QuadrigaCX Case Study: How to Not Lose $190 Million
This post refers to a [previous analysis](https://np.reddit.com/r/bitcoincashSV/comments/aa0t3w/bitmains_latest_attempt_to_avoid_bankruptcy/) of Bitmain’s Bitdeer cloud mining offering.
Only two weeks later, while daily costs remain at $17 per day, revenues unsurprisingly fell to $15.29 due to lower BTC prices and rising total hash rate (according to [cryptocompare.com] (https://www.cryptocompare.com/mining/calculator/btc?HashingPower=100&HashingUnit=TH%2Fs&PowerConsumption=0&CostPerkWh=0&MiningPoolFee=0).)
The resulting daily loss of $1.71 is equivalent to **1.4% per day**.
There is a large surplus of miners in the market that can be switched on at any time ([12.5EH/s](https://www.blockchain.com/en/charts/hash-rate?timespan=2years&daysAverageString=7), equivalent to approximmately 1 million antminer S9s.) The consequence is a hashrate that can rise without warning and cripple working miners’ profitability.
Buying a new miner in such conditions, accounting for the cost of hardware depreciation on top of electricity and maintenance costs, is guaranteed to destroy your capital.
Noobs really ruined the crypto culture they entered imo. The major one is they ruined the hodl meme which is still the best way for people to invest in actually good long term cryptos like BTC. Just cause they ran into a bunch of obvious scams at a parabolic top we all have to lose?