According to reports, crypto mining hardware prices are falling in China. As Crypto Crackdown 2.0 forces local mining companies close down, there have been reports that mining rigs were selling on the Mainland “like scrap metal.”
Odaily and Epoch Times, along with a report from broadcaster NDTV, show that mining hardware prices have dropped by up to 50% since April.
According to reports, the glut of second-hand machines on sale is the main reason why bitmain, the Chinese mining hardware company, stopped all sales late last week in an effort to stabilize prices.
Interviews were conducted by two professionals in the mining hardware industry (first names and company withheld). Surnamed Zhang, the first said that prices were falling due to the increased supply of second-hand equipment. She said that miners prefer to sell their rigs and cash in on them.
Surnamed Li, the second said that many people were now losing money and that many miners are still operating their equipment. He also stated that the crackdown had not “completely killed off” the mining industry on the Mainland.
However, Li remarked that mining Bitcoin (BTC) was a risky business, as it was relatively easy for power providers to detect. With teams of seemingly zealous inspectors making rounds, mining is now more risky than ever.
Many miners are now out of business and some are still talking vaguely about moving to Texas. One industry insider stated that “mining machinery is currently being sold as scrap metal in China.”
A Chinese crypto enthusiast anonymous stated that investors were feeling similarly down.
There was much laughter and chatter in investor group chats when bitcoin prices started to fall. Everyone was laughing about how to improve their position. […] This month, however, group chats have become quieter, with most people being silent […], and it seems like these groups may be disbanding.