According to #F2Pool, the third largest mining pool, between 600,000 and 800,000 #bitcoin miners have shut down business. They have shut down at a #rapid #pace and done so by mid-November.
Why have bitcoin miners shut down?
Mao #Shixing is the founder of F2Pool and told his estimates on the number of miners that have shut down on different #metrics. These metrics consists of the total #hashrate drop and the average hash power of older mining machines that see losses at current #bitcoin price levels.
Blockchain.info provides data from the entirety of the Bitcoin #blockchains hashrate. In simple terms, the data capture the aggregated computing #power on the world’s first blockchain. It has dropped from around 47 million tera #hashes per second (TH/s) to 41 million. The fall happened from 10th of November to the 24th of November and represent a 13 per #cent decline.
According to F2Pool, the third largest #mining pool, between 600,000 and 800,000 bitcoin miners have shut down #business. They have shut down at a rapid #pace and done so by mid-November.
Shixing explained that the decline of #miners happened because of that many used older #models. Models such as Antminer T9+ made by Bitmain and #AvalonMiner 741 by Canaan Creative. These models only have a hash power of 10 TH/s and are losing money at the current value of bitcoin, according to #F2Pool.
F2Pools mining activity has fallen dramatically during the past #weeks. Mao revealed that the hashrate of the #network on F2pool, accounting for around 11.4 per cent of the total network, has declined over 10 per cent in the last few #weeks.
“It’s hard to calculate a precise number of #miners connected to us that had unplugged. But we saw over tens of thousands of them [shut down] in the past several #days based on conversations we had with larger #farms that we are in regular contact with,” he added.
What is contributing to the #shutdown of miners?
Recently, Mao shared a #picture of a man packing computer gear into boxes on his Weibo social media #account. He captioned the post with “shutting down is not an #option, now have to sell by the #kilos”. “ Those miners being sold by the kilos are even older and obsolete models that aren’t #usable anymore. So people are selling to #recycle them like copper instead of for further mining purposes,” Mao explained.
Mao explains that several #factors are contributing to the shutdown. One of them is the market #decline which was triggered by the bitcoin cash hard fork. Winter is also coming in China which means that #electricity price will rise. Another reason is that newer #mining models are out in the market which makes older #machines non-competitive. The top cryptocurrency bitcoin sank below $4,000 and is now posing problems for #mining farms, especially those using #machines of 2016 and 2017 that has lower productivity, Mao explained. He added:
“All these factors are overlapping right now which led to this recent phenomenon.”
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