Bitcoin price has rallied gigantically in the past month, which has created a higher demand for Bitcoin in markets, which has, in turn, catapulted the need for bitcoin mining equipment.
Since there is a dearth of the latest generation bitcoin miners, the demand for the older models of bitcoin miners has increased.
Old Bitcoin Mining Equipment in Demand As BTC Rallies
As Bitcoin reached the $20000 mark by the end of 2020 and is expected to increase humongously from now onwards, there is an increased demand for bitcoin mining equipment. The supply of the newest models of bitcoin miners is quite scarce, due to which there is an onset of a bidding war. The sales experts feel that the old mining equipment is also in demand since, at the current high Bitcoin price, even the old Bitcoin Miners can generate a high value of returns.
As per The Block Crypto report, an old Bitmain Antminer S9 can give a profit of $1.50 with $0.05 per kWh electricity. There has been an increase in the sale quotes for the old generation Bitcoin mining equipment, and the hardware launched in 2016-2018 is also in demand. The miner resellers have posted quotes for the old Bitcoin machines for the price of $80 to $130 on various sales channels; interestingly, these models sold at a lesser price in October.
The recent price hike in Bitcoin has opened the demand for older mining equipment in the secondary markets. Bitmain Antminer S9 markets are seemingly revived as the price of Bitcoin has increased substantially. Currently, Bitmain Antminer S9 can yield a daily profit of $1.50 per unit, which means that the new buyers of the machines can gain in around two to three months.
As Global market capitalization for cryptocurrency reaches $1 trillion with Bitcoin leading the markets, the demand for Bitcoin mining equipment would also increase in the future. Bitmain increased the prices for the s19 series Bitcoin mining equipment by 20 percent in December 2020.
The bidding war for Bitcoin mining hardware is on the rise as the supply of the latest equipment shrinks. Older mining equipment, which was seemingly to be outdated by 2020, has also seen a surge in demand.
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