THERE HAS BEEN A LARGE INDUSTRY WIDE DOWNTURN IN THE MINING INDUSTRY
The prolonged downturn in mining has put most mining companies out of business.
According to reputable cryptocurrency news sources, the price of Bitcoin fell more than 70% in 2018, putting huge pressure on Bitcoin miners. Mining profits fell 50% in one month alone (November).
Mining companies took an estimated 1.3 million miners offline in that month alone.
The customers of these mining companies were told that their mining had been STOPPED and would not continue until more favourable market conditions emerged. Many of those customers are still waiting for their mining to resume after 12+ months!
The drop in mining profitability has forced operators to sell mining equipment at a loss. Yahoo Finance reported that mining operations in China are selling mining machines by the weight in kilos, as opposed to price per unit. Crypto miners are eager to sell models such as the Antminer S9, as these machines are becoming less profitable.
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Many of the Largest Mining Companies Have Stopped All Mining For Themselves and Their Members |
Many companies have come to the harsh realization that older mining equipment, such as S9 miners, have reached their “decommissioning price”, the critical Bitcoin price at which miners have to be decommissioned for lack of profitability.
On December 15, 2018, it was reported that 1.3 million Bitmain S9 miners were turned off because the Bitmain S9 miner costs more for most miners to run than the coins that it generates!
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Bitcoin Mining Equipment Like S9s Are Being Dumped Into The Streets And Sold by The Kilo or as Scrap |
Mining operations from large corporations to small facilities are selling their equipment on the second-hand market as they are unable to pay for the use of electricity and other operating expenses. Several mining facilities have been forced to close their doors as older equipment pays less while consuming more electricity.
WE ARE STILL MINING AND THINGS ARE GETTING BETTER WITH US, DESPITE THE HARD TIMES IN THE REST OF THE INDUSTRY.
In the end, Cryptocurrency mining becomes a price driver endeavour, a simplification best described by the survival of the fittest model. Only a small group of mining companies capable of withstanding the cryptocurrency winter will be able to remain in business.
The mining downturn affected numerous mining companies across the world, in China, Russia, Iceland and also in the States. Gigawatt, one of the largest and most reputable mining companies also failed as the markets went down.
Those who mined directly with Gigawatt had all of their S9 miners shut down more than a year ago.
However, despite the Gigawatt closure which caused great losses to the company, Galaxy Mining remains true to its promise to its members, allowing its members to mine and generate coins ever day, even with the older Bitmain S9 mining hardware.
Galaxy Mining has just begun its mining journey. While mining facilities around the world are closing their doors, Galaxy Mining is growing, turning profits and moving full steam ahead proving that in the worst market conditions, the best companies can be made.
Over the last several years, Galaxy Mining has become one of the most trusted names in the Cryptomining community, standing the test of time and continuing to advance in the mining industry.
As we see the Crypto Winter thaw and turn into the Crypto Spring, Galaxy Mining has positioned itself uniquely to ride the next wave of Crypto Mining profits, when the right market conditions occur.
Galaxy Mining has carefully planned for the future and always put its members first. Galaxy Mining has gone to extraordinary lengths implementing sophisticated mining technologies to its mining facilities.
Galaxy Mining continues to work on its member’s behalf to optimise its operational costs and negotiate better electricity rates for the benefit of its members and continues to add additional value for its members mining through its innovation.
