More than 10,000 Bitcoin miners shut down mining due to markets crash
The Cryptocurrency markets are facing a brutal beating in the last few days, and it’s not only traders being affected. One group which is drastically affected are Bitcoin miners who are not able to match up to profitability with the current price levels of Bitcoin.
A Chinese Cryptocurrency publication, cnLedger tweeted some disturbing content for Cryptocurrency enthusiasts. One such Tweet was a video of Bitcoin miners throwing away equipment showing the losses being faced especially by Chinese Cryptocurrency miners.
"The time to buy is when there're miners in the streets." pic.twitter.com/3fshPcANDF
— cnLedger (@cnLedger) November 20, 2018
The tweet was followed by more images of Bitcoin miners getting off rigs from the owner of F2Pool which is one of the largest and oldest Bitcoin mines in China.
The Bitcoin hash rate has fallen to the lowest since August this year according to eToro’s senior analyst Mati Greenspan.
Tens of thousands of #bitcoin miners were shut down due to the recent market crash, according to the co-founder of F2Pool, one of the largest/oldest mining pools in China. https://t.co/6SHeF4Yy3I pic.twitter.com/sSJ9WHq13Z
— cnLedger (@cnLedger) November 21, 2018
Hash Rate Explained
Hash rate is explained as the unit of measurement for the amount of computing power the Bitcoin network is consuming in order to be operational. It is calculated in the time frame of 10 minutes.The miner’s expected profit is directly proportional to the hash rate.
Image Source – Blockchain.com
As seen the hash rate has risen steadily since November 2017. However, the fall experienced in the last few days is a warning to Bitcoin miners. It has climbed from 10,000,000 TH/s to 60,000,000 TH/s and has now fallen to 40,000,000 TH/s.
What can be done to save the Bitcoin Miners?
A German-based company called Northern Bitcoin has reduced the cost of mining by using green energy. It has based the Bitcoin mine at The Lefdal Mine in Måløy, Norway where cold water is used to cool systems with a hydroelectric energy source to power the machines.
At times where the Cryptocurrency prices don’t match up to profitability, one-way miners can ensure profitability is through renewable resources to reduce costs.
Image Source – Flickr
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