As a result of the increase in the price of the most popular of the cryptocurrencies, a significant number of obsolete miners were resurrected. The set of Bitcoin mining rigs that come back to life after being declared obsolete is spearheaded by Bitmain’s legendary S9.
It should be remembered that, after the Halving of last May, a significant number of old machines became unproductive. In other words, the amount of bitcoins generated was lower than operating expenses, so they were disconnected and considered obsolete.
One of the last to enter this contextualization of non-profitability was the S9, which goes down in history as the most popular. However, with the rise in the price of Bitcoin, this and other models returned to productivity, mainly in China, the country where most of the computing power of this cryptocurrency is concentrated.
Why did these Bitcoin mining rigs become profitable again?
As already limited above, the growth of the value of Bitcoin, allowed these mining equipment to revive. However, this “resurrection” occurs only in places where the price of energy is not so high. For example, in China, where the average value of the service is about $ 0.06 per kilowatt per hour.
The low cost of energy, plus the high price of the pioneering digital currency, added to the fact that China concentrates the highest hashrate, becomes the perfect mix. Along with the Antminer S9, other miners return, such as those manufactured by Ebang, Bitfury, etc.
In short, all those teams that have a hash greater than 10 TH / s, remain active. To all these factors, we can add the fall in the difficulty of the network, which makes the task of obtaining valid blocks much easier for miners.
An important aspect of the renaissance is that the prices of these mining companies have increased. For example, in China, the S9 could be purchased for the order of $ 30 to $ 60 US dollars. Now on some reseller platforms the price ranges from $ 200 to $ 800.
The writer Vincent He, referred in one of his post about the return of these Bitcoin mining equipment. Quoted in NewsBitcoin, he highlighted the qualities of Bitmain’s Antminer S9.
Vincent considers the S9 as one of the most stable and resistant equipment, which makes it a favorite for placing it in climates of any kind. For example, he explains, it predominates in desert places or places with extreme humidity. In these types of places, the machine performs very well despite dust or corrosion.
The size of the equipment saves space and its life span in extreme places such as those mentioned above is much higher than other ASICs.
«Miners like the S9 have a better stability radius thanks to their simple structure and relatively low computing power.», Points out Vicent He.
According to this author’s data, 70% of Bitcoin mining is done with equipment that, anywhere in the world, except China, falls into the negative profitability category.
Other places where the S9 have never been recalled
Although electricity bills in many parts of the world are often high, in other places they are not. All of this allowed Bitcoin mining equipment like the S9 to stay connected, even with Bitcoin at $ 9,000 after Halving.
Among those sites, Iran stands out, where state control has lifted its yoke against mining and recently legalized the business. Also, some countries in the Caucasus, close to Russia, also offer low rates for the extraction of Bitcoin.
The most emblematic case is Venezuela, a Latin American nation where electricity is totally subsidized by the State. The country currently ranks 10th in Bitcoin mining and its computing power relies almost entirely on S9 and other old-fashioned equipment.
The problem with the mining sector in Venezuela is that, despite the fact that it is an activity in legal theory and stimulated by the State, it suffers from crime. The cases of complaints for alleged extortion and intimidation by police forces against the miners are common.
Data to take into consideration
- On October 13, the price of Bitcoin was at $ 11,500. In less than a month, it has reached $ 16,000.
- This is one of the factors that have allowed the resurrection of many of the mining equipment considered “devalued”.
- Among other elements that help this return, is the fall in the difficulty of the network.
- Among the reconnected equipment is the legendary S9, one of the most stable and popular ASICs ever built.