After an overwhelming decline in valuation, the cryptocurrency market is facing a grave issue in the mining sector. It has been reported that the cryptocurrency mining operations in China are selling their tools by ‘kilos.’ Miners are reportedly eager to sell off their older tools Antminer S7, Antminer T9, and Avalon A741 as these are said to have reached their “shutdown price.”
The Bitcoin slump is reported to have taken a toll on the prices of the tools as well. According to a report by 8BTC, some mining machines are said to have been sold at 5% of their original price. The decline in the valuation of Bitcoin was cited since the hard fork network upgrade of Bitcoin Cash (BCH) on November 15, thus, leading to the suspension of BCH trading.
Meanwhile, earlier this month, Bitcoin giant Bitmain had announced plans to reach out to the local mining farms in the coal-rich province of Xinjiang. It had decided to deploy around 90,000 Antminer S9 devices in the region.
Norway adds to the woes
The country is reported to have decided to end the subsidies for Bitcoin mining facilities. Till now, the Bitcoin mining firms used to pay as low as 0.48 øre ($0.05) per kilowatt, in alignment with other power-intensive industries. This, in turn, has brewed up a debate.
Local blockchain industries are elated with the move since that would help the country save electricity, allowing the people residing in Norway to reap the benefits. On the flip side, domestic industry interest group ICT Norway condemned the government for its ‘insensible’ move.
How does the Bitcoin Mining work?
Unlike paper currency, Bitcoins do not have central governance. Miners use special software to solve arithmetical problems and are issued a certain number of bitcoins in exchange. This is a smart way to issue this currency and creates an easy opportunity for interested parties to start mining.
Bitcoin and security
Unlike popular belief, Bitcoin miners help keep the network secure by approving of transactions. Mining is an integral part of Bitcoin that ensures fairness and transparency while keeping the Bitcoin network stable and safe.
Bitcoin and the epic slide
The worst cryptocurrency crash of the decade is heading to another week. According to reports, Bitcoin sank by $4,000, and most of its partners tumbled on Friday. Concerns have doubled, and so has the plight of investors.
Interestingly, cryptocurrencies had a different agenda altogether— of stabilizing financial transactions and thereby, the global economy. The idea was to fund projects that did not have the capital but showed great potential. Unfortunately, the entire concept has been mired with scams and fake call for action. With investors and enthusiasts gradually losing faith in the industry, the future of Bitcoin seems to be bleak.