Cryptocoin Mining Meltdown – ASIC Bitcoin Miner Prices Plunge as Other Cryptocoin Miners Pull the Plug
Canaan’s Avalon 841 Bitcoin miner went on sale 24 hours ago at $2299. Earlier today there was a price drop to $1999. There’s proof right there of a cryptocoin mining meltdown. Rewind to six months ago and brand new ASIC Bitcoin miners were selling out at full price in a matter of minutes. I know. I was there. I saw it myself. One of my orders was canceled because they couldn’t meet the demand. Now the supply of Bitcoin miners outweighs demand; the Avalon 821 NEVER sold out as resellers began issuing hefty discount coupons anywhere from $100 to $400. Heck, in some cases they have been GIVING AWAY Avalon 821 miners if you bought enough 841s. What’s really startling is the long-awaited Avalon 841 is still in inventory a full day after going on sale AND with a 15% price drop.
What’s going on? Well, Bitcoin prices are low while the difficulty rate remains high. Then we have this new round of FUD from CNBC on the bleak outlook of Bitcoin mining profits AND reports out of Plttsburgh, New York of the first-ever Bitcoin mining ban. Mix all of these ingredients together and bake them under the heat of FUD and you end up with a cryptocoin mining meltdown.
Cryptocoin miners of every stripe are feeling the pain. Cruise various Internet discussions and you’ll learn of miners shutting down their rigs to wait this out as the current price of altcoins makes mining such coins pointless. Other miners are already listing their cryptocoin mining hardware on eBay and other places. Oh yeah, there’s a cryptocoin mining meltdown well underway. New cryptocoin miners who just finished remodeling their basement turning it into a mining farm are wondering what to do with an “OH FUCK” moment in light of the current cryptocoin mining meltdown.
Until just until recently cryptocoin miners dreamed of moons and lambos as they plowed thousands of dollars into hardware and high electric bills. The future is uncertain in light of the cryptocoin mining meltdown underway. For any sort of inspiration and guidance through this storm turn to Jihan Wu, co-founder of Bitmain. He has made billions on cryptocoin mining and stands to make billions more. In my opinion he is the de-facto leader of crypto mining. No one has more motivation than him to figure this out. In the short term, do your research and do your own math to see if cryptocoin mining in the short term makes economic sense.