Bitcoin plummeted 44% in 11 days! Behind the evaporation of $48.6 billion, what is even more miserable is that they

Recently, Bitcoin, the "King of Coins" that finally celebrated its tenth anniversary, suddenly entered "plunge mode".

According to Feixiaohao data, at 12:00 on November 14, the price of Bitcoin was $6,417. Compared with $19,299 at the end of last year, Bitcoin has plummeted by 67%. But this is obviously not the "bottom line". At 0:00 on November 25, the price of Bitcoin was $4,342. At 18:24 on the same day, the price of Bitcoin exceeded $3,620, which means that in less than 24 hours, it fell again by 17%. However, what is really miserable is the miners, mining farms, and mining machines that have flocked into the market since the rise of Bitcoin at the end of last year.

At today's Bitcoin price (US$3,620, approximately RMB 25,153), the Bitmain S9, currently recognized by the industry as the most cost-effective model, has fallen below the shutdown price (RMB 26,576). Its electricity costs account for 102%, which means that the electricity costs used to mine one Bitcoin have exceeded the market price of Bitcoin, not counting the custody fees and labor costs.

Miners at a loss

A few days ago, a picture of a mining machine being sold by pound went viral on WeChat Moments. Is this a real case or a common phenomenon?

According to statistics from the btc.com website, on October 4, 2018, the total computing power of the Bitcoin network reached a peak of about 74.54EH/s. On November 25, the total computing power of the Bitcoin network had dropped to 42.01EH/s, a decrease of 32EH/s, a drop of 43%. Based on the 13.5T computing power of the most popular Antminer S9 this year, this is equivalent to directly shutting down 2.37 million S9 mining machines.

Such huge data shows that this downtime storm is not an isolated case.

Mao Shixing, founder of F2pool and co-founder of Cobo Wallet, recently said: "The competition among mining machines has entered a white-hot stage. For example, I got a DCR mining machine today, which costs more than 10,000 yuan and has a capacity of 2.4T. A month later, another mining machine launched a 6T mining machine, and two months later, a 45T mining machine was launched, with a power consumption increase of about 10 times. The competition is very fierce, and the mining machine chips have been replaced twice every 3 to 6 months. As a result, many miners have suffered huge losses. At the beginning of 2017, a Bitcoin mining machine cost more than 20,000 yuan, but today a second-hand mining machine costs only a few hundred yuan."

Mao Shixing said: "Now is the most painful time for mining. As a strong cyclical industry, the current input-output ratio is not high. I recently interviewed several miners, and their average loss in 2018 was 10 million US dollars."

Desolate mine

The price of coins has continued to fall, and the number of mining machines has continued to decrease. As the main business of custody and providing services to miners, mining farms have also been in turmoil in recent months.

First, there is the issue of supervision. Earlier this month, the media reported that regular mines in Guizhou and Xinjiang were required to shut down for rectification, accept tax inspections and register with real names. In addition, the mines were also required to sign a guarantee letter for network information security work from the public security department. In response, the reporter of the Daily Economic News asked a large domestic mine for confirmation and received confirmation from the other party: "Xinjiang cleaned up the power supply of the Corps in September, and now the cleanup is continuing."

The second is the issue of benefits. "The mine is located in Yunnan, Guizhou, Sichuan, Xinjiang, Inner Mongolia, and Qinghai. The lowest price is 0.38 yuan/kWh (electricity fee + hosting fee)", "cost electricity price + operation and maintenance team + complete procedures", "cost electricity price, this is your mine", "2,000 slots left, the mine is powered by State Grid, and the procedures are complete". As a salesperson of this large mine, Mr. Wang's circle of friends has been filled with such content almost every day in recent months.

In addition to urgently recruiting customers to host mining machines for mining, Mr. Wang is also constantly advertising to help customers who do not want to continue mining to sell second-hand mining machines. "I am helping customers sell 5 S9I, 14T, with official power, May machines, shipped today at our mine", "The price is too low, I dare not openly sell it", Mr. Wang keeps promoting in the circle of friends.

Mr. Wang revealed to the reporter of "Daily Economic News" that "we have to pay for the state electricity we get from the power grid. It doesn't matter whether you consume it or not. You still have to pay for electricity even if you don't use (mining machines)." It seems that even though the electricity price is so low, as the price of coins continues to fall and the number of custodial customers decreases, the electricity that cannot be consumed will be left in the hands of the mining farms themselves.

Facing the current falling market, Mr. Wang lamented to the reporter, "I never thought the market would fall to this level."

Deserted new mining machine

The price of coins continues to fall, and old mining machines are sold by kilogram. What about new mining machines?

Earlier this month, Bitmain launched its flagship model, the S15, priced at 11,600 yuan. The official website showed that the S15 was sold out in just 5 minutes. Is this hot sales scene true? On November 22, a reporter from the Daily Economic News called Bitmain officials as a customer, and the other party said: "There are still some available, and you can receive them in 4 days."

Mr. Zhang, an old miner, also told the reporter: "The official website said that they were sold out on the same day. I guess it's a marketing method. I haven't seen any friends buying them yet. But I have a friend who resells mining machines. He has more than 200 machines from December and is anxious to sell them."

On November 21, Fan Xiaojun, head of sales for Bitmain in the Asia-Pacific region, also made it clear that the machines are currently difficult to sell.

According to the performance of S15 and the current price of the currency (November 25), the reporter calculated that if the electricity price of ordinary people is 1 yuan/kw, without considering the cost of the mining machine, the daily profit of mining is not only not enough to cover the electricity bill, but also loses 10.22 yuan. Professional mining farms charge 0.40 yuan/kw, and after one year of mining, one machine will lose 9,230 yuan (income of 2,370 yuan, minus the cost of 11,600 yuan). It is not attractive at all.

According to today's Bitcoin price (US$3,620, approximately RMB 25,153), the Bitmain S9, currently recognized by the industry as the most cost-effective model, has fallen below the shutdown price (RMB 26,576). Its electricity costs account for 102%, exceeding the price of one Bitcoin, not including custody fees and labor costs.

Looking back at the beginning of the year, one bitcoin was as high as 100,000 yuan, and an S9 was directly speculated from 8,000 yuan to 30,000 yuan. But now, the price of the currency has fallen so much that the ace machine has been shut down. It is like heaven and hell.

From 12:00 on November 14, the price of Bitcoin was $6,417, to 18:24 on November 25, the price of Bitcoin was $3,620. In just 11 days, Bitcoin has fallen by 44%, and its market value has evaporated by $48.6 billion. Many analysts believe that this vicious cycle of Bitcoin is due to "lack of fundamental value."

On the surface, there is a sharp drop in the price of coins, but behind the scenes are the bloodbath of miners, deserted mines, and deserted new mining machines, which have caused this controversial industry to suffer unprecedented shocks and changes.

Miner machine coin price: http://www.wabi.com/mining-income/miner.html