Over 1 million Bitcoin mining machines have been turned off in the last six weeks

The cryptocurrency mining industry is facing very heavy pressures…

Yesterday, we reported on the findings from BitMEX, that demonstrated how the mining hash rate of Bitcoin has fallen by 31% since the start of November. Bitcoin went from celebrating its tenth birthday to arguably one of the worst months of its existence, as its price plummeted hard in November. The price of Bitcoin is over $3000 on where it was a month ago, courtesy of a bitter civil war that was ignited by the hard fork of Bitcoin Cash.

But there’s a key further line in the BitMEX research that’s sending alarm through the marketplace. For the firm has concluded that over 1.3 million individual cryptocurrency mining machines have been switched off over the past few weeks, with it barely being commercially viable to mine Bitcoin in the current climate. The break even price for mining a coin needs to be at least around $1000 more according to estimates, and as such, more and more miners are sitting the current market conditions out.

That, in turn, is hurting the mining specialist companies. Just this morning, we reported how Bitmain was shutting down its Israeli centre as a consequence of the fall in crypto prices, and the mining giant is said to be facing significant financial pressures.

As BitMEX not unreasonably concludes in its overview of its research, “the mining industry may therefore be under considerable stress right now, due to the falling prices of cryptocurrency”.

Whether the miners involved have left the industry altogether or are waiting for a bounceback remains to be seen. The latter seems more likely. But it’s clear that right now, the mining industry is hurting.

Here’s that BitMEX report.

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