitcoin itself, the potential profits in the market are also one of the important factors in attracting capital. Although Bitcoin prices are volatile, there are still opportunities for substantial returns for long-term holders. This potential profit has attracted the attention of many capitals, making them willing to continue investing in the mining market.

In addition, as a decentralized digital currency, Bitcoin’s global liquidity is also an important factor in attracting capital. As the application of Bitcoin continues to expand in various industries, its future potential is becoming increasingly exciting. This global application prospect also allows global mining capital to continue to have confidence in Bitcoin.

4. Looking to the future

Although the price of Bitcoin is still fluctuating and market sentiment is difficult to stabilize, the continued expansion of global mining capital adds a bright spot to the future of Bitcoin. As an important participant in the Bitcoin market, the confidence and investment of mining capital will inject new vitality into the development of Bitcoin, pushing it out of the cold winter and ushering in a new spring.

In this digital currency market full of variables, Bitcoin may still experience many challenges and twists and turns, but it is this kind of ups and downs that allows it to continue to grow. It is believed that with the continued expansion of global mining capital, Bitcoin will have a more brilliant future and contribute to the development of the global digital economy.

The story of Bitcoin continues, let us witness its growth and transformation together, and look forward to Bitcoin playing a more important role in the future world!

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Bitcoin has been through a rough patch over the past two years, and a major change on the horizon: the halving, may continue to bring uncertainty. But investors still appear enthusiastic about the potential rewards of Bitcoin "mining," pouring millions of dollars into an increasing number of high-powered mining hardware, supercomputer servers that can securely record Bitcoin network transactions and Get Bitcoin in return.

Layer1’s newest Bitcoin mining farm is backed by one of the biggest names in tech investing: Peter Thiel
Thiel, PayPal co-founder and early Facebook investor. Layer1, a startup company he invested in, announced today the opening of its first Bitcoin mining farm facility, covering an area of more than 30 acres and costing tens of millions of dollars.

Bitcoin is still recovering from the bursting of the massive speculative bubble in late 2017, when the decentralized cryptocurrency’s price collapsed after hitting $20,000. The price reached as low as $3.500 and gradually climbed back to around $10,000.

After a long, cold “crypto winter,” investors in cryptocurrencies have been generally depressed. But Bitcoin mining remains a clear bright spot.

Including Hut
8. Companies including Bitmain and Bitfarms have built or expanded Bitcoin mining facilities in 2019. Over the past year, Bitcoin’s network-wide “hash rate” (the total computing power of all participating miners around the world) has doubled.

Bitcoin miners and miners are essentially the bookkeepers of the Bitcoin network, responsible for compiling and adding transactions to "blocks" that are published every 10 minutes. Miners are people who solve very difficult, random mathematical equations (called "hashes" or "SHA256 algorithms") and are therefore empowered to publish large numbers of transactions.

When they win the computing competition, miners receive a fixed amount of Bitcoin mining rewards, currently 12.5 Bitcoins, which is approximately $125.000. In theory, it is still possible to start Bitcoin mining at home, but most Bitcoin mining today is on an industrial scale.

Layer1's new facility is in an unlikely location - about 100 miles west of Texas. Electricity is one of the biggest costs in Bitcoin mining, according to Layer1 CEO Alexander
Liegl Alexander Lieg said, "The cheapest electricity in the world right now is in West Texas."

Electricity in the region is cheap and plentiful thanks to a deregulated market, through the production of large quantities of natural gas, along with an infusion of massive renewable energy investment and state government subsidies.
Lieger said power from Layer 1 facilities is "heavily biased" toward energy-producing locations with some natural gas content.

But West Texas also has a big drawback: hot weather. Near Midland, mercury levels regularly exceed 100 degrees for nearly half the year, but to get the most out of your Bitcoin mining rig, it must be kept cold. This has prompted some Bitcoin mining companies to deploy their mining rigs in colder climates like Iceland.
(Layer 1 rival Bitcoin Continent is building a new Bitcoin mining facility in the cooler Texas Hill Country near east Austin.)

Layer1 handles heat smartly. by Liegl
Most Bitcoin mining rigs, known as the "shoebox" format, are long, air-cooled boxes with a fan on one end. But the company’s self-designed Layer 1 equipment begins mining Bitcoin while immersed in oil-based coolant. This fully isolates the device from outside temperatures, extending its life and even allowing overclocking, or running the hardware at higher power settings.

Liquid cooling allows Layer 1 to access affordable energy in any weather condition, which Ligg said is crucial to competing. New Bitcoin mining chips, known as ASICs, used to develop rapidly, forcing miners to make expensive upgrades to stay competitive.
But that competition has slowed, Liegl said, and "the competitive advantage going forward is lowering your operating expenses." Lower expenses (especially cheap electricity) make it easier to run specific Bitcoin mining hardware over time. More profitable.

Of course, the long-term value of a Bitcoin mining investment will always depend on the price of the infamous cryptocurrency. However, building Bitcoin mining facilities now brings another factor. In less than three months, Bitcoin will undergo what is known as a “mining reward halving,” a reduction in the rewards allocated to miners that occurs approximately every four years. This time, the reward per block will drop from 12.5 Bitcoin to 6.25 Bitcoin.

As Bitcoin mining rewards decrease, Bitcoin's design mechanism should force older and more power-hungry miners out of the Bitcoin network, leaving room for the remaining large computing power miners and large miners. Get a larger share of Bitcoin mining rewards. Of course, there is also speculation that reducing the number of newly produced Bitcoins could push up the price of each Bitcoin. As long as startups maintain higher efficiency than competing miners, Layer 1 technology and cheap electricity can turn the halving into an advantage.

"We don't care about the halving at all," Lieger said. "We just want to beat our competition."