China: Cryptocurrency Mining Machines Reportedly Being Sold According to Their Weight

  • Cryptocurrency miners in China are reportedly selling their old ASIC models per their weight.
  • This as cryptocurrency prices have plummeted this year, and energy costs are rising for some.

Cryptocurrency mining machines are reportedly being sold in China according to their weight as miners who haven’t been able to make a profit are seemingly getting rid of their old models to get some of their investment back.

According to local news outlet 8BTC, old ASIC machines like the Antminer S7, the Antminer T9, and the Avalon A741, have reached what’s being called a “shutdown price,” a price in which miners aren’t able to cover the energy costs associated with running these machines.

As such, they’re being sold for scrap metal and other parts. Per local reports, the miners are being sold for as little as one-twentieth of their original value. While large mining operations are still running, small and medium-sized ones in China’s Xinjiang and Inner Mongolia are struggling.

Per the local news outlet, some miners are being sold for anywhere between $15 and $100. Initially, Antminer T9’s – which are currently being sold for little over $200 on Bitmain’s website – were going for over $1,500.

A video posted to microblogging website Twitter by the Managing Director of Danhua Capital, Dovey Wan, shows how the machines are being handled to then be sold:

While some claim the video was taken months ago, at a time in which floods in Sichuan affected cryptocurrency mining operations , the founder of F2Pool and Bixin Pool are said to have confirmed the video’s authenticity.

Notably, at the time of the floods Jiang Zhuoer, the owner of the prominent mining pool BTC.Top, clarified these had “little impact on bitcoin mining farms.” In a subsequent tweet Wan revealed that in China electricity costs are currently up for cryptocurrency miners, as some rely on hydroelectric dams.

Miners haven’t been able to make a profit as while energy costs are up, cryptocurrency prices are down. Bitcoin, the flagship cryptocurrency, saw its price drop from about $13,000 in January to roughly $4,500 at press time.

Per 8BTC, the term “miners sold by kilo” started trending on China’s top search engine Baidu after the founder of F2Pool tweeted out a picture revealing that some machines were being sold according to their weight.

In a Reddit thread where the above video was shared, some users discussed how the market’s downtrend has been affecting cryptocurrency miners. One, in particular, revealed he still uses his miner as “it’s cold and mining is cheaper than running a heater.”

Microsoft's Bing Reportedly Blocked Over 5 Million Cryptocurrency Ads Last Year

Francisco Memoria

Microsoft’s search engine Bing has reportedly blocked over 5 million cryptocurrency-related ads last year, as a result of a ban the search engine enacted in an attempt to protect its users from fraudsters.

According to Bing’s ad quality review, the company’s bad account takedowns doubled in 2018, with cryptocurrency, weapons, and third-party tech support scams being the main problems it faced. Overall, Bing suspended “nearly 200,000 accounts” last year, and removed 900 million ads from its platform.

As covered, Bing banned cryptocurrency-related ads back in May, in a move it claimed was made to protect users from scammers, as the crypto market being unregulated meant cryptocurrencies “present a possible elevated risk to our users with the potential for bad actors to participate in predatory behaviors, or otherwise scam consumers.”

At the time Melissa Alsoszatai-Petheo, who published the company’s blog post on the move, wrote:

To help protect our users from this risk, we have made the decision to disallow advertising for cryptocurrency, cryptocurrency related products, and un-regulated binary options. Bing Ads will implement this change to our financial product and services policy globally in June, with enforcement rolling out in late June to early July.

The move saw cryptocurrencies join other questionable products and services Microsoft banned from its platform. These include Ponzi and pyramid schemes, and the mentioned third-party tech support scams.

Bing notably banned cryptocurrency-related ads following bans enacted by search giant Google and social media giant Facebook. These two firms have since started allowing crypto-related ads from a few companies.

At the time, various cryptocurrency associations threatened lawsuits against the tech giants over what they claimed to be “cartel collusion” against cryptos, made in an attempt to manipulate the market.

Although Microsoft’s search engine has banned crypto ads, the tech giant itself has been accepting bitcoin payments since 2014. Its website even has a how-to page walking users through the process of topping up their accounts using BTC.