2018 was tough for the cryptocurrency sector. Rising cost of operations and electricity and higher prices for mining equipment threw a lot of believers out of the circle. Mining farms close, leaving miners out of pocket. The massive decline of Bitcoin became a financial burden to those who hopped on the bandwagon when the price of the coin was at its all-time high.
New reports shed a new light on recent mining trends. Seems like there has been a sudden uptake in cryptocurrency buyers. China’s second hand market for mining equipment has been exploding. Cold Siberia is not far behind. More and more people purchase used equipment, negotiating deals with hydroelectric power plants to make mining as cheap and efficient as possible. Bitcoin mining can turn into profit once again.
With a cheap hydroelectric power plant and pre-used equipment, miners can expect to pay as low as $0.037 per kilowatt hour (kWh) to supply their equipment with power, having pushed companies such as Hashage on the verge of an evasion of bitcoin mining in China.
“Xun Zheng, the company’s CEO, told CoinDesk that over the past month the firm has been talking to individual miners and larger mining farms with a total demand of over 1 million slots for deploying mining chips. According to Zheng, individual miners on average are looking to host 1,000 to 3,000 units of mining equipment each, while larger farms are eyeing at a larger scale of over tens of thousands of machines. He added although the exact electricity costs with local hydropower stations won’t be completed until the end of March, miners have already started looking for resources and negotiating deals with mining farms before the season comes so they have enough time to ship equipment to the mountains and set them up.”
Hashage have foreseen a push towards mining, proving to be lucrative in the instance that bitcoin will move up again.