BitMEX Research Estimates 1.3 Million Bitmain S9 Bitcoin Miners Went Offline Due to Profitability
The market crash for the prices of nearly all cryptocurrencies has been taking a major toll on everyone.
From investors to developers to miners, the community is suffering, and the changing prices have had a ripple effect. Based on a BitMEX report, it looks like “the recent price crash is likely to have sent almost all the miners into the red.”
BitMEX was recently the source of a report that is meant to examine “the impact this price decline may have on the mining industry.”
Published on December 10th, the report explains how the hashrate has declined by 31%, which is why many miners are struggling to make the same profits. Since the price has been declining, many miners with higher costs have already turned off their machines. As a result, it looks as if the equivalent of 1.3 million Bitmain S9 miners have been turned off.
The whole crypto community is suffering, leading them to question why the crash happened in the first place. There seems to be many different opinions, like the Bitcoin Cash fork or the recent regulatory changes. Still, regardless of the cause, a good portion of the individuals involved in the community seem to think that this is a sign that Bitcoin will soon reach zero.
The BitMEX website seems to be in favor of the Bitcoin Cash fork being the issue that led to the ultimate demise of the industry. This fork took place in November 2018, but data from Boltzmann shows that there was a major sale of Bitcoin by an “unusually large miner” just two days before the hard fork occurred on November 12th.
Continuing on this concept, the report also says, “Boltzmann detected that net Bitcoin sales from miners were ‘17.5 standard deviations below [the] 3-month trailing average.’ On further analysis, it appears these miners may have been a member of Slushpool.”
The report also tracks the slump that the Bitcoin mining industry has been going through in November. At the beginning of last month, the mining industry was bringing in about $13 million daily, which has gone down to approximately $6 million daily by the start of December.
The $7 million loss for the Bitcoin mining industry isn’t a good sign, considering that the incentives to perform these mining functions also has dropped by about 21.8% recently. Explaining the reason behind these losses, the report says,
“This drop in incentives was even larger than the fall in the Bitcoin price, due to a delay in the way difficulty adjusts. In the six-day period ending 3rd December 21.8% fewer blocks than the expected 144 per day were found, as miners left the network before the difficulty adjusted, and as a result, fewer blocks were found.”