Financial Times reports that miners are shutting down business as bitcoin has become cheaper than the cost of its production,
26.12.2018
In the summer, Uzbekistan officially set a course for the development of mining and was going to launch a pilot project.
The British company Bladetech, which in March announced construction of the UK's largest mining facility bitcoin, said it had suspended the project due to unstable the situation on the crypto markets, writes financial times. On this drew attention in VC.ru.
Chinese manufacturers of mining equipment Ebang, Canaan and Bitmain postponed IPO plans. Nvidia shut down its division development of crypto equipment. American mining company Gigawatt filed for bankruptcy in November.
“Many companies that mine cryptocurrencies, as well as amateur miners are closing the business, because due to the fall in the cost cryptocurrencies, he began to bring them losses, ”the publication concludes.
Experts interviewed by the publication say that for break-even mining, including electricity and depreciation costs, bitcoin should be worth about $5000. On December 16, the bitcoin rate fell below $ 3,200 - this is 80% less than the maximum values at the end of 2017. Then the price of bitcoin approached $20,000.
The aggregate capacity of mining farms has fallen by 40% since August 2018. This suggests that about 1.5 million farms have been shut down since September. calculated in the research company Fundstrat.
In the summer, Uzbekistan officially set a course for the development and implementation of blockchain, crypto-assets and mining. Blockchain will be implemented state bodies, will legalize all crypto-assets and their processes purchase and sale, will begin to train personnel on the blockchain and will launch a pilot mining project, for which Uzbekenergo and Uzbekhydroenergo.
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