[2018-11-23] Bitcoin Miners Ruined by Downturn, “Selling Hardware by the Pound”;

[cybersofts]

Bitcoin Miners Ruined by Downturn, “Selling Hardware by the Pound”; Giga Watt Files Bankruptcy



Miners have been decimated by the market downturn. In response, miners have started decommissioning hardware, mothballing rigs, and even selling hardware by the pound.

Bitcoin and cryptocurrency proof-of-work (PoW) mining is a controversial topic. Mining is a process where computers continuously solve a difficult algorithm in exchange for cryptocurrency. This exchange consumes a massive amount of electricity, but also secures and processes transactions on the Bitcoin network.

This excessive consumption of electricity is intentional. Decision-making power in Bitcoin is based on the agreement and consensus of miners. By making it very expensive to gain majority control of the Bitcoin network, the coin is able to remain more decentralized and more secure from hacking.

By the Numbers
Based on estimates from the most sophisticated Bitcoin miner, the Antminer S9i, mining a single Bitcoin takes roughly 51,000 kWh, the equivalent of one day’s electricity consumption for 1700 residential homes.

At a standard electricity rate of $0.12 per kWh, mining one Bitcoin costs $6100.

That said, the recent drop in market prices is cause for concern. Lower Bitcoin prices make it less profitable to mine. Lower profitability results in less miners and the miners that remain are typically large-scale operations that can keep costs down.

Reference: https://cryptoslate.com/bitcoin-miners-ruined-by-downturn-selling-hardware-by-the-pound-giga-watt-files-bankruptcy/

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[squatter]

At a standard electricity rate of $0.12 per kWh, mining one Bitcoin costs $6100.

That said, the recent drop in market prices is cause for concern. Lower Bitcoin prices make it less profitable to mine. Lower profitability results in less miners and the miners that remain are typically large-scale operations that can keep costs down.

I'm not too concerned. Hash rate is responding to the price decrease in a pretty orderly fashion. On the last adjustment, difficulty dropped 7.39%. On the next adjustment, difficulty is slated to drop another 7.60% so far.

If price keeps dropping, it'll keep getting cheaper to mine. It's funny how these articles always talk about profitability like it's based on a static price level.

[KryptoKai]

Bitmain needs to create something more mining efficient, or people simply need to switch operations to use a cheaper form of energy. If they are willing to invest in a renewable form of energy then mining costs will be minimal.

[1Referee]

What a shit article. Bitcoin's hashrate dipped just under 36EH like two days ago, but is now hovering around 47EH.

https://www.coinwarz.com/network-hashrate-charts/bitcoin-network-hashrate-chart

Situation as it is; weak miners out, competitive miners fill up their gap and scoop up all the Bitcoins.

I knew news outlets were easily fueling panic, but this is absolutely nuts. The amount of bearishness going through the market is insane, and I can't detect any $20,000 before the end of the year noobs anymore. When everything turns bearish, smart minds start loading up on Bitcoin.