Perhaps you aren’t into mining Bitcoins or any cryptocurrency, but here’s a question: who would you feel if you were to buy a BTC miner whose power consumption is higher in value than that of the coins it actually mines?
Well, guess you’d be enraged like a Maltese Bitcoin miner who apparently sued a local IT company that sold him the machine. According to Malta Today, the individual took the firm to court after getting a power bill that was higher than the value of coins mined using the device.
The man who probably felt cheated and robbed filed the complaint at the country’s Consumer Claims Tribunal. He stated that the unspecified miner worth €2,600 was not only noisy but also unprofitable.
The Consumer Claims Tribunal requested 3 Group’s CEO, Dario Azzopardi, to appear and answer the charges. Through a statement made on Tuesday, the tribunal said that they issued Dario Azzopardi with a notice to appear and answer the complaints.
Bizarrely, the CEO of the IT firm filed no objection on the matter. He neither attended nor sent a written response to the matter. Eventually, the miner had his original sum of €2,000 used to buy the machine refunded.
When it comes to choosing a cryptocurrency miner, some of the fundamental factors one has to consider are power costs, prevailing coin market prices and the amount of coins it earns. The three play a huge role in the entire proof-of-work blockchains.
Bitcoin miners have an automatically adjusting “difficulty” feature that monitors the ease of solving mathematical problems that miners are rewarded for. The mechanism ensures that blocks are “mined’ after every 10 minutes, regardless of how powerful a machine is.
For a machine to survive this though it has to be powerful and monstrous on power consumption, thanks to the application-specific integrated circuits (ASICs). The Maltese miner probably never paid attention to this while buying the miner and thus incurred a loss.
The recent past has seen Bitcoin witness huge amounts of computing power. Data from BTC.com, a website dedicated to mining data, shows that the current average BTC mining hashrate stands at 71.43 quintillion hashes per second (EH/s), a record high. It previously stood at 64.49EH/s and the current level represents as 10.78% increase, perhaps a testament to the miner’s losses.