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The mining sector is extremely volatile in the first quarter due to the corona virus and falling prices

May 3, 2020

Crypto research company TokenInsight released a report on the cryptocurrency mining industry in the first quarter of 2020 Changes in the hash rate of Bitcoin (BTC) and the Legacy ASIC models are discontinued.

However, volatility has had a greater impact on Chinese miners Antminer S9 was no longer profitable in March.

Miners using old ASICs are experiencing falling prices

The report describes that the Hash rate Bitcoin was “extremely volatile” in the early months of 2020 and ranged from roughly 70 exahashes per second (EH / s) and 100 EH / s.

The mining sector is extremely volatile in the first quarter due to the corona virus and falling pricesThe mining sector is extremely volatile in the first quarter due to the corona virus and falling prices

According to the report The profit margins of the old ASIC units are “reduced by the new generation of miners”..

TokenInsight notes that the profitability of Bitmain Antminer S9 was around 35% in the early months of 2020, before falling negative in the crypto crisis in March. However, the report states that S9 profitability recovered to around 20% in April.

The different geographic impact of COVID-19 on mining

While the report notes that the coronavirus pandemic “has had a negative impact on mining operations around the world”, Chinese miners were hardest hit, since many Western operators have adapted to the crisis Reorganization of its operations.

In early April, Cointelegraph reported that 40 mining operators in China were forced to shut down The fall of March made companies using the S9 unprofitableand F2pool reported that approximately 2.3 million miners had stopped working since March 10.

In addition, supply chain disruptions have caused delays in expected shipping dates for the next generation of ASICs scheduled for June, which has fueled forecasts.

ASIC manufacturers focus on new algorithms

Despite a 60% decrease in the number of new ASIC miners who go online quarterly, the company reports that The first quarter of 2020 was the highest number of active ASICs in the Bitcoin network in three years.

The report also identifies that Most of the ASICs currently available on the market are designed for algorithms other than Bitcoin’s SHA-256with 86 SHA-256 miners compared to the 97 ASICs available for different altcoins.

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