It seems the global cryptocurrency downturn is prompting Bitcoin mining hardware suppliers around the globe to reduce machine costs, according to sources on the South China Morning Post (SCMP).
Steven Mosher, from Canaan Creative — the world’s second-largest crypto mining rig producer — is offloading Avalon-brand machines at $200 each. Canaan’s Friday sale was a major price-cutting event for this China-based firm, which previously priced its top model, the AvalonMiner 921, at $742.
In an email, Mosher compared the price adjustment to a kind of ‘Black Friday’ special.
“This price drop is like hitting fast-forward on Black Friday sales.”
Bitcoin miners are hit hard by diminishing profits due to Bitcoin’s low rates. Just last week, the F2Pool founder claimed more than 600,000 miners have ceased operations since crypto prices plummeted.
“We’re in a market purge phase. Only a small number of operations will survive it,”
Malachi Salcido, leading figure at Salcido Enterprises, one of the largest U.S. Bitcoin mining outfits, explained in a Bloomberg report .
For most miners, Bitcoin Bitcoin must exceed $4,500 for miners to profit. With current dips, about 100,000 rigs have shut down, according to Autonomous Research LLP and Fundstrat Global Advisors LLC. Data from F2pool’s This is further backed by the miner revenue index, confirming that most shutdowns involve outdated models like Canaan’s AvalonMiner 741 with its 7.3TH/s hashrate and 1150 Watts consumption. These rigs currently suffer $2.30 losses as noted by miners’ income estimate sites. ASIC Miner Value.
The Bitcoin network’s total hashrate has also seen a decrease. Data from blockchain.info shows a 13% reduction in aggregated blockchain computing power, dropping from 47 million TH/s to 41 million TH/s.
Mining Rigs Sellers
In Huaqiangbei, China, a known electronics trade hub, crypto crash effects are felt by mining gear sellers. Once bustling, now only a few stores remain open from the hundreds selling mining rigs.
At press time, Bitcoin is trading for $3,800 Meanwhile, the crypto market globally lost nearly $12 billion in market cap, and Bitcoin's daily trading volume plummeted from around $6 billion to $5.8 billion.
Canaan Creative hasn’t set an expiration date for their generous discount but remains hopeful about Bitcoin’s future.
The Bitcoin Cash Hard Fork
Bitcoin Cash (BCH) spun off from Bitcoin itself in August 2017 via a hard fork to tackle Bitcoin’s scalability issues, as its users wanted more than just speculative value.
In mid-November, the BCH community saw a ‘hash war’, resulting in two factions with different visions for the fourth-largest crypto. These groups, BCHSV and BCHABC, split on November 15, forming blockchain segments to assert their rules' reliability.
This division caused a sell-off as investors fearing market stagnation withdrew BTC and BCH holdings.
