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Bitcoin (BTC), Cryptocurrency-While Bitcoin prices continue to fall to their lowest point in more than a year and all eyes turned to BTC reach $ 3,000, a recent investigation into the hash rate down has led some to Ask about the health of the crypto-mining industry.
On November 25, a tweet became viral by showing hundreds of cryptographic mining platforms that collected mostly dust – turning the tale of energy-consuming machines grinding 24 hours a day and posing a problem for the environment. Rather than attacking a philanthropic paradox on the part of environmentally conscious owners, cryptographic devices, once very profitable, would have been sold at ridiculous prices, but the cryptocurrency has greatly diminished for two weeks and throughout 2018.
Latest pictures – After BTC crashed, $ 4,000 … Chinese miners sell S7 at CNY 5 per pound pic.twitter.com/nV2Nk8lsLw
– Dovey Wan ? (@DoveyWan) November 25, 2018
While some had initially denounced the photo, claiming that it was a smug propaganda aimed at stoking fire from the trash cans of the crypto markets, EWN reported on other outlets expressing a similar experience by attending the sale of mining platforms at discount prices. While cryptocurrency prices have hit their all-time low in 2018, it is possible that new entrants into the industry and / or those seeking to profit from mining are closing down, which could eventually benefit crypto. the long term.
As reported by Bloomberg, Bitcoin's network hash rate reduction is a simple method to evaluate the computing power dedicated to the currency. Since it reached an all-time high for the hash rate in August, the computing resource has dropped 24%, reflecting the depreciation of the value of the piece to a lesser extent.
Part of the hash power indicates that miners jump by boat looking for more profitable crypto-extraction, but it also indicates a sell-off for rig owners who are no longer able to profit the fall in the price of bitcoin, by a combination of expensive electricity bills and the initial purchase cost of the platforms that were in high demand a few months ago. According to Bloomberg's report,
"The equilibrium cost of extracting a single Bitcoin using the Bitmain Antminer S9 platform was estimated at $ 7,000 in a report released November 16 by Fundstrat Global Advisors, although the level probably lower for some miners with access to electricity and cheap equipment "
The decline in demand for expensive mining platforms has Nvidia the most difficult of the traditional sector, with forecasts of turnover and general prospects for the largest chip maker in the world in free fall in the last quarter of the year. However, the growing interest in exploiting crypto-extraction, particularly for those purchasing over-purchased rig equipment, could be beneficial to the industry in the event of a recovery.
Since last December, when Bitcoin had reached the 20,000 euro mark, the cryptocurrency industry has been inundated with short-term players seeking to capitalize on excitement without contributing to overall development . There is no more glaring example than Long Blockchain Corp, the iced tea manufacturing company that has moved up a gear to continue operating cryptocurrency – in addition to a name change of the company – following the sharp rise of last December. However, as crypto prices subsequently collapsed, the company was forced to go back and find a more profitable avenue than mining, which resulted in NASDAQ delisting the company. because of its small market capitalization.
While investors worry about dark prospects for the prices of Bitcoin and Altcoin, there could be a boon in that less-scrupulous parties are being eliminated from the industry.
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