- Due to the volatility effect playing on the Bitcoin and its reduced market value, the stock value of the Bitmain Company has plummeted
- The current mining trend has seen completely nullified profits with increased losses through the consumption of more power
- If the price of the Bitcoin continues to fall below the shutdown price of the current best of approximately $ 2,600, then the Bitcoin network will come to a standstill
The Bitcoin market trend as affected all the players dealing with it, as the global pandemic affected the world from every corner, the economy of a country had no place to hide including the cryptocurrencies given their decentralized nature.
Bitcoin holders have lost a good investment when they were hoping for Bitcoin to retest at a higher rate but the long term investors and holders of Bitcoin have a fair chance if Bitcoin will gain back in market value which many of the crypto community believe.
The real effect will be felt by the Bitcoin miners; there are both individual miners and also chain companies that have taken up mining. In the current scenario where Bitcoin is continuously retesting to the negative values, the current mining trend has seen completely nullified profits with increased losses through the consumption of more power. Bitcoin when it was in the bull trend it supported all the miners with high profits but however now with the decreased activity and the reduced market price has all added to the loss in mining.
The current profit the miners are accumulating is very low compared to the bills they are paying using the equipments.
F2 Pool and their Mining rigs profitability
The leading mining community F2 Pool which is based on cloud mining has 45 mainstream Bitcoin mining rigs out of which 27 are from the top three mining rigs manufacturers namely Bitmain with their Ant Miner series, Canaan’s Avalon series of miners and the third one Yibang International’s Wing Bit series of miners.
Due to the volatility effect playing on the Bitcoin and its reduced market value, the stock value of the Bitmain Company has also plummeted after the demand for the mining rigs has steeply decreased.
The yet to be listed mining companies in the stock market will face a lot of difficulty if Bitcoin keeps decreasing from the current value which will redirect to less demand for the mining rigs.
In the current state, the individual miners have no option other than to shut down their mining operation and the large scale mining companies such as cloud mining and pools will face the same fate if Bitcoin retests to another low of 25% to 30%
If the price of the Bitcoin continues to fall below the shutdown price of the current best of approximately $ 2,600, then the Bitcoin network will come to a standstill. Technically, Bitcoin will enter a shock or death state.