Bitcoin, Crypto currency, Blockchain

The price implosion – it leads to centralization?

Prices are falling and falling, and the market situation remains tense. As a reaction to the losses of many of the miners are now starting to take their Hardware either offline or even to sell.

The current rates make it for miners barely profitable to own Mining-to operate the Rack. So approximately $3244 to fall for the mines of Bitcoins in Louisiana, USA in electricity costs. Elsewhere, such as, for example, in Hawaii the prices are even at 9000$ – this makes mines in many regions with a current price of under $4000 per Bitcoin by no means lucrative.

Hashrate, where are you?

Currently, the global hash rate has reached its lowest point since August. This is probably not last with the Bitcoin Cash Hardforks, for which a lot of computing power from the Bitcoin network. A low expectant Hashrate can be a Problem for the main feature, the safety by decentralisation, as this indicates that a greater part of the Hashpower is generated on the basis of cheap electricity in China. This is the de facto control over network security in fewer and fewer hands wander.

Over the course of the Hashrate. Image source: https://www.blockchain.com/en/charts/hash-rate

The first victim

Almost a year ago, Giga watts, Inc. your first “GigaPod” at the Pangborn Memorial Airpod opened and put into operation.

The company planned a total of 17 such GigaPods and was collected in June 2017 after a successful ICO is over $20 million. Now, the Mining giant has filed for bankruptcy because of these liabilities in the amount of almost $70 million in the case of lenders open.

Months ago had announced this at the end: In August, the founder, Dave resigned Carlson and a short time later, almost 60 were laid off 70 employees.

The company was originally founded to provide smaller miners with cheap space for your Hardware, including a cheap and stable power supply.

In the current development Giga Watt Inc. not the only company that has to fight with such problems. We will keep you, of course, in the case of all other events to date!

Also interesting: Is Mining the world of space research in the way?

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