China-based crypto miners have started selling their mining equipment following a recent crypto market crash. According to a local Chinese cryptocurrency news outlet 8BTC, miners are offloading their mining devices by kilo instead of price per unit.
Last week, Bitcoin, Ethereum and other major digital currencies declined in value, with Bitcoin price dipping to as low as $4,300 to hit the lowest point in almost a year. Ethereum and Bitcoin Cash experienced the biggest drop in the price of all the top ten cryptocurrencies, falling by nearly 30% and 50% respectively. This month, the market value of all cryptocurrencies has also plummeted from $220 billion to $140 billion.
A conflict among members of the Bitcoin Cash community is largely blamed for the market meltdown. The world’s fourth digital currency by market cap split into two on Nov 15 amidst longstanding fundamental conflicting viewpoints in the community.
As Crypto prices fall, mining crypto is no longer profitable
When the price of gold plummets, miners suffer. The same applies to the cryptocurrency ecosystem. The price decline has left crypto miners in a confused state. Mining has become unprofitable, according to the latest estimates of China-based mining pool F2Pool.
Therefore, cryptocurrency miners in China are reportedly selling off their older models, including the Antminer 7, Antminer 9, and Canaan Creative’s AvalonMiner 741. According to F2Pool report, these devices have become too costly to maintain under current market conditions. The miners said they are no longer able to cover electricity and management costs incurred by use of those devices.
No one is willing to buy
Nevertheless, it is still hard to find a buyer who is ready to purchase such outdated devices, even though sellers are selling them at a fraction of their original price.
“Almost no one, with good reason, is willing to buy secondhand fans and PSUs from miners. I wouldn’t buy parts from a mining rig even at an 80% discount,” a Reddit user commented.