Several hundred thousand asics are gathering dust in warehouses instead of mining the cherished crypto

  • 16:05 Oct 15, 2022
Several hundred thousand asics are gathering dust in warehouses instead of mining the cherished crypto

It became known for the huge amount of unused mining equipment. Such a figure is even more striking against the image of the industry against the background of the falling value of bitcoin and enormous energy costs.

As recently as last year, people mining crypto-assets were feverishly buying up Asics to launch them as soon as possible and join the unequal battle for BTC. Manufacturers of this hardware couldn't keep up with the orders.

Now, according to Matt Schultz, executive chairman of Bitcoin miner CleanSpark (CLSK), 250,000 to 500,000 acics are in their boxes waiting to be launched. But will it ever come?

This and many other factors suggest that the crypto sphere leaves much to be desired. Alarm bells rang last month when Compute North, a major data center, filed for bankruptcy.

Reasons for the mothballing of miners and the subsidence of the industry

Let's not reinvent the wheel when we say that the problem lies in the obvious:

  • falling prices of virtual coins (and not just bitcoin);
  • increase in associated costs (electricity, taxes);
  • the cost of mining equipment.
There is an opinion that the new equipment does not have enough space in specialized data centers. It is also believed that the Asics have become expensive to operate. And the actual price of a bitcoin does not even outweigh the effort and money spent. 

How is the situation with the manufacturer of mining equipment

Despite the lack of demand for new Asics and a surplus of devices for mining virtual coins, their creation is still going on. And they are sold at a reduced market value.

For example, Bitmain in September this month offered a discount of up to 30 percent on its flagship devices. Such an attraction of generosity has not been seen for a long time. And few people are interested in this offer. So, beginner miners are not squeamish about used equipment. Professionals have enough of their Asics.

Only a steady BTC value can stabilize the situation. Which is unlikely in the context of current realities. We will follow the developments and inform you, our readers.

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