Bitcoin Miners is being flushed out of the market

CEO of one of the largest crypto currency mining companies in North America says miners are being flushed out of the market after Bitcoin's last fall in prices has gone.

Bitcoin Mining No Longer Profitable, Miners Exiting A Mass

While November has usually been among the most profitable months for Bitcoin investors lately, this November led to the worst one month decline since August 2011 and dropped 37% in a month. Even though Bitcoin has already fallen over 70% from its full-time $ 20,000, full-blown panic did not experience this critical support break of $ 6000.

With this latest decline, Bitcoin's price is well below the price at which Bitcoin mining gives A profitable return on investment, which currently fluctuates around $ 4,500.

Malachi Salcido, CEO of Washington-based cryptocurrency mining company Salcido Enterprises, said that companies like his own are "entering the phase when there is a flush out of the market" and that only "relatively few" operations will come beyond the other side, "reports Bloomberg.

Related Reading: November Crypto Review: One-third of the Market Deleted

According to Salcido, the 22 megawatts stream his company currently has distributed made him one of the largest miners in North America and the United States. The Washington-based cryptocurrency mining company builds another 20 megawatt power.

With Bitcoin prices plummeting and reaching levels of unprofitability for most miners, only those – Salcido Enterprises – who have access to low energy costs and have a significant scale, can be in operation. Salcido Enterprises base operations are located near the Columbia River and belong rer some of cheapest electricity prices in the country.

Salcido pays only three cents per kilowatt hour, which is about half of what Bitcoin miners pay in China.

The mining company has undergone three other major Bitcoin price violations previously, and predicts that "The Bottom" will be "in February."

"I expect where we are going to get a little worse before it gets better," said Salcido.

100,000 individual miners turned off leaving Bitcoin Sensitive

The Blockchain Research and Analysis firm Autonome Research LLP estimates that 100,000 individual miners have closed stores following this latest fall in Bitcoin, leading to retail investors, speculators, miners and even hedge funds must surrender.

Bitmain Launches the Crypto Index for Investors

As less miners leave the market, mining weaknesses and profitability increase for the largest units, such as Salcido and the Chinese based mining giant Bitmain. But with fewer and fewer businesses like Bitcoin mines and thus controlling the network's hashpower, crypto access is increasingly susceptible to an attack of 51 percent.

In an 51 percent attack, miners with at least 51% majority control of the network's hash rate would have the opportunity to change transactions on blockchain and potentially steal billions of dollars from Bitcoin investors in the process.

  Selected image from Shutterstock. 

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