The hashrate of bitcoin sharply fell down to over 50% in the last few days from 62 quintillions to 34 quintillions. The following hashrate was earlier experienced in 2005 and as the prices started to rise, the hashrate never came so down. Now as bitcoin broke the $5000 support level, the hashrate has fallen down massively.
China, the biggest exporter of ASIC miners is now selling the machine at the price by ‘kilo’ or ‘kg’. The founder of F2Pool, a bitcoin mining giant in China said that the sudden crash of bitcoin has led to thousands of mining companies to shut down.
The falling price and increased electricity cost have led to ZERO PROFITABILITY in terms of bitcoin mining. Mining companies are backing out and moving toward other businesses.
Canaan, a mining company which was going to go public in a few days and were hoping for massive investments had to lapse their Public Offering suddenly due to the market collapse.
Giga Watt, a mining farm was recently filed for bankruptcy. The company owes nearly 7$ million to creditors and over $1 million for electricity bills. The firm filed for Chapter 11 protection in Washington bankruptcy court declaring that the company is insolvent and unable to pay its debts. The company was founded in early 2012 by an ex Microsoft employee who started following bitcoin back in 2010.
With the falling prices and miners backing out, is bitcoin going to fall even more? Tell us your thoughts in the comments section below.