Bitcoin mining: legendary S9 enters terminal phase

The value of Bitcoin mining equipment decreases over time due to multiple factors. Among them, we can take into consideration the Halvings, and the increasing difficulty of the network. The most notable case is the legendary S9, which is entering the obsolescence phase.

Currently, this mining company of the manufacturer Bitmain, has decreased its value to limits unthinkable a couple of years ago. When it came on the market, these ASICs were worth almost $3,000. Now, miners are not willing to pay high prices for equipment that has ceased to be profitable in most countries.

Factors such as the cost of electricity have been key to accelerating the decline in profitability. But the speed at which this ASIC became obsolete increased after the third Bitcoin Halving on May 11, making S9 a cost of electricity for Bitcoin mining centers.

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The impact of Halving
The Halving is one of the most remarkable events in Bitcoin mining. In it, the Blockchain network’s reward for each block mined is cut in half. This happens because of the limited amount of BTCs available, before which, the network is programmed to decrease the emission and extend the mining until the year 2140.

So far, the Bitcoin network has experienced three Halvings, (2012, 2016 and 2020), in which the reward was reduced from 50 BTCs per mined block to 25, 12.5 and 6.25, respectively.

The Antminer S9 was launched in 2018 and, due to the low difficulty of mining and its efficiency at that time, was projected to be worth about $3,000 per unit. Currently, this Bitcoin System mining equipment costs less than $60.

In Latin America, some commercial companies offer the equipment at a price ranging from $100 to $200. However, sales of the equipment have decreased dramatically because in many countries, the cost of electricity is higher than the profits it generates.

Other Bitcoin mining equipment, such as the S17 and T17, which were launched last year, although still profitable, are beginning to follow the same path of discontinuity in a more accelerated process than the S9 itself.

Efficiency is the key to the Bitcoin mining market

For Bitcoin mining, the legendary S9 is a burden
After the mentioned four-year cut (Halving), S9 stopped generating approximately $65, and now reports between $30 and $35 (0.00100000 BTC every 8 or 9 days depending on the difficulty of the network). In countries where the electricity bill for the consumption of 2,370W is about $2 per day, the equipment gives a negative balance for those engaged in mining Bitcoin.

The fall of Bitcoin’s Hash Rate after Halving was precisely due to the massive disconnection of S9 equipment. There are exceptions, where this ASIC remains profitable. Such is the case of some provinces in China, which are now in the middle of the rainy season and the hydroelectric power is low.

It is expected that at the end of the rainy season in Sichuan, China, there will be more disconnections. The other case is Venezuela, where free electricity allows S9 generation to report a 100% gain. In that country, sales of this hardware continue to be stable.