The price of crypto mining hardware is falling in China as reports of mining rigs sell “like junk” on the mainland as Crypto Crackdown 2.0 forces local miners to shut down. .
Cryptocurrency mining rigs are being sold like junk in China
According to Odaily and the Epoch Times and a report by broadcaster NDTV, the price of mining hardware has fallen by up to 50% since April.
An abundance of used machines for sale is believed to be the main reason Bitmain, the Chinese mining hardware giant, stopped all sales this past weekend – to keep prices down.
The station broadcast interviews with two experts from the mining industry (names and companies retained). The first, surnamed Zhang, said the number of used machines launched had caused prices to drop. Zhang added that many miners are trying to monetize their rigs instead of relocating.
The second, surnamed Li, said that “many people are at a loss right now” and that “many miners are still operating their machines.” He added that the crackdown “did not completely kill” the mining sector on the mainland.
However, Li commented that Bitcoin (BTC) mining is a risky business as it is relatively easy for electricity providers to spot. And with teams of seemingly increasingly enthusiastic inspectors, the chances of being discovered have increased, which makes mining riskier than ever.
With many miners out of business now and some still vaguely talking about moving to Texas and other US destinations, an industry insider said that “cryptocurrency mining machines are currently for sale.” like scrap “in China.
Cryptocurrency mining rigs are selling like junk in China – miners are suffering huge losses
In the Crypto Crackdown 2.0 war, Chinese miners suffer the most.
Once the price drop started in May, when Tesla announced it would not accept Bitcoin, it seemed like they were still hoping for new bulls. However, the opportunity is completely closed when the Chinese government severely punishes crypto mining activities.
Another mining ban has closed a number of mines, miners have to clean up the rig and have two options: either quit the job or move the rig to new land.
Even so, they are still hoping for a change in regulators as Sichuan has yet to enforce the ban. According to many theories, the rainy season is approaching and it is possible that the excess electricity will allow miners to continue working at least during the rainy season.
In the end, however, Sichuan was no exception to this raid. The order to close mining centers in Sichuan seems to have stolen all hope from the miners. The sell-out of rigs at unprecedented low prices takes place in what was once considered a premier cryptocurrency mining hub.
An anonymous Chinese crypto enthusiast was quoted as saying that sentiment among investors was similar to what he was quoted as saying:
“When the Bitcoin price began to fall for the first time, there was still a lot of laughter in the discussions among the investor group. Everyone jokes about the best way to raise their position. But this month the group chats are pretty quiet, most of the people are quiet and it feels like these groups are breaking up. “
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