Nov 27, 2018 07:00 UTC
Nov 27, 2018 at 07:00 UTC
Recent Slip in Crypto Market Questions The Health Of Crypto Mining Industry
Since Bitcoin price is continuing to slip to its lowest point in over the year, a recent inquiry into the dipping hash rate has prompted some to about crypto mining industry.
A tweet, on November 25th, went viral expressing hundreds of cryptocurrency mining rigs collecting dust-flipping the story on the energy-hungry machines grinding away 24/7 as well as posing a crisis to the environment. Instead of out of a philanthropic dampening, the formerly lucrative crypto rigs were reportedly being sold in loads for just pennies on the dollar, a reflection of having far digital currency has come down over the last two weeks.
As indicated by Bloomberg, the falling rate of the network hash rate of Bitcoin is a simple method for evaluating the computing power dedicated to the currency. As peaking at an all-time high for the hash rate in August 2018, the computing resource of the cryptocurrency has declined 24%, mirroring the slumping valuation of the coin to a lesser degree.
While a bit of the dipping hash power is indicative of the miners that are jumping for searching more lucrative crypto mining, it also points to a general selling out for the rig-owners whoa re not able to benefit from the slumping price of Bitcoin.
According to the report by Bloomberg –
“The break-even cost to mine a single Bitcoin using Bitmain’s Antminer S9 rig was estimated at $7,000 in a Nov. 16 report by Fundstrat Global Advisors, though the level is probably lower for some miners with access to cheap electricity and equipment.”
Where many investors fret over the dismal outlook for the Bitcoin as well as Altcoin prices, there could be a silver lining in term of less scrupulous parties being weeded out of the industry.