Over the past few days, videos of crypto mining companies throwing away bitcoin miners on the street circle around. For some, the videos are a hoax, showing the situation in China after a flood destroyed thousands of mining rigs. But in today’s blockchain news, we will explain why this isn’t the case.
Some of the videos come from China where the low energy rates provided decent profit for the mining firms. However after the price dropped, the companies started to feel the pressure from the long bear market. They realized that the miners can no longer make a profit from using the machines and they also believe that these devices can’t ever be profitable again.
While talking to Asia Crypto Today, Hu Jie of Si Hua Mining which is a local ASIC supplier thinks that the videos that circle around the internet are true but, that the miners are dumping older generation devices and that this is a very common practice with technology:
“Of course old models are out of the game, like the picture shows. But that doesn’t represent the majority. Electronics become outdated easily. For example, smartphones like iPhone 3, 4, of course they can be sold by the pound. It’s normal life cycle.”
Unlike GPU chips that can be repurposed, ASIC chips are programmed only for a single application and they can get obsolete much more quickly.
Bitcoin’s hash rate has dropped in the past several weeks but this isn’t concerning according to eToro’s Senior Market Analyst Mati Greenspan.
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