One of the biggest name in the crypto mining industry, Bitmain is currently facing a devastating condition that could signal the eventual end of the biggest player in the Crypto mining market. The condition is so grossed that the mining giant is currently laying off half of its employees, some of which includes experts with an array of experience, from Bitcoin cash developers to technicians, a move experts said might lead to the shutting down of some of their mining operations.
Over the last few years, there is only one name in the mining industry that sends shivers down the spine of major competitors. Bitmain was the undisputed king of both the ASIC mining hardware and running quite a lot of crypto mining operations, which includes Bitcoin, Llitecoin, Bitcoin cash and another form of cryptocurrencies.
The mining giant reached its peak in late 2017 when most of its mining devices were sold out, some of which were sold for double or triple the retail price at various reselling websites.
But with the downward slope in the price of most crypto assets, Bitmain is currently experiencing a situation so dire it might lead to the eventual collapse of the mining giant, as devices such as the Antminer S11 is currently being sold for just $525.
Mining calculator, coinwarz.com revealed that mining bitcoin with an Antminer S11 and paying $0.01 per kilowatt for power would mean that it would require 2,161 days to break even. The numbers are not favorable for Bitmain, considering its budget, strength and financial muscle and most importantly, not good for its devices.
A Deal Gone Bad
Analysts are also of the opinion that the decision of Bitmain to invest heavily in Bitcoin Cash is a wrong investment at a very wrong time. The exchange giant dedicated a lot of time and effort into the project, including hiring development staff to support the currency, as well as dedicating mining resources towards it instead of BTC.
In the early part of 2018, Bitcoin cash was trading at $2400 each, but with the fall of the market, it is now trading at $200, with its lowest coming in December 2018, when it was pegged at $79. Though virtually all of the cryptocurrencies suffered in a way or two, Bitcoin cash was greatly affected and as such Bitmain’s investment amounts to a near- total loss.
Whispers in and around the crypto market are that the CEO might even be forced to step down, while the company shakes its administrative structure, to accommodate its present reality.
Though the present condition in the crypto market cannot be said to be the best, crypto enthusiasts are of the opinion that the industry will wither the storm and come out of it better than it went in.