Crypto Miners Sold By the Kilo in China
November 24, 2018 12:01 pm
The mining operators in China are selling off their hardware by weight instead of per unit price. This is due to the bearish run of the cryptocurrency market, which has observed another steep drop in the price of Bitcoin and other cryptocurrencies.
Last week, the cryptocurrency markets have observed the worst decline of 2018. At the time of writing this news, Bitcoin is trading at $4,340 per coin.
As crypto currency mining is dependent on electricity prices and the value of cryptocurrency, miners across the globe are feeling the blow of this price drop. This has forced dozens of miners to sell off their mining rigs at tremendous losses.
As per a post published by F2Pool on Weibo, the microblogging platform, the losses have resulted in these companies selling their mining rigs “by kilo”.
The miners are enthusiastic about selling older hardware such as the Antminer S7, Antminer T9, and Avalon A741. This is because their mining capabilities render them unfit for profitable mining. According to Tencent News, the earnings gained from mining no longer cover the power and associated costs, rendering this hardware useless.
This downtrend in the market has affected most small and medium-sized operations located in Xinjiang and Inner Mongolia regions of China. In fact, some miners are being sold for less than 5 percent of their original value. A mining rig that was bought for 20,000 yuan ($2,885) a year back is now being sold for under 1,000 yuan ($144).