Another major miner files bankruptcy as I predicted.
At the end of the third quarter, Core Scientific's assets stood at $1.4 billion, whereas its liabilities were about $1.3 billion.
The bankruptcy of Core Scientific, which accounts for about 10% of computing power on the bitcoin network
As Bitcoin miners drop out due to energy costs, network traffic will increase and go asymmetrical. About one million miners service 200 million wallets, a 200-1 ratio. Picture six miners (M) roughly co-located across the globe and their clients (C).
The 200 clients have a relatively short network path.
Now visualize half the miners gone.
Each miner now has twice the traffic (400 clients) higher cost and a potential congestion bottleneck. And clients are transmitting over 5x or 10x more distance, increasing network traffic and response time. Imagine a geographic colocation system operating in reverse.
Systemic failures often don't give much of a warning.