As Bitcoin prices continue to fall, will mining machines shut down?

Author: Editor of Zhikuang University

Around 8:00 am on October 24, 2019, Bitcoin crashed, falling by nearly $500, with the largest drop reaching 10%. The contract market was liquidated with more than 1 billion yuan in a short time, which was really tragic. People all over the world have suffered from the bear market for a long time!

Every time there is a big drop, naturally many people are concerned about whether the mining machines will be shut down. Today, the editor will explain to you whether the current coin price has reached the shutdown price of some mining machines.

1. Are there any mining machines that have reached the shutdown price?

At the current price of Bitcoin, some mining machines have indeed been shut down. There are two factors that determine whether a mining machine is shut down: the price of the currency and the electricity cost.

Based on the real-time Bitcoin price of 52841.061 and the electricity fee of 0.26 yuan per kWh, the mining machines that are currently shut down are Antminer V9 and Shenma M3. T9+ is also almost shut down.

At present, many machines use thermal power, which is calculated at 0.35 yuan per kWh.

If calculated based on the electricity price of 0.34 yuan, the Ant T9+ has already been shut down.

At the current price of the currency, those mining machines that have been shut down are very old ones, with an energy efficiency ratio of up to 120J/T. These mining machines are meant to be eliminated and account for a very low proportion of the overall network computing power.

2. When will the S9, the flagship smartphone of the generation, be shut down?

What everyone is most concerned about at the moment should be S9. As the former king of mobile phones, S9 still has a large amount of inventory in the market. The computing power it contributes is estimated to be around 50E. Whether this batch of machines is turned off or on affects many people.

At present, some miners' S9s have been shut down, and many miners are even selling S9s. Today, the editor saw a miner in the group who wanted to give the mining machine directly to a mine owner for mining, as long as he could get a little bit of coins.

The transition from the flood season to the dry season has begun, and some miners need to migrate their machines from cheap hydropower to relatively expensive thermal power. The price of thermal power is relatively high, and S9 is almost not profitable. In addition, the transportation fee for migrating the mining machine from Sichuan to Inner Mongolia/Xinjiang is 30 yuan per mining machine, which is equivalent to the income of a mining machine for a month, and the machine is damaged during transportation.

3. Where will S9 go?

It is currently the early stage of the dry season, and the power generation of the hydropower station is gradually decreasing. Some S9s have just begun to find a way out.

1. S9’s elimination is an inevitable result

Major mining machine manufacturers have already released a large number of new mining machines. In this cycle, S9 is destined to be eliminated.

2. Big miners who own mines buy at the bottom

The price of S9 is very low at present. Some retail investors are panic selling. The price of mining machines is even as low as 500 yuan. According to the editor's observation, some large miners with their own mines buy them at low prices because they build their own mines and the electricity price is only more than 20 cents. If the mining machine is cheap enough, even with the current coin price, the payback period will be very fast.

3. Mining machines go overseas

In overseas regions such as Iran, electricity prices and machines are cheap. Due to the instability of their policies, some miners will ship the mining machines that have been eliminated in China overseas. Since the electricity prices are extremely cheap, the payback period is also very short.

4. Will mainstream mining machines be shut down?

There is no need to worry about the new mining machines being shut down this year. Under the current mining difficulty, the shutdown coin price is less than 20,000, which is still very safe.

5. Risks and opportunities coexist

Every time the price of the currency plummets, the price of mining machines will also be adjusted accordingly, especially those mining machines that are on the line of life and death. Mining has almost no profit or has started to lose money. Their prices will be very low, and may even fall below their cost price.

Risks and opportunities coexist. Every big drop is a time for some people to collect goods, whether it is coins or mining machines. Behind this is actually the difference in risk tolerance and resource channels.

Note: The above is only the editor’s personal analysis and does not represent any investment opinions or suggestions.