Bitcoin (BTC) is not Santa Claus, but it is making people happy at the end of 2020 with a bullish rally that has taken its price above $ 20,000. HODlers do not regret holding their Bitcoins upside down and upside down, traders are also profiting from the increase in the price of BTC. Manufacturers of mining equipment, for their part, see their orders explode.
BTC miners line up behind Apple
The demand for used mining equipment is increasing while the two main producers on the market, Bitmain and MicroBT, are out of stock until May 2021.
The Marketing Director of Bitmain, Nathaniel Yu, indicated that the increase of more than 166% of the price of Bitcoin is one of the key factors behind this increase in demand, especially for the 19 series of Bitmain.
An executive manager of the mining company Foundry, Kevin zhang, mentioned this multiplication of orders due to a Bitcoin bullish.
But the production of new machines is proving complicated due to the competition on mining chips.
These 7 and 8 nanometer chips are also in high demand by tech giants like Apple or Nvidia who are generally priority customers.
More volatile than Bitcoin
The co-founder of the mining software company Luxor Technologies, Guzman Pintos, indicated that the level of activity in these markets is at the level of the pre-halving period.
The director of operations HASHR8, Thomas heller, mentioned that such a level of activity had not been observed since the end of 2017, during the last peak of the market.
This strong demand is reflected in the high volatility of the prices of ASIC which can easily vary from 10% to 20% on a weekly basis. Heller indicated that this volatility often exceeds that of Bitcoin.
CEO of Blockware Solutions, Mason jappa, said the price of used machinery has risen 40% to 50% in recent months. He also added that at this point the mining market was largely favorable to sellers.
Is it more profitable to sell mining equipment than to trade or mine BTC? Bitcoin’s scarcity increases with halving, with the gargantuan appetite of institutional investors like Grayscale, but also with the explosion of orders for mining equipment and the constraints associated with their manufacture. Peter Schiff is right: Bitcoin is not 2.0 gold. Its value and rarity should exceed that of the yellow metal.
Litecoin, welcome in the Silver Age