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Miners rebelled against Bitmain ...

Miners rebel against Bitmain for broken and defective goods
CONTENT

  • Bitmain let the miners down by sending spoiled goods

  • A third of Bitmain equipment failed in the first month of operation

  • Miners count losses from broken equipment

International consortium of news organizations developing transparency standards.

An international scandal between mining farms and the largest manufacturer of cryptocurrency mining equipment, Bitmain, is gaining momentum on the network. A third of the goods received in April turned out to be defective or completely broken. And this is on the eve of halving.

Miners rebelled against Bitmain ...

Miners suffer losses due to Bitmain

 

On the eve of the impending halving, many companies purchased large quantities of one of the newest Bitmain Antminer S17 + miners, and in the first month of operation, up to 35% of defects and non-working miners were found. This was announced in an exclusive comment for BeInCrypto by the co-founder of the consulting company for the mining of cryptocurrencies Wattum Arseniy Grusha.

“We ordered equipment for $ 600,000, and when we received the order, it turned out that more than a third of the goods did not work. There are less than 10 days left until halving, and we planned to improve our computing power, but Bitmain let us down a lot, ”said Arseniy Grusha in a telephone conversation.

He also described his outrage in a post on his personal page on Linkedin. According to Arseniy Grusha, the company acquired a batch of miners from Bitmain 420 S17 + (February 2020), which turned out to be defective.

Miners rebelled against Bitmain ...

“After 1 month 32 miners (7.6%) stopped working with the error ERROR_SOC_INIT. Another 99 (23.6%) work on 1-2 hashboards, 80% of them have this problem out of the box. 31.2% (every 3rd block !!) have defects. All miners have the latest firmware from Bitmain. I have never seen such a defective production. We bought these miners with the aim of making a profit, but instead we are suffering big losses, ”wrote Arseniy Grusha.

Now in the community of victims, the key issue is precisely compensation for losses, since losses of more than 30% percent, as in the case of Wattum, amount to hundreds of thousands of dollars. At the moment, Bitmain representatives do not give any comments on the current situation and the return of financial losses.

Representatives of mining farms and companies even created their own Telegram group, where they collect feedback from other victims in order to issue a collective complaint to Bitmain and receive compensation for such a failure..

Halving will change approaches to mining

 

The outrage of miners is quite justified. Halving Bitcoin halving cuts the number of new coins created and earned by miners in half. This happens approximately every four years and … More bitcoin, which will tentatively take place on May 14, will not only lead to a reduction in the reward for the mined block, but will also significantly slow down the generation of new blocks, as well as increase the complexity of solving problems for the extraction of blocks. To stay in this business, miners today need to change existing equipment to more advanced and energy-saving ones. Therefore, the choice of many miners just fell on the equipment from Bitmain.

Miners rebelled against Bitmain ...

However, a marriage of a batch of goods will lead to disruptions in the timing of the modernization of mining farms, and, consequently, to financial losses. In addition, this approach harms the reputation of Bitmain itself, which has positioned itself as a leading manufacturer of mining equipment. Bitmain representatives have not yet commented on the situation with defective miners.

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