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After the high note with which the cryptography is over 2017, 2018 was a tough reminder those cryptographic markets remain at best unpredictable. From its peak to nearly $ 20,000 in December, the bitcoin has spent most of 2018 steadily declining. Today, the price of bitcoin is closer to $ 3,000, and the fall has caused a chain effect that has hit every stakeholder in the market.
Cryptographic miners, who rely on the price of bitcoin and other cryptocurrencies to remain high enough to remain profitable, are now left in the bag in more than one way: expensive rigs and GPUs worth thousands and bitcoins that they mined with these tools. Now that prices have remained firmly below break-even rates for several months, the miners must reflect if they can continue to finance increasingly expensive operations or they should simply cut losses and run away.
However, the simple cost of building these platforms, from purchasing and replacing parts to the GPU proxy sufficiently good to be effective, makes the game a difficult issue. Even so, some miners are trying not to abandon their existing configurations, but rather turn them into something profitable while the market adapts to its new reality. With some innovative alternatives out there, miners could soon abandon their crypto chains and diversify operations.
Loss extraction
In early December, bitcoin blockcoin observers noted that the hash difficulty of the original cryptocurrency had decreased by over 15%, the second largest contraction since October 2011. The difficulty is set dynamically and responds to the actual fluctuations of hash rates, so a drop reflects the activity on the network. In fact, since November, the hashish rate of Bitcoin has decreased by more than 30%, reflecting an exodus of miners from the market. The cause of this mass flight is the continued decline in mining revenues, which nearly halved in December compared to November levels.
Even the short-term prospects are not optimistic. Despite the enthusiasm of some confident industry observers, the smaller miners are facing a very real crisis right now, and the promise of future price bumps may not be enough to make them all work on the bitcoin blockchain. For miners, energy, resources and other overheads, running at a loss is not favorable in any situation. Despite the miners have received revenues of 4.7 billion dollars in 2018, minor mining operations can not keep up with larger configurations that have slowly planned market control.
Instead, many smaller miners might try to make a soft landing elsewhere, without having to sell the equipment they have already purchased and for which they are hooked. The problem with the resale is that many of the GPUs and ASIC processors used have significant wear on them, and the inflated market in which they were purchased is back on the ground, affects heavily on component prices.
Branching Out
The only commodity that most miners have to offer, in case they choose to move away from mining, is raw computing and processor power. The increasing complexity of hash and verification blocks means that most data mining platforms now have gigabytes of computational power that can be used in a variety of ways, especially since most of them come from GPUs and not CPUs. This seems abstract, but a recent increase in the need for heavy computing capacity resulting from emerging technology has made it a reality much more feasible. Technologies such as artificial intelligence, machine learning and neural networks require much more power than that offered by individual computers at reasonable prices. Several companies, both in bulk and in bulk, have begun to specialize in renting computing power to needy organizations and users.
On the blockchain, there are several projects that take a new approach to the problem of calculation. Tataufor example, it is trying to reduce the cost of super-computing by exploiting blockchain GPU networks. The company platform allows users to monetize the existing excess GPU capacity and lease it to those in need. The company is focused on IA, a notoriously resource-intensive technology that is becoming vital in many areas. For miners who continue to shut down their plants and operations, the switch to computational power would take seconds and could be a good alternative for periods in which mining is unprofitable.
Others have also offered similar solutions with different areas of interest. Leonardo Renderfor example, it focuses more on providing computing power for graphic work and 3D modeling. The company is also more focused on providing a ready solution, as it has contracted the services of a GPU farm to support its initial launch. Golem it offers computational skills for a variety of jobs, although it is largely aimed at more academic projects. However, in all cases, the use of blockchain means that miners can easily convert their operations back and forth, which means they can be ready to get back into play if cryptic prices recover.
Diversify or sink
The reality of cryptographic ministries is that while the market remains unstable, so will their fortune. While it can be very profitable to continue digging into a bull market, the long run of losses that the industry is experiencing makes it difficult to generate revenue. In addition, the status quo favors the biggest miners who can buffer their costs and remain operational even in the descending phases.
For smaller miners, the survival response can be based on their ability to diversify their computing power without having to declare the costs and efforts of an irrecoverable cost. By finding projects and platforms that exploit their existing tools, the miners can overcome the current storm and still be ready for a future where the crypt rebounds.
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