The entire crypto industry is currently eagerly waiting for a Bitcoin halving. This article won’t go into too much detail about what halving is, but in short, the reward for a found block will reduce from 12.5 BTC to 6.25 BTC. This is a whopping 50% reduction, which means that the supply of new Bitcoins will be sliced in half! Here is a nice countdown page with some more information about Bitcoin halving. In this article, we will try to give some useful suggestions to Bitcoin miners on how to maximize profits after halving.

What does halving mean for Bitcoin miners?

Bitcoin miners use ASIC machines that are dedicated to calculating hashes by utilizing the SHA-256 algorithm. After Bitcoin halving happens, the reward for mining will be reduced by half. This is a harsh reality of Bitcoin mining and a lot of miners won’t be able to cover the operating costs of running a mining farm. Some will be forced to shut down and some will have to look for alternatives. So how can miners survive and thrive after halving?

How can Bitcoin miners profit after Bitcoin halving?

To maximize profits after Bitcoin halving, Bitcoin miners can point their ASIC machines to NiceHash stratum servers. This will allow miners to rent out their hash-power to the NiceHash hash-power marketplace and maximize mining profits! To learn more about how NiceHash works click here.

Why is NiceHash good for ASIC miners?

If miners rent out their hash-power to NiceHash, they always get paid in Bitcoin - even if they are running ETH ASICs or any other. So if Bitcoin mining with SHA-256 becomes unprofitable, NiceHash will relocate this hash-power to some other SHA-256 based coin and still provide payments in Bitcoin!

By connecting ASIC machines to NiceHash, every mining farm can mitigate their risks with volatile price changes when mining different coins. ASIC machines can stay profitable long after Bitcoin halving is over.

NiceHash serves as a great diversification method for every big miner to secure a constant payout in Bitcoin - again, even if you have “non-BTC” ASICs!

What is the difference between NiceHash and pool mining?

Let's take an example of a big Bitcoin mining farm with hundreds or thousands of ASIC machines (running the SHA-256 algorithm).

Such a farm usually connects to a pool that supports SHA-256 mining. In return for the provided hash-power, the pool will pay out the rewards - in BTC. When the halving happens this reward will be reduced by half!

Now, let’s see what happens at NiceHash. NiceHash is a hash-power marketplace. This means that buyers of hash-power can rent the provided hash-power from the miners. A big mining farm with ASIC machines (running the SHA-256 algorithm) can connect to NiceHash just as it would when connecting to a pool. But with a big difference! This hash-power becomes available for rent and can be used for some other coins running the SHA-256 algorithm and not just Bitcoin! In the end, buyers decide where and how the hash-power will be used. But the best thing is, that miners are still paid in Bitcoins!

This becomes even more obvious if we take Ethereum miners for example. When mining to a pool, the pool will pay out ETH. But when connected to NiceHash, miners rent out hash-power for any other coins utilizing the Dagger-Hashimoto algorithm, and they always get paid in Bitcoin!

This is how big miners, who invested in Bitcoin mining can start connecting their ASIC machines to NiceHash and secure maximum profits for their investment after halving.

If you need more information on how to connect your mining hardware to NiceHash do not hesitate to contact us.

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