As reported by cryptoslate.com on October 31.2020, one of the biggest impacts on the Bitcoin mining industry was the supply chain disruption caused by COVID-19. Companies and production went into quarantine, and the reduced numbers of workers available due to illness caused massive delays in miner shipments. COVID-19 impacted markets, economies, and individual income, and because of this disruption to the supply chain, much of that new equipment was stalled.
This was definitely effective after the halving, which occurred in May. Halving is programmed into the Bitcoin protocol as a way to regulate the ecosystem and happens every four years. It creates a check to inflation by cutting the reward a miner earns for adding a block to the blockchain in half. Before May, a miner would earn 12.5 bitcoins for solving and adding a block; after the halving, the reward was reduced to 6.25 bitcoins.
Because mining would take more effort after the halving and would require an upgrade of equipment, many miners needed to evaluate if they wanted to continue mining or not. And that’s exactly what happened. After the halving, many miners turned off, resulting in a massive drop in hashrate. But we didn’t see that last for very long. Shortly after the drop, we saw an enormous increase in hashrate, which means that machines were turning back on. And since then, hash rates have regularly increased.
Once mining hardware gets to where it’s going, they easily run with little personnel involvement, and there’s little worry about having a number of staff on-site during a pandemic.
And since we’ve been successfully mining and scaling our operations at Genesis Mining for over seven years, we’ve dealt with the unexpected, and have learned through trial and error. You have to be ready to pivot, reallocate your resources, and rethink your strategy — and prepared miners did just that.