Mining Machines on 50%-Off Sale in China as Bitcoin Dive Below $7000
Bitcoin plunged for a fifth day, dropping below $7000 for the first time since November and leading the crypto market weaker. The biggest cryptocurrency sank as much as $1800 by over 18% within a day to $6600, according to Bitstamp pricing. As of Monday, it has wiped off more than 60% of its value from a record high nearly $20,000 last December.
According to Sina Tech, mining machine vendors in Huaqiang North Commercial Area (HNCA), Shenzhen, Guangdong, the world’s largest mining machines hub, are suffering from it. Previously high-priced mining machines are on clearance sales at the sound of bitcoin diving.
Antminer A3 for sale on January 17, 2018 with the factory price of 20,800 yuan is limited to 6,000 units both at home and abroad. The surging of bitcoin was creating a growing market for mining machines. In a visit to SEG Plaza in Huaqiang North two weeks ago on Jan.24 when mining machines were in short supply, an A3 was priced highly at 40,000 yuan at that time.
Russian buyer’s quick buy and urgent sell
Wang, a retailer there said he stocks mining machines directly from manufacturers or from his peers, while the price fluctuation following speculative bitcoin can bring them quick cash but also great loss.
His fears have arrived. The price of A3 is dropping below 30,000 yuan from a ATH 45,000 yuan on Jan.26 as bitcoin went lower. It is fast changing every day, dropping by 1000-2000 yuan per day.
A true story goes among mining machine vendors in Huaqiang North that,
A Russian businessman purchased a batch of Antminer A3 produced by Bitmain in Huaqiang North at the high price of 40,000+ yuan. He was supposed to resell these mining machines to miners back in Russia. But during his stay in China the market has sharply turned, A3 is priced at lower price day by day as the crypto market weakens. Every day sees the price erased 1,000 yuan to 2,000 yuan. The Russian businessman had no choice but to sell all his A3 on site in Huaqiang North at the price of 30,000 yuan to prevent from further loss.
Not so happy for the coming new year
Chinese Lunar New Year is around the corner, and many workplaces have been closed for the grand holiday. Wang worriedly said,
the plaza would be closed for Spring Festival since Feb.10. I still have over 40 units S9 in my store, which actually have already been sold days ago, but the buyer who has paid the down payment (ranging from 30% to 50% of the purchasing payment) are still hesitating whether it is a good timing to take them as bitcoin keeps slumping. When buyers come to take their orders but find the price drop is more than the down payment, they would simply breach the contract.
It is commented that the mining machine business is also speculative like crypto market. Mining machine vendors are now caught by the bitcoin sluggish and their winter is now coming.
Cryptocurrencies are currently under tightening regulation globally. According to a Sunday report by the Financial News, a newspaper run by China’s central bank, China is aiming to block both domestic and offshore websites related to cryptocurrency trading and ICOs. India, South Korea, the United States and Europe have also issued statements regulating cryptocurrencies, triggering a string of recent declines in the crypto market.