Mining Industry in China Suffers From Loss Due To The Collapse of Bitcoin Price

One of the biggest crypto mining pools, F2Pool, has posted in Weibo that due to significant fall of Bitcoin price, and other altcoins as well, crypto mining operation are selling off the equipment. What is more important, the selling is carried out not by units but by kilos.

The Bitcoin price reached its low, less than $4000, last weekend, it is about 80 percent lower than in December 2017. This influenced the whole mining industry in itself, thus, F2Pool reported the cost of maintaining and operating such equipment is higher than the profit of mining using it.

Let us look at the figures. If one machine costed $2885 one year ago, now the price decreased to $144. It is just 5% of its original value.

The report emerged just in the middle of a so-called “hash war”. About 10 days ago, Bitcoin Cash blockchain split into two new chains, this fact is known as “hard fork”. Supporters of these two chains are deploying big amounts of mining powers to make their chain into the dominant network.

According to Finance Magnates, some people, one of those is Craig Wright, who publicly identified himself as Satoshi Nakamoto, reckon this “hash war” is at fault for decreasing the cryptocurrency prices on the whole market, since large amounts of Bitcoin may be being sold off to pay for rented hash power.

We remind you

The Forecast of Bloomberg Analysts: Bitcoin Rate Will Drop to $1 500

Subscribe to The Coin Shark news in Facebook: https://www.facebook.com/coinshark/