Business 22 November 2018

Paul How

With crypto prices falling, mining equipment goes on sale in China

For some miners, the recent developments in cryptocurrency prices mean little to negative returns, based on the cost operating their equipment.

Small- to medium-sized mining companies in China’s Xinjiang and Inner Mongolia are reportedly selling their gear, in the expectation that prices will stay down in the foreseeable future.

According to the 8BTC news site, equipment is available in the secondhand market at prices ranging from 100-1,600 yuan ($14.50-$230). Among the models being sold are older ones such as the Antminer S7, the T9, and the Avalon A741, which are said to be unable to provide a profit in today’s market.

The 8BTC article noted that even at supposed bargain prices, it was difficult to find people willing to buy the equipment. Buyers are wary of receiving defective hardware that will be more trouble than they cost. Another factor in consideration is if the miners will be of use for one’s specific purposes.

Reddit users, presumably engaged in mining as they claim, chimed in, with one saying that, “Almost no one, with good reason, is willing to buy secondhand fans and PSUs [power supply units] from miners. I wouldn’t buy parts from a mining rig even at an 80% discount.”

A recently released video gone viral among the Chinese cryptocurrency community shows miners being heaped over one another, apparently left as scrap. Whether or not the footage is legitimate, it does stress the importance of keeping costs low so as to maximize profits. By looking for the most efficient chips available, one can avoid losses when prices are low, and enjoy the windfall when demand returns.

Among the latest products set for release is an ASIC chip from Squire Mining, which based on a recent test has a projected hash rate of 18 to 22 terahashes per second, using 700-800 watts. This involves 50% less energy, at 1.5 times the speed of other chips out in the market.

During the Bitcoin BCH Miners Choice Summit in Hong Kong last November 2, CoinGeek Mining’s Yuan Bo presented a comparison between different miners, where CoinGeek Hardware, using Squire ASIC chips, was shown to be more efficient than those using market-leading ASIC chips. The rig will finally be presented during CoinGeek Week, scheduled on November 28-30.

Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB coins.

Bitcoin Satoshi Vision (BSV) is today the only Bitcoin project that follows the original Satoshi Nakamoto whitepaper, and that follows the original Satoshi protocol and design. BSV is the only public blockchain that maintains the original vision for Bitcoin and will massively scale to become the world’s new money and enterprise blockchain.

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