Mining died?

ASICs are no longer profitable, the market is falling apart, and electricity bills keep coming. It's time to unplug the plug and say goodbye to your life forever. Mining-farm.

Around this situation today turned out to be the majority of private miners. But is it worth it to panic or just enough to wait out this difficult period? Now we will understand this.

Private miners on the way out

The mining industry is becoming more and more professional and only those who have a clear business plan and take into account the state of the cryptocurrency market will remain in it. That is, modest private miners have to turn off their equipment and urgently look for work.

Now there is a hard squeezing out of the mining of all those who did not bother to deal with such issues as upgrading equipment, finding cheap electricity and creating a financial airbag. Private miners are destroyed, just as the market is cracked down on hamster investors, who are susceptible to panic sales in an attempt to recover at least part of the money invested.

The tale called mining has officially ended and now is the time to soberly assess the situation.

Mining is dead but that is not certain

Let's take a look at the numbers, the worst thing is going with the miners of Ethereum, the price of which showed minus 90%. This clearly confirms the network's hashrate, whose performance has returned to almost the level of the beginning of this year. It turns out that everyone who this year decided to fix a little bit of the air has now changed their minds. But this is not quite the case; in practice, those who ignored the falling market were knocked out of the game and continued to mine as if nothing had happened.

If you look at the bitcoin hashrate, then things are somewhat better for him. Because despite the two-fold reduction in network capacity, since the beginning of the year, the hashrate has still grown exactly 2 times. The other day, the second largest reduction in the complexity of mining took place, when it was immediately lowered by 15%. This was supposed to add enthusiasm to the Bitcoin miners, but reducing the cost to 3400 $ and lower had a significant impact on the cost price.

All this leads to the fact that only major players remain in mining. Who can afford to buy the most modern equipment, work in areas with reduced tariffs for electricity and can attract investment, or for a long time to work in minus.

Also, the big miners have access to the over-the-counter cryptocurrency markets, where they sell coins at a higher price and they are not shy to trade futures for cryptocurrency, while playing for a fall.

What to do?

How to be in the current situation and how to survive the harsh cryptozyme? There are several options, which one will suit - this is a purely personal matter:

1. Temporarily disable the farm and wait until the recalculation of complexity occurs and the cost of cryptocurrency is restored. That is, just wait until the farm begins to bring profit again. This method is well suited to home miners who do not need to pay for the rent of the premises and the salary of technical staff. But we do not recommend selling equipment, because the prices have now fallen below the baseboard and when the market recovers, you cannot buy an installation with the same capacity for the money gained today.
2. Option number two, implies a job in the minus for the future, to recoup current costs, after prices go up. This does not mean that you need to drive yourself into unnecessary losses and take loans to pay electricity bills. But if you have a certain financial cushion, then it makes sense to keep the most efficient equipment in the ranks and continue mining to accumulate cryptocurrency. But be sure to check that it will be cheaper to get coins or just buy them on the exchange.
3. We need to look for ways to reduce mining costs in order to make a profit again. For example, find a cheaper room, achieve a reduction in the electricity tariff, switch to a pool with a lower commission, or consider the possibility of mining other cryptocurrencies. You can also rent your farm to those miners who are in better conditions and continue to earn.

Mining will return in full when the price of Bitcoin re-expands the market and the extraction of cryptocurrency will be profitable. But even then, mining will not be an easy walk and will require a serious approach to this kind of activity, as well as to any kind of technology business.