600K Bitcoin Miners Shut Down in Last 2 Weeks, F2Pool Founder Estimates
According to the third largest mining complex, bitco miners have been shut down between 600,000 and 800,000 since mid-November amid falling prices and hash rates.
Mao Shixing, founder of F2pool, estimates that CoinDesk has taken into account the overall hash rate degradation and average hash power of the old mining machine, which has been struggling to make a profit.
According to data from blockchain.info, the total hash of the bitcoin network, which captures the aggregated computing performance in the world's first block chain, rose from about 47 million terahertz (TH / s) on November 10 to 41 million 24 – nearly 13 %.
Mao explained most of the miners who stopped working with Bitmain and Canal Creative on older models like the Antrimer T9 + made with AvalonMiner 741. These miners have an average hash of 10 TH / s and are estimated to be losing money according to F2pool's miner's revenue index.
In fact, the bitcoin hashrate of F2pool, which accounts for about 11.4% of the entire network, has declined by more than 10% in recent weeks.
"It is difficult to calculate the exact number of miners connected to us, but we have seen tens of thousands of people over the past few days, based on our conversations with the larger farms we are in contact with on a regular basis." .
"This is happening in China miners."
On November 20, Mao Zedong boxed a picture of a man packing computer equipment through a Weibo social media account. "Closure is not an option and should now be sold in kilos."
Although this post was widely accepted recently that even the vintage mine equipment was sold at kilograms in China, Mao told me that he was half-joking when he wrote it.
"Miners sold in kilograms are older, useless models that are no longer available, so people are selling them for recycling copper-like [them] instead of more mining purposes."
Winter is coming.
Mao said that there are several factors that contributed to the division between mining companies. Bitcoin cash hard fork on November 15 China's increased electricity costs; And Chinese manufacturers are still competing to upgrade their products, making older machines less competitive.
"All of these factors are now superimposed, resulting in this recent phenomenon," Mao said.
As winter comes into China, hydroelectric power stations are drier in dry seasons, where electricity rates have doubled in the summer.
Mao said that in the summer, the cost of electricity in the Southwest region, a mountainous region of China with many mine farms, would be less than 0.2 yuan ($ 0.029) per kWh / h. However, at this time of year, it will go above 0.3 yuan ($ 0.043).
Other fossil-fuel power plants, such as China's Xinjiang, could produce electricity at a faster rate, but the overall cost is still about 0.28 yuan ($ 0.04) per kWh / h, Mao said.
With bitcoin prices dropping below $ 4,000 in the last 13 months, mining farms using machines produced in 2016 and 2017 will not drop productivity and even break, Mao added.
Obviously, the fact that mining farms are picked does not necessarily mean they are completely out of the game.
"Bitcoin mining is always a dynamically adjusted process," Mao said. If the hash rate drops, mining becomes difficult. According to the latest data, BitCorp mine difficulty has already decreased slightly by 5% over the last few days.
Mao Zedong has concluded that this dynamically adjusted process can give incentives for people who do not throw towels to stick around.
"Bitcoin's mine difficulty is usually delayed by about 14 days [following hashrate change]. After this ripple, players who choose to stay can enjoy a better life."
Mao Shixing Image courtesy F2pool
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