A popular theory has been going around the crypto sphere that the COVID-19 pandemic can kill the bitcoin mining industry. There may be some truth to it to some extent.
Small miners have been pushed out of the Bitcoin mining industry. The sudden collapse of the Bitcoin price and the shortage of mining (Application-specific integrated circuits) ASICs have also contributed to damaging the mining industry.
The pandemic also led to complete lockdown in various parts of the world. Equipment production units have shut down. No new, advanced mining equipment was launched throughout this pandemic. In China, it was reported that the country is facing a shortage of mining rigs.
Bitcoin mining industry has taken a huge hit
Although miners are still trying to keep up with their old equipment, it is believed that mining will become even more difficult which would ultimately force miners to halt their activities. Also, the market prices have been fluctuating a lot lately and this volatility is hitting the economic viability of small-scale miners.
The pandemic hasn’t just affected the manufacturing aspect. There is a shortage of human resources being reported. When countries are under total lockdown, people can’t access their offices.
In such countries, only essential services are allowed, which is focused to provide people with basic amenities. The shortage of personnel has led to temporarily halting the big mining farms and pools.
Bitcoin mining industry takes time to heal
There is no estimate on how long the pandemic is going to affect the daily lives and how long the lockdown is going to be.
If the lockdown remains for a considerable time, the industry will take some time to heal and regain the capacities back.
In any case, it seems very unlikely that the bitcoin mining industry will stop. Post lockdown, miners will look forward to better mining equipment and services to make up for the lost time