According to the chairman of the board of the Chinese platform for over-the-counter cryptocurrency trading BitKan, Leon Liu, the current round of market decline began at the end of last year and will last at least another 12 months. Lew believes that the Bitcoin Cash (BCH) hard fork and hash battles are just one reason, there are many other factors to consider beyond what is visible on the surface.
He insists on the version that the price of the currency will fluctuate slightly throughout this period, mainly sideways. In order to bring the market out of hibernation or start another rally, it needs a strong and effective push.
This market condition naturally affects the health of the crypto mining industry. During the year, leading manufacturers of mining equipment reported a decrease in profits from sales of ASIC devices.
Among the largest investors of BitKan is the manufacturer of miners Bitmain, which invested in the company’s Series B financing round in April of this year.
It is not surprising that the current situation for the crypto mining industry worries Leon Liu. Against the backdrop of market stagnation, the computing resource fell by 24%, compared to the August maximum hash rate peak. If the price drop continues, miners will no longer be able to profit from mining cryptocurrency.
So, according to Bloomberg, the break-even cost of selling one Bitcoin using the Bitmain Antminer S9 rig was estimated at $7,000 in a November 18 report from Fundstrat Global Advisors. According to the chairman, in China, the 20,000 yuan (~$3,000) threshold will become unprofitable for all mining devices. Miners and investors should start planning now for a new strategy in the event of such a fall in the price of Bitcoin.
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