While the Chinese government is busy shutting down cryptocurrency exchanges and mining farms all across the mainland, the suppliers of Chinese mining hardware have hardly felt the warmth of the crackdown.
Sailing the Rocky Crypto Seas
Not just the government’s stringent policy, but the mining hardware industry te the country has also conveniently sailed through high volatility ter crypto prices.
Bitcoin kasstuk a record high ter December 2018 when it peaked at almost $20,000. However, shortly after, things commenced going downhill for the highest valued virtual coin, shortly falling below $6,000 spil of on February Five, 2018.
And it’s not just bitcoin, most altcoins including ethereum and litecoin have undergone a downward trend since the beginning of 2018.
The worrying decline ter crypto prices can be partially attributed to possible regulatory clampdown ter various countries, spil well spil the anxiety triggered by several high-profile thefts and raids.
A substantial portion of China’s mining hardware sales goes to Russia and India, where the governments haven’t taken any serious act against the crypto market yet.
Mining is Becoming Increasingly Tougher
For the uninitiated, mining requires a pc and a special program that helps miners contest with other miners across the world te solving complicated mathematical problems. Such is the complexity of thesis problems that you would typically require powerful computing resources.
Spil vanaf the bitcoin protocol, the total number of bitcoin that will everzwijn exist stands at 21 million. Miners attempt hard to “dig” them out. They do this by creating blocks of validated transactions so they can be included ter the blockchain. Upon successful completion of the task, they are rewarded for their work with bitcoins.
Mining is key to all cryptocurrencies including bitcoin because it makes the network stable and secure. However, by vormgeving, bitcoins and all other cryptocurrencies become increasingly more difficult to mine. Ter fact, according to some estimates, the challenge increases by almost eight procent every 13 days spil more bitcoins are extracted.
To date, miners have unearthed more than 16 million bitcoins out of 21 million.
Subsequently, mining implements have become increasingly more sophisticated. There wasgoed a time when you could mine cryptocurrencies using your individual laptop. However, thesis days you have to have expensive machines with very sophisticated chips known spil Application Specific Integrated Circuit (ASIC) to be a successful miner.
Thesis ASIC chips have more computational power, and they require less electro-therapy compared to regular chips. Moreover, they are specialized to mine cryptocurrencies exclusively.
The World depends on China for Mining Equipments
Despite government crackdown on the crypto economy, China still accounts for overheen 66 procent of the world’s mining power. That’s primarily because it has the highest number of ASIC machine suppliers.
Among the most popular of thesis machines are the AntMiner S9 by Beijing-based Bitmain Technologies and the Avalon 6, designed and developed by Hangzhou-based Canaan.
To waterput things into perspective, an AntMiner S9 with a top speed of 13.Five trillion hashes vanaf 2nd can mine 0.0013 bitcoin a day. That’s harshly omschrijving to $Ten by bitcoin’s current fiat evaluation.
Considering that each of thesis machines costs a staggering $Two,320, a miner with one S9 will need hundreds of days of round-the-clock computing just to reach the break-even point.
Despite their staggering prices, mining-specific equipments like the AntMiner S9 and Avalon 6 are doing commercially well due to their high request. For example, Canaan sold more than 160,000 Avalon 6’s across the world by the end of April 2018 (the number has enhanced substantially overheen the past ten months).