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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. says some miners are losing money after the fall in Bitcoin prices.
"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 efforts with Bitcoins. If prices suffer a lasting fall below the break-even point of the miners (determined by their electricity bills, the efficiency of the drilling rigs, etc.), they may be forced to close their doors to avoid operating at a loss .
A report released Nov. 16 by Fundstrat Global Advisors estimated the break-even point of operating a bitcoin using the Bitmain Antminer S9 platform at $ 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, was trading at $ 3,912 on Monday at 5:35 am New York time.
Significant easing could be bad news for chip makers, including Taiwan Semiconductor Manufacturing Co and Nvidia Corp, suppliers to the sector, as well as for developers of mining platforms such as Bitmain Technologies Ltd, which are launching a public bid for # 39; s purchase.
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 benefit survivors, provided that the Bitcoin price does not fall too fast.
Read: Bitcoin is down 75% in 2018 while it's getting closer to $ 3,500
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