Over 600k Bitcoin miners have shut down in last few days: F2pool founder
Since mid-November, around 600,000-800,000 Bitcoin miners have reportedly shut down amid the recent market crash and decline in hashrate. Bitcoin’s hashrate was roughly 47 million tera hashes per second (TH/s) on November 10, data from blockchain.info showed, which then declined 13 percent to 41 million on November 24.
Mao Shixing, founder of F2pool, in a recent interview with CoinDesk explained that most miners who have stopped operations might be those who are using older models such as Bitmain’s Antminer T9+ and Canaan Creative’s AvalonMiner 741. According to F2pool’s miner revenue index, the average hash power of these miners is around 10 TH/s, which implies that miners are possibly losing money right now. Moreover, Mao revealed that the hashrate of the network on F2pool, accounting for around 11.4 percent of the total network, has declined over 10 percent in the last few weeks.
“It’s hard to calculate a precise number of miners connected to us that had unplugged. But we saw over tens of thousands of them [shut down] in the past several days based on conversations we had with larger farms that we are in regular contact with,” he added.
Recently, Mao shared a picture of a man packing computer gear into boxes on his Weibo social media account. He captioned the post with “shutting down is not an option, now have to sell by the kilos”. “Those miners being sold by the kilos are even older and obsolete models that aren’t usable anymore. So people are selling to recycle [them] like copper instead of for further mining purposes,” Mao explained.
Factors contributing to the shutdown
According to Mao, there are several factors that have led to miners shutting down, including the market decline triggered by the Bitcoin Cash hard fork. Other factors include the increase in electricity costs in China and product upgrades, which are making older machines non-competitive.
The top cryptocurrency sank below $4,000 and is now posing problems for mining farms, especially those using machines of 2016 and 2017 that has lower productivity, Mao explained.
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