China: Crypto Miners Sell off Mining Devices ‘by Kilo’ Amidst Market Decline

Chinese crypto miners are reportedly promoting their mining tools “by kilo,” as they’ve reached the “shutdown price” amidst the current market crash.

Cryptocurrency mining operations in China are reportedly promoting mining machines by weight, versus worth per unit. This selloff was reported by native Chinese crypto outlet 8BTC Wednesday, Nov. 21, with regards to the cryptocurrency mining pool F2Pool.

Cryptocurrency markets skilled widespread decline all through final week, with Bitcoin (BTC) declining to as little as $4,300 per coin.

The decline has resulted in the same drop in mining profitability and compelled Chinese operators to promote their mining units at a loss, based on 8BTC. The information outlet has reported that the miners are being offered “by kilo,” citing a put up made by the founding father of F2Pool on the Weibo microblogging platform.

Crypto miners are reportedly particularly desirous to promote the older fashions, together with Antminer S7, Antminer T9, and Avalon A741, as these have reached their “shutdown worth.” According to native Chinese outlet Tencent News, the earnings from mining are not sufficient to cowl electrical energy and different related prices.

The market droop has reportedly affected largely small and medium-sized mining operations within the Chinese areas of Xinjiang and Inner Mongolia. There, 8BTC experiences, some mining machines are being offered on the second-hand marketplace for merely 5 p.c of their unique worth. A mining machine purchased at a worth of as much as 20,000 yuan ($2,885) a 12 months in the past is reportedly at present offered for simply 1,000 yuan ($144).

Bitcoin’s worth has stored falling, together with the remainder of the crypto market, for the reason that exhausting fork community improve of Bitcoin Cash (BCH) that happened Nov. 15. The replace has led cryptocurrency exchanges world wide to droop BCH trading and withdrawals.

Earlier this month, Bitcoin mining big Bitmain introduced plans to achieve out to native mining farms within the coal-rich province of Xinjiang, and deploy round 90,000 Antminer S9 units within the area. Bitmain’s transfer is reported to be a strategic one within the computing “energy battle” related to the BCH exhausting fork.

At press time, the crypto markets have calmed down, with many of the prime ten cryptocurrencies seeing solely gentle losses. BTC has at the moment hovered between $4,450 and $4,630.

In September, the CEO of F2Pool printed an infographic that indicated that if Bitcoin worth would attain decrease than 36,792 Chinese yuan (about $5,376), mining the cryptocurrency with an Antminer T9 would turn into unprofitable. In the case of an S7 mannequin miner, the break-even level amounted to a considerably increased Bitcoin worth level of about 79,258 yuan (about $11,581).

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Source: BTC Upload