ASICs are not profitable anymore, the market is falling deep down but electricity bills still there. It is right time to finish everything and say goodbye to mining farm forever.
The majority of private miners have ended up in such situation nowadays. Do we need to worry or just wait until hard time is finished? So let’s find out now.
We have already talked about
We have already talked about mining in our previous videos, we warned about this industry becoming more and more professional, and only those will remain there who has clear business plan and consider the cryptocurrency market conditions. Nevertheless our words completely prove current situation, where modest private miners have to turn off their equipment and urgently look for a job.
Nowadays there is a high rate of chasing out of mining everyone who did not care in time such questions as equipment upgrade, searching the cheap electricity and creation of financial safety net. Private miners are destroyed in the same way as the market destroys investors-hamsters, who fall into panic attacks in an attempt to take back at least small amount of invested money.
The tale under the name mining is officially ended, and now it is a right time to critically evaluate this situation.
Mining is dead, but it is not sure
Let’s check the numbers, ethereum miners have the worse situation being in the value of minus 90%. This is a good example which confirms a hashrate diagram, its rates almost returned to the same level as in the beginning of this year. Therefore everyone who decided to mine a bit of ethereum this year, currently they changed their minds. Anyway it is not really so, in reality the ones who ignored the falling market were out of the game and continued to mine as nothing happened.
If we look at bitcoin`s hashrate, we can say situation is quite better there. Despite the twice reduction of network power, from the beginning of the year the hashrate doubled exactly in two times. Recently the second largest reduction in the mining complexity has taken place, when it was lowered by 15%. This was supposed to bring an enthusiasm to the Bitcoin miners, but reducing the cost to 3400$ greatly affected a prime cost.
Accordingly all of this leads to the fact that only big players remain in mining. The ones who can afford to buy the most modern equipment, work in areas with reduced tariffs for electricity and can attract an investment or work in disadvantage for a long period of time.
The big miners have access to the over-the-counter cryptocurrency exchange market as well where they sell coins at more higher price and they are free to trade cryptocurrency futures while selling for a fall.
What is next?
What can we do in such situation, and how to survive the harsh cryptowinter? There are a few ways, which is the best one – it is only personal matter.
The first option is to turn off the farm for a while, and wait until a recalculation of complexity happens, and the cryptocurrency value come back to the game. In other words just wait when farm starts to bring profit again. Such way is suitable for domestic miners, who do not need to pay for an office rent and give salary to the staff. The only thing we advise you do not sell the equipment, because prices fell extremely down and when the market gets back to normal, today your income will not allow you to buy an installation with the same kind of power.
The second option is work in disadvantage for a perspective, to compensate current spending after the prices go up. Anyhow it does not mean you have to create more damage for yourself, and take the credit to pay electricity bills. But if you have a certain financial cushion, then there is a reason to keep on going the most effective equipment, and continue mining for collecting the cryptocurrency. Regardless this you should definitely check what is more cheap, get coins or just buy it at the exchange.
Final the third option can be related to previous ones. The methods to decrease mining expenses have to be seek for bringing back an income. For example to find a cheaper office, to get a reduction in the electricity tariff, switch to a pool with a smaller commission, or to consider the possibility of mining other cryptocurrencies. You can also rent your farm to those miners who live in a better condition, and continue to earn money.