How Cryptocurrency Miners Adapt And Adjust To Pull Through The Bitcoin Bear Market

How Cryptocurrency Miners Are Adjusting And Trying To Pull Through The Bear Market

The recent state of the market has really been a bad experience for crypto miners and investors. For some time now, many crypto miners have been striving to make little profits in the bear market. Some crypto miners have lost hope and hence left the crypto market. But despite all the happenings in the crypto market, skilled miners still make huge profits daily.

The crypto-Market Is Taking Its Toll On Crypto-Miners

Top crypto miners in the cryptocurrency industry aren’t finding it easy. However, Bitman, a crypto-mining company based in China that has been gunning for an IPO push recently announced that it would officially close the operation of its Israeli development center.

Bitman’s VP of International Sales and Branch manager Israel, Gadi Glikberg, states,

The crypto-market is under a shake-up in the past few months; as a result, it has forced Bitman to take a look at its activities around the world and to reinforce its business in accordance with the current market situation.”

It is important to know that Bitman’s new decision has made the future of its IPO push to look bleak.

Bitman is not the only crypto-mining company that has been affected by the current trend of the crypto-market, many mining operations and rigs have also been closed in China as a result of the bear market.

With that in mind, Matt D’Souza, the co-founder of Blockware solutions, who also holds the charge of one of the biggest mining pools for Aion Network stated that the bear market has caused lots of mishaps for crypto miners, but the highly-skilled ones are getting larger profits despite the bear market.

He further emphasized that the miners who purchased mining rigs between the third quarter of 2017 to the second quarter of 2018 are the ones facing big losses in the market now. He also noted that back then when these miners were purchasing large oil rigs, Bitcoin was worth more than $9000; S9s were worth more than $2000.

The Crypto Market Is Now A Place For The Strongest Only

With the current trend in the market, it is now a game of the strongest as inventive individuals/miners observe the past mistakes of others and then, not making the same mistakes. These innovative individuals now limit their cost of operations so as to stay competitive in the market, till there is a turnaround in the market.

Normally, individual miners pay $0.13 per kWh to mine cryptocurrencies. A report by Blockware US states that these innovative individuals have now reduced their cost of operation to about 40% in the current bear market. D’Souza said:

Miners reducing their cost of operations and moving into a 2-year contract at the present market rate is equivalent to an investor buys Bitcoin at $3,500 with the 2-year hosting contract.” He further added that “miners are securing an average of $60-$75/month per S9 and paying $265-$340 for the mining rigs they buy.”

Geopolitical Tariff Between The US And The Chinese Government

Subsequently, a significant point to consider is the geo-political tariff that exists between the United States and the Chinese government. These tariffs could make mining operations unprofitable. Nevertheless, it’s hopeful that when the market gets to its momentum, miners might be able to thrive again.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Avatar
Bitcoin Exchange Guide News Team
B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,511FansLike
2,795FollowersFollow
4,269FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Alibaba Founder Jack Ma: Digital Currencies are the Future of Financial System

Alibaba Group founder Jack Ma talked about digital currencies, potentially playing an important role in building the financial system of the future. Ma at...

Kanye West and Kevin Hart Gives Bitcoin (BTC) a Shout Out

Over the weekend, Bitcoin got a shout out from two celebrities. The first one came from Kanye West, who appeared on Joe Rogan’s popular podcast...

Ethereum 2.0 Deposit Contract Almost Ready, Awaiting NCC Group Audit Approval

The Deposit Contract of Ethereum 2.0 is almost ready, according to Danny Ryan, a researcher from the Ethereum Foundation. He revealed this development when...

DeFi Harvest Finance Total Value Locked Halves & FARM Tanks Following ‘Economic Attack'

Another day, another DeFi exploit. It was last week that the less than two-month-old Harvest Finance saw its total value locked (TVL) surge to $1.175...

Crypto Market Sentiments Do A 180; From Fear to ‘Borderline Euphoric' Following Bitcoin Rally

Since surging last week to hit $13,000, Bitcoin has been keeping around this level. More importantly, over the weekend, Bitcoin made its first close above...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today