Washington-based Salcido Enterprises CEO Malachi Salcido states that cryptocurrency miners are now being “flushed out” of the market after Bitcoin suffered its latest price plunge.
Usually, November is considered as one of the most profitable months for Bitcoin investors. However, this November has seen the worst single-month decline since August of 2011, nosediving 37 percent in just one month. Despite Bitcoin experiencing a decline of more than 70 percent from its record high of $20,000, a full-scale panic has not ensued until it crossed the $6,000 threshold.
The price of Bitcoin is now way below the price which can be considered profitable for Bitcoin miners.
Salcido says that only companies like Salcido Enterprises are now “entering in the phase when there’s a flushing out of the market.” According to a December 3 report by Bloomberg, Salcido also states that a “relatively few” businesses are expected to “come out the other side.”
Salcido claims that the 22 megawatts of energy his company has generated making it one of the biggest crypto miners in North America and the U.S. Salcido Enterprises is presently working on adding 20 megawatts more of power.
As Bitcoin prices continue to drop, reaching dangerous levels of unprofitability for many miners, only companies like Salcido Enterprises can sustain their operation because of its access to low energy cost and its remarkable scale. The Washington-based crypto mining firm’s base operations are situated adjacent to the Columbia River and have access to the country’s lowest electricity rates.
Salcido only needs to pay a mere three cents per kilowatt hour for its mining operations. This is approximately half the price Bitcoin miners in China need to pay.
Salcido has already witnessed three other Bitcoin price crashes and now foresees it will hit the “bottom” this coming February.
The CEO further states:
“I expect where we are at to possibly get a little worse before it gets better.”
Meanwhile, Autonomous Research LLP, independent Blockchain research and analysis firm, projects that 100,000 individual miners have shut down operations after Bitcoin’s latest price dive, which also caused retail investors, speculators, miners, and even hedge funds to give up.
The exodus of minor crypto miners actually reduces mining problems and boosts profitability for major entities like Salcido Enterprises and Chinese mining giant Bitmain. However, as the number of companies mining for Bitcoin continues to dwindle so does those handling the network’s hashrate, which only makes virtual assets more vulnerable to 51 percent of attacks.
With this, miners with at least a 51 percent majority control of the network’s hash rate may gain the capability to modify transactions on the Blockchain, which can give them the power to steal billions of dollars from Bitcoin investors in the process.