A series of pictures and video circling around has seen some mining companies in China, dumping old ASIC miners on the street, while some are been sold as scrap.
Old ASIC Miners Getting Dumped
Initially, the video and pictures were assumed to be doctored and far from the truth. Some even claimed that the video was a result of the flooding incident which saw the destruction of thousands of mining rigs in China’s Sichuan province and that the original posters were spreading them to stir up FUD.
However, the images have been confirmed to be real and they depict a mining firm discarding their old ASIC miners. The confirmation came from Hu Jie of Si Hua Mining, in a sitdown he recently had on a popular local news channel.
Hua confirmed that the pictures appear to be genuine and it depicts miners dumping older-generation devices such as the Antminer S7 and V9.
He added that;
“When ASIC rigs become obsolete, he explained, it is common for large Chinese mining farms to sell them as scrap metal. Of course, old models are out of the game, as the picture shows. But that doesn’t represent the majority,”
He continued by saying that:
“Electronics become outdated easily. For example, smartphones like iPhone 3, 4, of course, they can be sold by the pound. It’s normal life cycle.”
Is Bitcoin Mining no Longer Profitable?
Some observers have however interpreted the images and video in a different way. According to them, the video made it clear that crypto miners — even those located in China, where low energy rates provide greater profit margins — are starting to feel the pressure of the unending bear market the industry has been engulfed in. As a result of this, these miners have reached the conclusion that the price of bitcoin has reached their “shutdown-mark,”. At this point, miners can no longer turn a profit running the machines.