Bitcoin mining equipment, such as the legendary S9, is resurrected after the rise in the price of this cryptocurrency. In countries where the price of electricity is not so expensive such as Venezuela, this equipment has not stopped working.
The price rise of the pioneering cryptocurrency has led to the resurrection of a significant number of obsolete miners. Bitmain’s legendary S9 leads the Bitcoin mining equipment to come back to life after qualifying as obsolete.
After the Bitcoin halving of May, a significant number of old machines became unproductive. In other words, the amount of Bitcoin that they generated was less than the operating expenses, so their operators disconnected them.
The S9, which goes down in history as the most popular, is one of the last to become non-profitable. However, the rise of Bitcoin’s price has allowed this and other models to return to productivity; mainly in China, the country that concentrates most of the hash rate of this cryptocurrency.
Reason Why This Bitcoin Mining Equipment Became Profitable Again
The growth in the value of Bitcoin has allowed this mining equipment to revive. However, this “resurrection” occurs only in places where the price of energy is not so high. For example, the average cost of the electricity service in China is about USD 0.06 per kWh.
The low cost of energy and the high price of the pioneering digital currency, plus the fact that China concentrates the highest hash rate, makes for the perfect mix. Other miners, like those made by Ebang and Bitfury, are joining the Antminer S9.
All that equipment with a hash rate greater than 10 TH/s is still active. Besides, the drop in the network’s difficulty makes it much easier for miners to get valid blocks.
This rebirth has led the price of these miners to increase. For example, in China, it would be possible to buy S9 equipment in the order of USD 30 to USD 60. On some reseller platforms, the price ranges from USD 200 to USD 800.
Other Places Where S9 Equipment Never Stopped Working
Even though electricity bills in many parts of the world are typically high, the same is not the case elsewhere. This allowed Bitcoin mining equipment like S9 to continue operating, even with Bitcoin at USD 9,000 after the May halving.
The most prominent place is Iran, where the government released its grip on mining and recently legalized the business. Similarly, some countries in the Caucasus close to Russia also offer low fees for mining Bitcoin.
The most emblematic case is that of Venezuela, a Latin American nation where the State subsidizes electricity. Currently, the country ranks number 10 in Bitcoin mining, and its hash rate is almost entirely based on S9 and other old-fashioned equipment.
It is theoretically a legal activity, and the Venezuelan government even encourages it, but there is the problem of crime. There have been cases of reports of alleged extortion and intimidation from police officers against miners.
By Alexander Salazar