As Supply Exceeds Demand, Mining Price War Ignites in Sichuan
Bitdeer appears to be the company to commence a price war. The company established a”Wet Season Combo” with an extremely low electricity price of 0.22 yuan on March 30, 2019.
This article was originally printed by 8btc and written by Chloe Jiang.
It comes as a surprise that you can find miners available than there is need.
Some industry insiders speculated that 80 percent of those mining farm operators in Xinjiang and Inner Mongolia would move to Guizhou and Sichuan due to this price gap. It was reported that lots of farm operators began their migration even before the Chinese Lunar New Year in February because they could not wait to earn a profit during the drawn out”crypto winter.”
It seems that the majority of crypto miners have learned to rate and investigate before impulse investing. The sector is growing more rational.
Published at Fri, 12 Apr 2019 16:07:50 +0000
The season in Sichuan starts in April and ends in October each year. In this time, the expense of electricity can be as low as 0.25 yuan to get a Sichuan mining farm, that needs to be very attractive for miners. The cost of electricity is approximately 0.35 yuan in Xinjiang and Inner Mongolia.
A bitcoin mining performance, the director of the mining farm of Bitmain, once stated the rainy season may not be just as much of a blessing for miners as thought. Mining farms in Sichuan report that the source of slots for mining equipment has surpassed the requirement, as he anticipated.
Moreover, there’s more bad news for mining farms: that the standard market price of electricity in Sichuan is more than 0.25 yuan, but many mining farm operators reduce this electricity price below the table so as to sell their mining slots quicker.
As stated by Tiantian Ming Farm’s founder, 500,000 slots have been additional by mining farm operators compared to the identical period last season but haven’t sold much of them. The balance of the supply and demand has been broken.