The recent cryptocurrency downturn in the past couple of months has made a dent in the profits of the cryptocurrency mining industry. The cryptocurrency mining was already running on wafer thin profits due to the fall of cryptocurrencies throughout the year. However, in the last couple of months, cryptocurrencies have fallen more than 30%. Owing to this very reason, cryptocurrency mining in most of the cases is not profitable these days. If cryptocurrency mining operations are ceased, the blockchain cannot operate efficiently. The question which arises is where is cryptocurrency mining industry headed after this downturn?
Where is cryptocurrency mining industry headed after recent downturn?
Among the many options which you have when it comes to buying a cryptocurrency mining rig, only a couple of them are able to generate a profit at the current low prices as well. These are Ebang Ebit E11++ and ASICminer 8 Nano 44Th. The profit range is between $ .15 per day to $ .60 per day. Considering the fact that most of these cryptocurrency mining rigs cost around $ 2000, this is simply not a good deal. At the same point in time, after a period of time, these rigs will be useless as well.
The problem is that for many of the cryptocurrencies, cryptocurrency mining is a necessity. It is what keeps the blockchain running. If there is a reduction in the mining activity, the blockchain can slow down as well. This will hamper the various functions of the blockchain. As a result, the cryptocurrencies can fall even more.
Only a recovery from these levels can help the cryptocurrency mining industry. There is already news pouring in from all over the world that the cryptocurrency mining companies are not going ahead with their planned expansions. Moreover, even the larger companies like Bitmain are laying off people. Recently, it stated that it will be closing it’s development centre in Israel. Bitmain is a cryptocurrency mining rig manufacturer.
Evidently, the demand for cryptocurrency mining rigs has decreased significantly which is causing it to lay off people and close the centers.
If the cryptocurrencies fall at this pace, it will be very difficult for the miners to continue with the mining operation. This can endanger the entire blockchain technology and its credibility. It remains to be seen whether any jump from these prices will come to the rescue of the cryptocurrency miners or not.