Bitcoin mining machines for sale due to low cost

Bitcoin mining machines are on sale. Last month's slump in cryptocurrency prices has prompted manufacturers to sell computers at a discount, in some cases up to 20%, in recent weeks.

Both newer and slightly older models have been marked on the downside. Complicating the issue is the impending halving of bitcoins in May which will cut the mining reward of the network by half, reducing miners' earnings if the price of bitcoin does not increase significantly by that date.

An efficient market

It is important to note that most specialized bitcoin computers, known as ASICs, already had a price drop since the fourth quarter of last year, as manufacturers have adapted their strategies in line with the fluctuating bitcoin prices.

The price of these machines is based on the assumption that the buyer would need an average of 15 months to reinvest his investment in equipment. By keeping the repayment period relatively constant, manufacturers would adjust their equipment prices based on the market price of bitcoins and the level of competition on the network, the two factors that determine how much revenue a miner can generate in a day.

The miner price data compiled by the research startup TokenInsight show that, for example, Whatsminer M20S and AntMiner S17 Pro were priced at around $ 2,400 and $ 3,000 respectively in mid-October 2019. The price for both had dropped to around $ 1,500 in March of this year.

"ASIC miners have experienced a relatively large market devaluation since the fourth quarter of 2019. However, the miner market experienced a certain price level during the first quarter of 2020, despite the recent recession in the cryptocurrency market," he said. said TokenInsight analyst Johnson Xu. "Some experienced miners are currently looking to buy some used ASICs at a significant discount based on their carefully structured model."

We will witness a network in chaos

Blockware Solutions, a bitcoin ASIC miner dealer in North America who also operates mining facilities, said in a recent research report that the March market crash, coupled with the impending halving, led to a significant reduction in computing power. of bitcoin mining – which in the long run, could be an encouraging sign for market efficiency.

"If Bitcoin remains at lower price levels for 2-4 months, after halving, many miners operating at a loss will be forced to close," Blockware said. “After the closure of all miners who operate at a loss, the miners who survive will see significant margin relief. We will witness a network in the short term chaos, but adjustments to the difficulty of mining will restore stability once inefficient miners are closed. "