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How Small Bitcoin Miners Lose on the Crypto-Currency Boom-Bust Cycle

How Small Bitcoin Miners Lose on the Crypto Currency Boom Bust Cycle The New Republic


At just about a year old, the miner represents a particularly rapid and fateful instance of the obsolescence that awaits every gizmo that alights on the cutting edge. Because of competition from faster, sleeker models now on the network, it can no longer mine enough bitcoins to pay for the electricity it burns. Even the newest miners may no longer break even, as the value of a bitcoin continues its free fall from a high of over $1,100 in late 2013 to less than $250 today; the 25 bitcoins that the network spits out about every 10 minutes may not be worth the trouble it takes to earn them. CoinTerra, the TerraMiner IV's maker, filed for bankruptcy on January 24. Like a used-up gold mine, the machine lends even the Bitcoin Center's busiest evenings the sensation of a ghost town.

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Just like in 1849. A lot of miners went broke looking for gold. 

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