Chinese miners go out of business because of falling market

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Mining on small farms in China ceased to be profitable. Local residents say that they are forced to leave this business. The reason is simple: the prolonged bear market of cryptocurrencies.

One of these miners, who calls himself just acknowledged that in the second half of 2017, when the price of cryptocurrency has reached a historic high, he invested hundreds of thousands of yuan in the purchase of nearly a hundred devices. Acquiring equipment, Whether retired from a previous job — from a small financial firm and devoted himself to mining altcoins. Like many others, Lee had hoped to earn “quick and easy” money.

However, the price of bitcoin has experienced a dramatic decline. Lee says:

By mid-June this year, the net profit from my mining business dropped by 90%. One of my friend who mines altcoins, suffered even more, practically losing all of your investment.

After suffering enormous losses, Lee was forced to close the farm and tried to sell equipment using the network platform for trading supported by the electronics. However, this has proved difficult: after he posted an ad, it’s been three months, but no one offered a reasonable price. He managed to sell a miner for 700 yuan (about $105). Local traders electronics is also not interested in his offer. When Lee bought the miners, the demand for them was high even it was scarce. Now, according to Lee, it’s a pile of dusty scrap metal.

Another Chinese miner, who asked to be named MA (Chinese realities are pushing people to the anonymity, especially in such sensitive question as cryptocurrency), told that shut down his farm for the same reason as Lee. According to him, he sold out all available miners — four pieces for 850 yuan (about $125). This amount is less than 25% of the cost of a new unit.

Commenting on the decline in the prices of equipment, MA explained that the device “with ten carahasani per second on a chip”, which was proposed in the beginning of 2018, there are now about 1,000 yuan apiece (about $150).

In addition, the new mining hardware that uses the latest technology (it is increasingly offering a relatively small producers), you can buy much cheaper than used equipment with equivalent processing power.

While the price of cryptocurrencies has grown rapidly, miners were sold in Shenzhen at every corner. Now one of the sellers says:

All equipment for mining is now sold with a discount of 30%. If a customer buys more than one miner, we’re doing an additional discount and provide free power cords and related accessories.

The owner of a local repair shop for a PC Liang Zijun explains:

Retail sellers of equipment for mining and supported components suffering losses due to a significant price reduction on this technique. We usually do not accept it for processing.

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