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Global Crash: Major Chinese Mining Farm Shuts Down Due to Market Woes
Chinese miners, who wanted to become rich in a snap because of the Bitcoin craze, are facing the music after the BTC price has been slashed by more than 80 percent since last year. Recently, a major mining farm has been sold off due to the exodus of its customers.
Yuri MolchanThe chock-full market is getting less contentious
In order to prove that the state of the cryptocurrency mining industry remains in the doldrums in 2019, Nikkei, one of the largest financial newspapers in the world, reached out to Lu Qing, who has been making his living by mining Bitcoin. Qing had to return to Jiangxi, a southeast Chinese province, after his mining operation failed. Notably, his mining farm, which included more than 7,000 computers, remained profitable even when cryptocurrency prices started freefalling.
That was possible due to inexpensive renewable energy. However, as the price of the flagship currency plunged below the $4,000 mark, his clients started jumping ship en masse, and Qing had no choice but to sell his farm at low prices.
A bump in the road, or the death of crypto mining?
The report states that some of the equipment that earlier cost 30,000 CNY ($4,413) will now set you back only 400 yuan ($59). This trend can be seen worldwide – U.Today earlier reported how tech forums are flooding with cheap used mining cards, but not everyone is eager to buy graphics cards with the ‘used for mining’ stigma attached to them.
Currently, only the industry sharks are staying in business despite the market crash. Still, things are not looking great even for the biggest players. Case in point: Bitmain, a Beijing-based mining giant, which has booted tons of workers since failing to launch its much-hyped IPO.
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Dan Burgin
