Bitcoin has been designed to be a safe heaven and a space of reliance just after fiat. But the price crash of cryptocurrency that took place last month proved the opposite of its motto. Being frustrated about the pricing outcome of Bitcoin, miners just started marking down their machines of both newest models slightly older machines to sell. But the sophistication is working inside mind of miners when they think of upcoming halving that cuts bitcoin’s price in half. An unknown optimism is playing inside mind of miners that whether the price of bitcoin will start increasing significantly once the halving is over. For example, DJ Miner has faced price cut by 20 percent after the bitcoin’s crash.
Will efficiency be back?
Most ASICs had already been dropping in price since the fourth quarter of last year as manufacturers adjusted their strategies in line with bitcoin’s price swing. These machines are priced in such a way it will take 15 months to buyers to make back their equipment investment and after the payback period, manufacturers would adjust the prices of their equipment on the basis of the bitcoin’s market price and level of competition on the network.
The mid-October 2019 data is showing that the Whatsminer M20S and the AntMiner S17 Pro were priced at around $2,400 and $3,000 respectively and both had dropped to around $1,500 as of March 10.
A market devaluation reportedly caught sight of ASIC miners back in Q4 in 2019 but the miner market has found some level of price floor during Q1 2020 in spite of the recent crypto market downturn. However some experienced miners are presently looking to purchase some secondhand ASICs at a discount according to their carefully structured model.
Recent price crash and upcoming bitcoin halving caused a significant decline of BItcoin’s mining computer power which could be an encouraging sign for the market’s efficiency. To date many miners have shut off their mining activities and it is expected that if the current situation continues even after halving done then many miners operating at a loss will be forced to shut off. This will create a short-time chaos in the network. Newly mined Bitcoin is now being distributed to and accumulated by the most efficient miners with healthy balance sheet and so it is hoped that after the Bitcoin network experiences sustained favorable competition adjustments, the likelihood of bottom in bitcoin’s price is enhanced.