Chinese Miners Selling Off Hardware by Weight
The decline currently being experienced in the prices of cryptocurrency is fast claiming lots of victims and, from all indications, miners are the next on the chopping block. Chinese-based cryptocurrency mining farms have been reported to be selling off their mining hardware by weight, instead of price per unit. Local crypto outlets, which reported this news, culled their reference from F2Pool, the cryptocurrency mining pool.
It was a bloodbath last week in the cryptocurrency markets as prices were on a major downward slide, with Bitcoin getting to as low as $4,000. This bearish run, that does not seem to be stopping anytime soon, has made mining cryptocurrency unprofitable.
According to the news outlet 8BTC, in order to not dip further into the red, most Chinese mining operators have been forced to sell their hardware at a loss. Referencing a post made on the Weibo microblogging platform by the founder of F2Pool, 8BTC claimed that the hardware is being sold by the kilo.
Older models such as Avalon A741, Antminer S7, and Antminer T9 that have “reached their shutdown price” are reportedly on sale by miners. Due to the loss in value of cryptocurrency, the earnings from mining are not enough to offset the power consumption cost and other related mining costs.
Small- and medium-sized mining farms in the regions of Inner Mongolia and Xinjiang have been badly hit by the market slump. 8BTC reports that in these regions, “some mining machines are being sold on the second-hand market for merely 5 percent of their original value.” To put things in perspective, mining hardware that was purchased for about 20,000 yuan ($2,885) just a year ago is currently on the market for 1,000 yuan ($144).
Ever since the hard fork upgrade of Bitcoin Cash (BCH), which occurred on November, 15, the price of Bitcoin has been sliding downward, dragging the rest of the virtual currency market with it. This update led to the suspension of trading and withdrawals of BCH by cryptocurrency exchanges across the world.
Early this month, Bitmain unveiled plans to deploy about 90,000 Antminer S9 machines in the Xinjiang region. This move by the mining giant has been seen as “a strategic one in the computing power war associated with the BCH hard fork.”
Cryptocurrency mining farms in China are currently feeling the heat of the market decline as they are reportedly selling their hardware by weight, instead of price per unit. The machine models on the chopping block are Avalon A741, Antminer S7, and Antminer T9. These older models are eagerly being sold because they have “reached their shutdown price.”
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