2018-11-23 03:35 |
While some of the ongoing rumours can neither be confirmed or denied, it is being reported all over the internet that the recent drop in Bitcoin’s native hashrate has forced a large number of crypto mining rigs within China to be turned off— primarily because this business avenue no longer seems to be profitable.
According to media content that was “allegedly” posted online by F2Pool owner BitFish, it appears as though many crypto enthusiasts within China now feel that it is time to put a halt on their mining operations and focus on something else..
The vid and photo shared by co-founder of F2Pool (Discus Fish) on Wechat today. Credits to him :) pic.twitter.com/PYOOiulSWT
— cnLedger (@cnLedger) November 20, 2018
In this regard, Dovey Wan, a partner at digitech firm Primitive, was quoted as saying:
“…Many miners are mining at loss at the current price point, now it’s more economic to turn it off and take it off from the rack to reduce cost on electricity and opex,”.
An In-Depth Look At The MatterAs things stand, the value of Bitcoin has fallen to a miserable price point of around $4575— a trend that has been ongoing for the past week or so.
It is also worth mentioning that since the start of this latest bear run, the value of Bitcoin has dipped by over 30% (with the premier digital asset even stooping to a low of $4,400 late tuesday afternoon).
According to Wan’s estimates, mining BTC through Bitmain’s latest Antminer S9 rig stops becoming profitable below the $3800 price mark. However, it is not just these costs that have forced Chinese miners to stop their ongoing operations, rather there are also other factors that need to be considered such as:
Increasing hydroelectricity costs Monopoly of big mining players Final TakeAs soon as pictures of various Chinese businesses getting rid of their mining rigs started circulating all across the internet, many western Twitter users were quick to claim that these stories were fake and were not steeped in any actual evidence.
According to many verified Twitter users, the photos showing different mining rigs dumped outside various office buildings are not new, but rather from June when the Chinese province of Sichuan was severely affected by a series of floods (which destroyed many mining hardware devices in the region).
With that being said, it is worth noting that Bitcoin’s native hash power has definitely dropped since last August (thus making this a rare occurrence for the network since the BTC hashrate has conventionally increased steadily over the course of the past year or so).
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