In a year long bear market, many encryption miners are downsized, or suspend vehicle, or close the mine. However, with the decrease of difficulty, some small miners also slowly return to mining, because this digging will become more simple encryption currency.
The miners to lower the price of bitcoin
In 2017, when the currency price is still high encryption. From the ICO to the miners, almost all businesses are steadily rising in the crypto currency price support on the upgrade. Even when prices rose sharply in the fourth quarter, many more than a crypto currency highs, it is indeed the case.
But after that, the long bear market. Although bear a lot of the impact of industry encryption market, but most of the miners still seem to insist on. Of course, there is also mining project was terminated, especially like HashFlare cloud service providers.
In mid November, bitcoin prices plummeted again, resulting in bitcoin prices fell to its lowest level in more than a year. Many miners were forced to go out of business. There are reports that 800 thousand mills were forced to shut down.
HyperBlock is one of the largest bitcoin mining company in North America, its chief executive Sean Walsh (Sean Walsh) said:
The long-term decline and the downturn of encryption currency makes a lot of encrypted miners bankruptcy, this is why we are talking about our business will be more cautious.
Because after the bitcoin price is not significantly improved. The more profitable mine collapse, bitcoin network difficulty also declined, the miners have to in the new market conditions, to find a new balance.
Small mines have a chance?
Recently, encryption currency trading platform CEO Atlas (Atlas Quantum) said in a quantum “column” in the international business times, because bitcoin mining began to reduce difficulty, small mineral company may try to return to the industry. However, if the price of bitcoin is not much improved, so this is a short-term trend.
The problem facing the survival of the miners is still large, mainly because they can not reduce the cost of mining. If the small miners back to the market, then the other big miners can take this opportunity to consolidate their position in bitcoin mining field.
Finally, bitcoin mining will be price driven, become a kind of “survival of the fittest” model of the market. Only able to resist crypto currency miners to continue operating the bear market.
The current market situation, bitcoin miners need more innovation. In order to survive, the mineral company will have to consider the optimization of the operating cost.
For large companies such as HyperBlock, has not changed much. The company in the Bonner site manager Jason Vaughan (Jason Vaughn) said that as usual. Walsh responded to Vaughan’s comments:
We establish the HyperBlock encryption is to resist market fluctuations and pressure, because we believe that the application of this technology beyond the scene.