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Bitcoin miners hard hit by the cryptocurrency crash risk to throw away the towel.
According to Blockchain.com, the bitcoin hash rate, a way to measure the computing power dedicated to extracting digital currency, has dropped about 24 percent from an unprecedented high between late August and November 24th. JPMorgan Chase & Co estimates that some miners in the industry are losing money after the fall in the price of bitcoin.
"This suggests that prices have fallen to such an extent that mining is becoming unprofitable for some," wrote in the November 23 report the strategists of JPMorgan headed by Nikolaos Panigirtzoglou, referring to the drop in the rate. hash.
The Bitcoin miners, who perform the necessary calculations to confirm transactions in the cryptocurrency, are rewarded for their bitcoin efforts. If prices suffer a lasting decline below the break-even point of the miners (determined by their electricity bills, the efficiency of the mining platforms and other factors), they may be forced to close their doors for avoid operating at a loss.
According to the report published on November 16 by Fundstrat Global Advisors, the operating cost of a bitcoin using Bitmain's Antminer S9 device was US $ 7,000. This level is probably lower for some miners with access to cheap electricity and equipment. Bitcoin, which fell about 80 percent from the peak in December, traded at $ 3,912 at 5:35 am New York time on Monday.
Bad news
Significant easing could be bad news for chip makers, including Taiwan Semiconductor Manufacturing and Nvidia, suppliers to the sector, as well as for the developers of mining platforms such as Bitmain Technologies, which are currently the focus of attention. 39, a public tender offer.
Nevertheless, the miners who survive the fall in prices have a good side of things, says Ryan Rabaglia, Hong Kong-based main trader at OSL, a cryptocurrency trading company. When weaker hands leave the bitcoin network, the difficulty of exploiting the cryptocurrency decreases. A reform could ultimately benefit survivors, baduming that the price of Bitcoin does not fall too quickly. – Reported by Eric Lam, with the help of Matt Turner, (c) 2018 Bloomberg LP
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