Crypto

Riot Blockchain Expects a big Bitcoin Mining Deficit due to the Coronavirus

The global impact of the coronavirus crisis cannot be underestimated. It now even seems that the Bitcoin mining industry may face some challenges moving forward, in the eyes of Riot Blockchain.

Bitcoin mining requires a set of specific conditions to be met.

Riot Blockchain is Concerned

As those conditions align, the profitability of the venture can be determined.

Riot Blockchain is one of the many companies active in this particular segment.

In its new annual report, the company is concerned about the coronavirus crisis.

So much even that the company expects a potential drop in overall revenue.

Riot Blockchain is also suffering from workers being quarantined and the supply chain locking up across the board.

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Bitcoin mining operators and manufacturers are, after all, nonessential businesses.

For the company, servicing miners and the native ability to mine Bitcoin will be pretty problematic for quite some time to come.

How the situation will evolve over the next few weeks, is anyone’s guess at this point.

It is not the first time that a Bitcoin mining firm expresses its concern over the current coronavirus situation.

It would explain why the Bitcoin network hashrate has come down significantly in recent weeks.

Unless the situation improves, the upcoming block reward halving may not be much of a joyous occasion after all.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

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