Bitcoin mining getting harder and less profitable and ASIC is constantly updated. But what happens to the old?
Chinese miners in the city of Shenzhen has appeared with hundreds of useless Asimov that they can’t even sell, according to the article, tech.qq.com a local media source.
Machine for dust collection
This is a sad story of the electronics market in the province huaqiang North, Shenzhen. Asik stacked behind the market stalls and are sold for two-thirds their original price.
One of the traders said that business thrived in the last year, but now hard to sell even parts of Asimov.
One resident of Shengena, Lee Canciani, left work at the company at the end of last year and has invested in mining, despite the objections of his family. He bought about a hundred miners at a cost of hundreds of thousands of dollars.
However, he soon discovered that his new car is already obsolete, and the difficulty of mining increased. It ashiki was in need of modernization, but he could not afford it.
By June, its profit dropped by 90 percent. His brother, who did the same, lost everything.
When Lee decided to sell the equipment, he found that the more they do not need anyone. So far he sold only two, and it’s discounted.
The other person in a similar position, Yao Xu, have resorted to dismantling their AAV and sell components separately to recoup more of their losses.
According to Trustnodes, the difficulty of mining bitcoin has increased six times this year alone, and reward for the completed unit was dropped four times. Resulting ASIC device manufacturers are constantly improving their products.
However, this embodiment of Moore’s Law, with serious economic consequences; people use ASIC to make money, and the new generation of ASIC make the previous obsolete.
The arms race
In September, for example, Ebang Communication, has released a new generation of devices that can process from 30 to 44 trillion hashes per second. And they played catch-up with Bitmain and Canaan Creative, two of their local competitors.
CEO of Bitmain Jihan Wu said at the world summit Digital Mining in Tbilisi last month: “If somebody make a better chip in the future, we will do even better, Bitmain will continue to develop the best AAW in the world.”
But more importantly, it can be argued that the development of crypto systems in the long term is not a viable business.
All three of the aforementioned Chinese companies are planning to go to Hong Kong in connection with remarkable growth in the past year — Bitmain has estimated up to $ 18 billion.
But the profitability of cryptocurrency production will only fall. The natural answer is to upgrade equipment and fight to control as much of the market, but with a large number of competitors constantly entering the market, everything can get to the point where profitability will be more impossible.
It should be noted that Bitmain diversified, for example, they invest in things like AI and advertising. But their dreams of international expansion suffered from undermining China-us relations; in August, the head of the state has imposed tough new tariffs on Chinese electronic goods.