Recent reports have come out this week saying that crypto mining operations were selling off their mining equipment by weight rather than by unit since the market has entered its current state.
With the crypto markets losing billions over the past few weeks and Bitcoin reached as low as $4300 (currently priced around the same region). The decrease in market caps across the whole crypto market has had an impact on the profits of mining. F2Pool and other crypto miners have allegedly been selling off their equipment since the cost of maintaining and operating the equipment are higher than the money earned by mining.
It has been reported that the miners have been trying to get rid of the older pieces of mining equipment. Some of the machines such as the Antminer S7 and the Antminer T9 are being sold for just five percent of their original value. One machine was worth just under three thousand dollars a year ago but now it has been sold for $144.
The report comes after the hash war which included the different opinions on the future of Bitcoin Cash network. The Bitcoin Cash blockchain split into two new chains as the result of a software upgrade, also known as a hard fork. Enthusiasts of each chain are renting and deploying huge amounts of hash power (mining power) to ensure that their chain makes it into the dominant network.
As reported by Finance Magnates, many analysts have instantly pointed the finger to the hash war for much of the price slippage in the digital currency markets. It is suspected that the volume of hash power that giant mining companies removed from the Bitcoin network in order to support their chosen side of the Bitcoin Cash argument has done some major damage to the price of Bitcoin but the two might not even be connected.
Craig Wright has taken to Twitter to give his thoughts stating the following:
To all BTC miners...— Dr Craig S Wright (@ProfFaustus) November 14, 2018
If you switch to mine BCH, we may need to fund this with BTC, if we do, we sell for USD and, well... we think BTC market has no room... it tanks.
Think about it. We will sell A Lot!
And, have a nice day
(BTC to 1000 does not phase me) pic.twitter.com/oUScEahtWc
What are your thoughts? Let us know what you think down below in the comments!