After reaching the insane $40,000+ level in Bitcoin on the weekend, it has now gone into a major correction along with the broader market. The stock market is also down slightly over the bad news. At last check Bitcoin was now closer to $31,000 with ongoing downward pressure. The US dollar rose slightly in trading.

The Korean CryptoQuant suggests miner selling did contribute to the price drop. Given the private nature of digital coins its likely the trading has been more broadly based. Usually miners sell only to cover expenses and many simply pay expenses from personal income.

Most likely the selling was typical profit taking by investors. Bitcoin doubled in value in 4 weeks so its perfectly reasonable for it to see wild downward swings.

The trading volume was very high as noticed by the spike in earnings reported by know mining concerns. They said that higher trading levels earn more than quiet times.

Solar and power is increasingly popular with coin miners as it reduces the cost of grid power. The problem is that capital costs of the hardware are not considered in the analysis. Solar panels are not so expensive but large 200VA batteries add up fast. Wind can provide extra power when its available.

Some have install coin mining next door to power plants where bulk power is low cost. Larger data centers with rack mounted hardware typically have as many as four 2000W power supplies in one 4U server. Supermicro has a super server with SSD bays and room for 8 video cards. The machine is designed for server video cards which tend to be more expensive.

The Chinese 500.com (WBAI:NYSE) is buying some specialized machines for mining Bitcoin. The stock went from $2.50 to $12 on the news. 500.com is better known from its sports betting operations. If the deal goes ahead the acquisition would see 500.com acquire S17, T17 and S9 mining devices from Bitmain and M20s from MicroBT. The company is expecting to issue some stock to convert the capital costs.

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