Miners sell equipment
Against the background of the decline in the rates of cryptocurrencies, their extraction ceases to be profitable. Miners put up for sale equipment for the extraction of digital currencies.
Miners are suffering
It is not difficult to calculate the profitability of the miners' business. They have equipment with a certain computing power that allows them to find solutions for blockchain tasks. The more powerful the equipment, the more solutions it will find. On the one hand, this will allow miners to mine more cryptocurrencies, and on the other hand, the more powerful the equipment, the more expensive it is.
As long as the value of the extracted digital coins allows you to cover the costs of electricity, equipment maintenance, taxes and other related costs, taking into account depreciation, the business can be considered profitable. But as soon as the value of cryptocurrencies falls below the cost of their production, there is no point in continuing to operate mining devices. After all, their work will generate net losses.
Many miners are faced with a situation where the surest solution from the point of view of business is to stop activities. Players in the cryptocurrency mining business who have financial reserves to cover current expenses (wages, rent, etc.) can simply wait out difficult times. Those who did not have time to accumulate a financial reserve are forced to resort not only to stopping activities, but also to selling their equipment.
The equipment is being sold out
Many miners, hoping for a quick rebound in the market, continued to work even when the rates of cryptocurrencies fell below the cost of their production. This led to the formation of arrears in the payment of electricity bills, wages, rent payments.
The rebound did not occur, and such miners are forced to sell their property in the form of mining devices to cover their obligations.
Mining devices (video cards or ASICs) remain effective for mining cryptocurrencies for two years after they enter the market. Then, as the complexity of mining increases, their efficiency slips to zero.
Owners of mining equipment who expect a protracted crisis in the cryptocurrency market are trying to get rid of their devices before they depreciate over time.
Another factor influencing the growth of sales of mining devices is the announced transition of the Ethereum blockchain to the Proof-of-Stake protocol from the Proof-of-Work protocol. This transition will lead to the fact that miners will not be needed to calculate blocks in the Ethereum blockchain. Accordingly, the equipment that was used for mining Ethereum, its owners are trying to either use it for mining other digital currencies, or sell it.
Electricity consumption, which was spent by the largest Ethereum mining farms, fell by 50%. Following cheap video cards, the fall of cryptocurrencies can also make electricity cheaper.
The hashrate of the ETH network has fallen by 20% in less than just a month. While there is complete order in the Bitcoin network, it says that miners are leaving Ethereum mining.
All these factors have significantly increased the supply of mining equipment both on the world and on the Russian market. The cost of devices in Russia decreased by 40%. It is also necessary to take into account that the equipment was purchased at a dollar rate higher than the current rate. The strengthening of the ruble also contributed to the cheaper mining equipment.
The cheaper equipment allows new players to enter the mining market who believe in the restoration of cryptocurrency quotes. Gamers are happy with the price reduction, who can now purchase powerful video cards for almost half the price.
https://coin-signal.com/cryptonews/miners-sell-equipment/
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