BTC Miners Are Worried About Bitmain’s New Mining Rigs

BTC miners are worried about Bitmain’s power output and efficiency but also because of a possible delay in the mining rigs’ delivery. Following our Bitcoin news today, we are reading more about the miners.

Bitmain decided to use 5nm chips in their new machines and this decision was not well received by bitcoin miners. BTC miners are worried that the second-hand options will provide better value in terms of power efficiency. Bitmain has already created an AI subsidiary as an alternative business.

Exclusive:Bitmain’s Micree is selling the world’s first 5nm chip mining machine to Chinese miners, which requires advance payment and will be shipped in January next year, but the miners are afraid to buy it. Mircee is suspected of selling some problematic chips. pic.twitter.com/KmF5VdrfbD

— Colin Wu（WuBlockchain） (@WuBlockchain) September 9, 2020

The mining equipment producer Bitmain created new mining rigs and plans to use smaller computing chips compared to the older models which is why It got a lot of backlash among miners. The BTC miners are worried about the rigs’ efficiency and output according to reports by WuBlockchain. Micree Zhan said that the rigs use a tiny 5-nanometer computing chip which is similar to the one used in smartphones to complete thousands of calculations every second for mining Bitcoin. The company’s lineup uses larger chips seized 7nm and 12nm.

According to the blog controlled by jihan Wu：Micree is now close to bankrupt, so he cheated the customers and sold problematic mining machines in order to withdraw funds.

— Colin Wu（WuBlockchain） (@WuBlockchain) September 9, 2020

The report also said that Zhan is promoting the “first 5nm chip mining machine in the world” for Chinese miners but the miners are not happy with the product. He added that the chips are efficient in energy consumption but there’s also a potential for “serious problems’” because of their size. Jihan Wu, the co-founder at Bitmain and CEO of Matrixport, said that Zhan is now close to bankruptcy and is resorting to selling problematic mining machines to make some money.

The buyers confirmed the lack of interest in the 5nm mining rigs. Thomas Heller, a businessman, and director of the mining pool F2Pool said:

 “Bitcoin mining is now ultra-competitive and strategic players have longer time horizons than ever before.”

He added that it is risky to bet on the mining machines as an alternative and even second-hand options are available from ASIC manufacturers so they can be a better option. the CEO of Bitcoin mining firm Hashr8, Whit Gibbs said:

 “5nm chips would interest miners but I doubt any knowledgeable miners would allocate much capital to this run of chips, given that they’re unproven. It’s difficult to put much faith in Bitmain considering how the internal turmoil is leading to delayed orders. It is possible that Micree could ship these and find success but I don’t believe many miners would be willing to risk their operations on it.”