Bitcoin miners shut down the machines

Difficult times have come to Bitcoin's diggers after they have begun to suffer serious blows from the collapse of digital currency prices as a whole.

The Bitcoin Hash Rate, which shows the computer power required to dig the Crippo currency, has fallen by about 24 percent from its highest point in late August to November 24. Although some of the drop in the hash rate is due to the fact that some miners move from Bitcoin to other krypto currencies, according to JPMorgan Chase & Co, there are people in the industry who continue to lose money with the fall of Bitcoin .

"We have come to a point where in this price depreciation, digging has become an absolutely unprofitable occupation for many people." - says JPMorgan strategist Nikolas Panigirtzoglou.

Sammy Bitcoin miners, who with the power of computer power confirm transactions in the Crippto currency, are rewarded for their efforts with Bitcoin. If prices fall significantly below profitability, mining costs, such as the electricity bill, the efficiency of mining equipment, and other factors, have to shut down their systems to avoid operating losses.

Bitcoin's Bitcoin cost-per-Bithoin cost-effective BitTem Antminer S9 system costs $ 7,000 (November 16). This, of course, is a variable that depends on the quality of access equipment to a less expensive current.

The big outflow of network miners will be an alarming signal for computer chip makers including Taiwan Semiconductor Manufacturing Co and Nvidia Corp, which are suppliers to the industry. Consequences will also affect Bitmain Technologies Ltd, which creates mining systems, and the company aims to make initial public offering (IPO).

However, this may not be a very bad news. According to Hong Kong, the OSL-based crypto trader from OSL, Ryan Rabaglia, the release of weaker miners will enable those who survive to take advantage of the reduced digging difficulty. This, of course, is a guess based on the view, the cost of Bitcoin not falling further.

Source: Bloomberg Finance L.P.

Graphs: Used with permission of Bloomberg Finance L.P.

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