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Bitcoin dropped below $ 4,300 on Wednesday, touching a 13 month low from October 2017, when the price started to move well over $ 5,000. This collapse of prices has caused significant losses for cryptocurrency traders and currency miners.
Some small and medium-sized miners in Xinjiang and Inner Mongolia of China sell their mining machines in the used market. Miners could not cover the cost of electricity by extracting currencies with their old machines.
"Previous mining models, including Antminer S7, T9 and Avalon A741 [mining machines] have already reached the "closing price" – the critical price of BTC below which miners must be closed due to lack of profitability. Ironically, a mining rig is worth only one-twentieth of what was the same period last year, "8BTC reported Wednesday, citing F2Pool, one of China's largest mining basins.
A mining machine bought at a price of about 20,000 yuan ($ 2,885) a year ago is sold for a price between 100 yuan and 1,600 yuan. The discussions on Reddit confirmed that it was difficult to sell these machines even at the low price quoted.
"Almost nobody, rightly, is willing to buy second-hand fans and power supplies from miners, I would not buy parts from a mining rig even with an 80% discount," said a Reddit user on a video that it was loaded onto Reddit, showing a large number of mining machines dumped as scrap. Founder of F2Pool, Shixing Mao, published an image that was trending on Baidu who said that the mining machines were being sold by weight.
In September, Shixing of F2Pool published an infographic showing if bitcoin prices would fall below 36,792 yuan, extracting the cryptocurrency with an Antminer T9 would become useless.
"The price of bitcoin continued to fall after the war with hash cash, while the lack of electricity due to the current dry season in Sichuan and other favorite places by miners makes it even worse for the extraction of cryptocurrencies, "reported the 8BTC.
The update of the bitcoin forex network that occurred on November 15 caused cryptocurrency trade around the world to suspend trade and withdrawals from BCH. The BCH miners suffered huge losses due to this update.
Bitmain, Bitmain mining company, announced plans earlier this month to reach the local mining mines in Xinjiang and install about 90,000 Antminer S9 devices in the region. This Bitmain move was strategic because it would have added to the "hash warfare" associated with the bitcoin cash hard fork.
Giga Watt, a mining company in the state of Washington, declared bankruptcy on Monday. The mining company had estimated assets worth less than $ 50,000, while the estimated liabilities were of the order of $ 10-50 million, according to court presentation.
The price of the bitcoin was $ 4,298, at 11:50 pm Thursday, with a decline of 23% over the last 7 days, with a market capitalization of $ 74 billion, as noted by CoinMarketCap.
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