Bitcoin

In anticipation of the 2024 Bitcoin halving, Bitcoin miners seek ways to enhance efficiency. They are comparing the current mining difficulties with the challenges faced during the 2016-2020 halving epoch. Interestingly, they are turning to the WW2 allies' supply chain logistics for answers, according to <a href="https://hashrateindex.com/blog/what-ww2-logistics-algos-can-teach-miners-about-the-halving/?ref=hashrate-index-newsletter">hashrateindex</a>.&nbsp; 
The Simplex Method, a supply chain <a href="https://ultramining.com/news/en/viabtc-unveils-upgraded-mining-pool-technology-and-new-features-for-enhanced-user-experience/">optimization</a> algorithm created by mathematician George Dantzig during WW2, is in focus. This method is beneficial for solving complex optimization problems. Balmy Mining, a hypothetical venture, serves as an example of this method's application. Balmy Mining operates with constraints like specific power costs and capacities. 
The venture analyzed each crypto mining rig model's power and efficiency capabilities, a move akin to a linear programming decision model. By backtesting the optimal power settings across the fleet, the venture could maximize its mining income. For instance, when using a fixed hashprice of $72/PH/day, both M30 models in Balmy Mining's fleet should run at full capacity to maximize profits. 
However, miners need to adapt to hashprice volatility, adjusting their operations accordingly. In a scenario where network difficulty rises while Bitcoin’s price stagnates, and hashprice drops to $50/PH/day, Balmy Mining would need to decrease its power usage. Excess power could then be sold or used for new efficient mining rigs. 
The application of the WW2 supply chain model reveals that a comprehensive efficiency analysis can help miners cope with the Bitcoin price or hashprice changes. By doing so, they can ensure optimal returns from their operations, especially as the 2024 Bitcoin halving nears. 
Subscribe to our Telegram <a href="https://t.me/ultraminingcom">channel</a>! Only the most interesting stuff there

WW2 Supply Chain Model: A New Strategy for Bitcoin Miners

Ultramining_Eng

Other articles published on Jun 27, 2023

Forta and QuickNode Partner to Better Monitor and Protect All Assets in Web3

Cardano community concerned over Robinhood and Celsius selling ADA

US SEC Targets Terra Founder Do Kwon’s Crypto Assets in Swiss Bank Seizure

Celer Announces cBridge Bridging Support for Aura Network

Bitcoin’s $30,000 Support: A Consequence of Regulatory Updates and Institutional Entry?

ANIPANG BLAST is Globally Launched!

Join our free newsletter for daily crypto updates!