Bitcoin’s collapse is not only in price but also in miners

Bitcoin’s collapse is not only in price but also in miners

As Bitcoin prices are heading south, more miners are giving up and leaving the industry as a Blockchain.info report on the bitcoin network showed recently.

According to the report, estimates of between 600,000 and 800,000 bitcoin miners have shut down since mid-November. F2pool founder Mao Shixing affirmed that the estimate takes into account the total network hash rate drop and average hash power of old mining machines.

“It is hard to calculate a precise number of miners connected to us that had unplugged. But we saw over tens of thousands of them in the past several days based on conversations we had with larger farms that we are in regular contact with,” Shixing said.

Shixing also commented that his own company has also seen a decline of 10% in recent weeks.

Other analysts argue that the declining in the average has power and hash rate is due to the replacement of equipment. However, Shixing is not optimistic for now.

Shixing highlighted the rising power prices in China, the Bitcoin Cash hard fork, and the decline in prices are putting miners in a hard position. Old machines are no longer profitable at current Bitcoin prices.

Hash rate at minimums since July 2018

The hast rate, the estimated number of tera hashes per second (trillions of hashes per second) the Bitcoin network is performing, is at its lower level since July 22, 2018. Hash rate is performing 24% down from its all-time highs reached on October first.

By bitcoin mining pools, BTC.com represents 19.4% of the hash rate distribution, then AntPool with 12.5%, F2Poll and SlushPool with 10.2% of market share.

On the other hand, when hash rate drops, so does the mining difficulty. Usually, “the change of bitcoin’s mining difficulty normally has a lag of about 14 days. After this wave of shutdowns, those players who opted to stay in may have a better life,” Shinxing finally stated.

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