Chinese Firms Selling Crypto Mining Equipment by Weight
Chinese crypto mining ventures are selling off all of their old equipment by the weight rather than by the unit.
The bell may not yet be tolling for Bitcoin, but it seems to be doing so for many of the ventures focused on mining it. Chinese companies, in particular, have resorted to selling off their older ASICs in any way they can.
Citing a Chinese media report, Finance Magnates said that F2Pool and others were offloading their equipment by the kilo due to the falling price of Bitcoin (BTC), which has dragged mining profitability to rock-bottom levels.
ASICs like the Antminer S7, Avalon A741, and Antminer T9 no longer cut it in a world where Bitcoin prices have plunged below the $4,500 mark. In two years, when the BTC mining reward will halve, currently used equipment like the Antminer S9 may not be able to ensure the sustainability of these firms.
The problem stems partly from the Bitcoin Cash (BCH) hash wars, due to which Bitmain and others resorted to renting crypto mining rigs to help prop up the hashrate on their side of the battlefield. Ultimately, the Bitcoin ABC version came out victorious, but the cost was too great.
Many of these major players had to sell BTC to pay for their mining efforts, resulting in losses all across the board. This may have been the most costly hard fork battle in the history of cryptocurrencies.
In the aftermath, Bitcoin’s price sank below $5,000, and mining firms ended up in the situation they currently face.
The drop in the BTC hashrate was inevitable considering that the block reward will halve in 2020. This time, it happened sooner than expected, and while not a natural event, it is also not a catastrophic one.