Bitcoin (BTC), Cryptocurrency-As prices for Bitcoin continue to slip to their lowest point over a year, with all eyes on BTC hitting $ 3,000, a recent inquiry into the dipping hash rate has led to the health of the crypto mining industry.
On Nov. 25, a tweet went viral showing hundreds of crypto mining rigs collecting dust-flipping the narrative on the energy hungry machines grinding away 24/7 and posing a crisis to the environment. Cryptocurrency has fallen over the last two weeks and over 2018. Rather than out a philanthropic dampening by eco-conscious owners, the formerly profitable crypto rigs were reported
Most updated footage – After BTC crashed blow $ 4000 … miners in China are selling S7 for 5CNY for pound 🤣🤣🤣 pic.twitter.com/nV2Nk8lsLw
– Dovey Wan 🦖 (@DoveyWan) November 25, 2018
While being originally denounced the photo, claiming that it was doctored to add fuel to the dumpster fire of the crypto markets, EWN previously reported on other outlets expressing a similar experience witnessing mining rigs for sale at discount prices. With cryptocurrency prices reaching their lowest point in 2018, with no end in sight except for a possible outflow at $ 3000, newcomers to the industry and / or those looking for profit through mining alone now closing shop-which may end up benefiting crypto in the long run.
As reported by Bloomberg, the falling rate of Bitcoin's network hash rate is a straightforward method for evaluating the computing power dedicated to the currency. Since peaking at an all time high for hash rate in August, the computing resource has fallen 24%, mirroring the slumping valuation of the coin to a lesser degree.
Bitcoin, through a combination, while it is dipping into a profitable crypto mining, it also points to a general selling out for rig-owners of costly power bills and the initial price. According to the report by Bloomberg,
Bitcoin's single-bit-to-mine cost-to-mine at Bitmain's Antminer S9 was estimated at $ 7,000 in at Nov. 16 reports by Fundstrat Global Advisors, though the level is probably lower.
The falling demand for costly mining rigs has Nvidia falling in the final quarter of the year. However, the dipping interest in crypto mining, particularly for those overbought on the rig.
December 2009, which saw Bitcoin hit $ 20,000 on the tail of a bull run, the industry of cryptocurrency has become inundated with short-term players looking to capitalize on the excitement without contributing to the overall development. No more of an egregious example exists than Long Blockchain Corp, the iced-tea making company which shifted gears to pursue cryptocurrency mining-in addition to a change in the company name-following the bull run of last December. However, the company was forced to go back to a more profitable avenue than mining, a turn of events that was delisted by NASDAQ due to low market capitalization.
While investing in the outlook for Bitcoin and altcoin prices, there could be a silver lining in the form of less scrupulous parties being weeded out of the industry.