Crypto miners ‘sold as scrap’, déjà vu for bull-bear switch

Since April, mining hardware prices have fallen by 50%.

The price of global crypto mining hardware is experiencing a plunge since crypto mining clearance policies came out around the world. Under the mining disaster, many mining miners have been forced to shut down and mining equipment is being sold off like scrap on a pound-for-pound basis, a déjà vu with the scene under the 18-year bear market.

According to reports from Odaily, Epoch Times and broadcaster NDTV, mining hardware prices have fallen 50% since April.

Crypto miners 'sold as scrap', déjà vu for bull-bear switch

As the market declined and “mining” activities became less active, many miners wanted to sell their machines to recoup their capital rather than relocate abroad to re-establish their mining operations. As a result, the large number of used machines coming onto the market is driving down prices. It’s a far cry from the “hard to find” boom of a few months ago.

According to the latest news from the Shenzhen mining market, the mainstream Bitmain S19jPRO-100T model is selling for more than 70,000 yuan to around 40,000 yuan, while used machines of similar models are selling for just over 30,000 yuan. The sharp turnaround in the market has disappointed many sellers.

Bitmain, the global mining hardware giant, said last week that it had decided to temporarily stop selling stock globally in order to help smooth the industry’s transition.

As of 10am on June 30, BTC’s average arithmetic power fell to 85.91 EH/s, compared to a previous high of 180 EH/s. In less than two months, the entire network’s arithmetic power fell by more than half; ETH’s average arithmetic power fell to 479.94 TH/s, continuing to slump, and LTC’s average arithmetic power fell to 213.34 TH/s, recovering slightly from yesterday’s six-month low.

Also according to BTC.com data, the Bitcoin network will see its next difficulty adjustment on July 1. It is expected that the difficulty will be 15.04T after the adjustment, compared to the current difficulty of 19.93T, so the drop will be 24.54%.

Algorithm power will need to go to sea as soon as possible if it is to return to the highs of a few months ago, however, going to sea is only suitable for the long-term layout of big miners. It’s safe to say that most miners will leave the mining sector for good. Small miners who want to continue with home mining will also have to face further cost increases as new electricity price increase notices are issued.

For fluke speculators, mining for bitcoin is a risky business under the current policy, as electricity providers are relatively easy to spot. And with teams of local inspectors conducting inspections, the chances of being discovered are higher than ever, making mining riskier than ever.

It is foreseeable that the global mining industry will be in a state of slow recovery of arithmetic power for a longer period of time to come. For now all most miners can do is perhaps wait, or dump their machines.

Mining is an asset-intensive industry, so when the market shifts from bull to bear, it is easy to lose a lot of money if you don’t step on the rhythm; if you choose to hold on, you will have to face several years of suffering, and it will be a big test of your own strength whether you can hold on until the next bull market.

Is there a better solution? You can both traverse the bull and bear and enjoy the huge dividends of crypto assets and blockchain industry development.

The answer is yes, that is the combination of blockchain and real economy!

At present, the policy strongly supports “blockchain + entity”, and everything is based on making the entity bigger, and blockchain empowers the entity economy. Under such circumstances, the construction work carried out by the entity through blockchain will be the future trend, and Isofire is working hard on this.

It is not easy for crypto mining to go abroad, and miners are in and out of the market, which may be a good thing for crypto networks in the long run. When standing to think about the future, the only way to stand invincible in the long run is to be brave enough to change your thinking to grasp the trend.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/crypto-miners-sold-as-scrap-deja-vu-for-bull-bear-switch/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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