Immersion Mining in a Bear vs a Bull Market

Elite Mining Inc
5 min readAug 9, 2022

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Market conditions and their influence on cryptocurrency prices can be very unpredictable, fluctuating greatly. The state of the cryptocurrency market affects the prices of mining directly, whether crypto is in a bear market or a bull market.

Due to this, it is important to understand how specific market conditions will impact crypto miners. At Elite Mining Inc, we use proprietary immersion mining technology, which also directly impacts the mining process in various market conditions.

What is Immersion Mining?

Mining Bitcoin, or other cryptocurrencies, requires mining hardware that uses its processing power to generate a hashrate that actually “mines” the cryptocurrency.

In a standard air setup, mining hardware is stored in a warehouse-like setting and is cooled by large fans (i.e. air).

Immersion mining, on the other hand, submerges mining hardware in tanks that contain a special heat conductive fluid, where heat is exchanged within the setup to cool the machines.

Immersion mining has many advantages over air-cooled mining setups. One huge benefit of immersion mining is that it allows mining hardware to be overclocked, by upwards of 30% depending on the machine. This significantly increases the amount of crypto mined per machine.

Other potential benefits could include:

  • Less machine wear and tear
  • Longer machine lifespan (potentially up to 1.5x longer than in air)
  • Lower maintenance cost (less monitoring)
  • Compact and secure infrastructure
  • Mobile Immersion Pods*

*The actual mobility of immersion mining depends on several factors, specifically, how the pods are manufactured and installed.

Mining in a Bear vs a Bull Market

When mining cryptocurrencies, the reward for the mining process is the cryptocurrency itself, similar to mineral mining operations. This crypto can then be stored or sold, depending on market conditions and whether or not capital is needed for the operation.

According to Investopedia, a bear market is when the price of an asset falls by 20% or more from recent highs. Typically, a bear market is filled with pessimism and negative market sentiment. For instance, as Bitcoin declined tremendously in 2022, investor fear indicators hit their highest levels since the start of the COVID pandemic.

In contrast, a bull market is when a market experiences, or is expected to experience, a gain of 20% or more after multiple deficits of 20% or more. Bitcoin enjoyed a bull market most recently from mid-2020 through November 2021.

When mining in a bull market, crypto prices rise, so miners must determine if they should sell or if they should hold, in case prices rise even more. If crypto was stored during a bear market, miners must determine when they should sell their stored crypto.

Other considerations might be required if more capital is required to expand the mining operation. One important effect of a bull market that must be considered is that mining machines become more expensive because the dollar value of mining rewards increase. In a bull market, crypto mining thus becomes more profitable, increasing demand and pushing up prices for hardware.

When mining in a bear market, prices are decreasing, but the choices are the same as they are when mining in a bull market. However, these decisions will likely be made differently. For example, storing mined cryptocurrencies while waiting for higher prices could be beneficial, if the company has enough cash flow to sustain operations. Conversely, a bear market opens an opportunity to expand. This is because the price of mining hardware drops due to a decline in projected demand, as the dollar value of mining rewards decreases.

Bitcoin Market Condition Trends Table

The method of mining is the same regardless of the market, but the decisions crypto miners will have to make are very different. Deciding when might be the best time to store crypto, sell crypto, or expand, while taking into account market conditions that are unpredictable, can be extremely challenging.

Immersion Mining’s Edge

Since crypto mining is as monotonous as it is, it’s very hard to influence the actual mining process. One of the only variables that can be influenced is the hashrate of the machine. Hashrate can be adjusted by overclocking or underclocking the machine, which can be achieved through adjusting the machine’s firmware.

However, overclocking a machine can be dangerous. Overclocking could cause the machine to heat up exponentially, which could damage the miner if it were to overheat.

Immersion mining offers a potential direct advantage for the mining process. By using immersion technology, overclocking becomes a more realistic option, especially at higher overclocking rates, compared to other forms of mining. Immersion can protect mining hardware from overheating by regulating the temperature, while also protecting the machines from wear and tear and increasing the machine lifespan.

EMI’s Edge

Crypto mining is basically very monotonous: machines produce hashrate, which produces crypto.

Using immersion mining could improve this process by potentially:

  • overclocking machines
  • increasing miner lifespan
  • decreasing maintenance needs
  • and various other advantages

Yet, at the end of the day, the base remains the same: machines mining crypto. What’s needed to separate yourself in any market is proper decision-making and management, as well as flexible and lean technologies.

This is where Elite Mining Inc excels.

Elite Mining Inc, in addition to the benefits of immersion mining, also has mobile units that are outfitted with immersion mining technology, making it possible for increased flexibility and mobility. EMI creates new opportunities for mining by enabling clients to mine at remote locations or mobilize to locations with favorable regulations or electricity prices.

Additionally, when the main difference between a bear and bull market is what decisions to make, experience in different market conditions and the effect those decisions will have in the current market conditions can mean the difference between success and failure.

The team behind EMI has many years of experience in different market conditions and has already been through the bear market of 2018. This experience is key in making the right decision and getting on the path to long-term mining success.

Want to learn more about immersion mining or EMI? Contact us or join us on Telegram!

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Elite Mining Inc

Elite Mining Inc, USA - Wyoming based, green cryptocurrency and immersion mining company! https://elitemininginc.com/