The cryptocurrency landscape continues to evolve amid shifting market dynamics, regulatory considerations, and technological upgrades. Recent developments highlight growing challenges in the mining sector—particularly around used mining equipment—and a parallel trend of institutional infrastructure maturing through secure custody solutions. At the same time, key blockchain networks like EOS are advancing scalability, and experts are re-evaluating the real challenges behind stablecoins.
Mining Market Downturn: Used ASICs Struggle to Find Buyers
The bitcoin mining industry is currently facing a downturn, with miners struggling to offload used hardware despite aggressive pricing. According to Tencent Technology, many investors are selling off their mining rigs due to unfavorable market conditions. However, even at heavily discounted prices, demand remains weak—so much so that secondhand machines now sell for less than newer models.
This oversupply has created a logjam in the resale market. Reports indicate that Bitmain, one of the largest ASIC manufacturers, has been clearing out its remaining S9 inventory overseas at cost price, primarily targeting large-scale buyers. The lack of demand reflects broader sentiment: profitability is down, energy costs are up, and the halving event earlier this year reduced block rewards, further squeezing margins.
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Bitcoin Network Hashrate Stalls Amid Market Uncertainty
Perhaps the most telling sign of mining sector stagnation is the plateau in Bitcoin’s network hashrate. Data shows that after peaking at 57.54 EH/s on August 27, the global computational power dedicated to securing the Bitcoin blockchain has not increased for nearly two months. In fact, on September 5, it dropped sharply to 42.06 EH/s—a significant decline that underscores weakening participation.
This stagnation suggests that many miners may have gone offline due to unprofitability, while others are holding onto equipment in hopes of a price rebound. The absence of new capacity additions signals low confidence in short-term BTC price recovery and highlights the sensitivity of mining operations to macroeconomic and market factors.
G4S Enters Crypto Custody Space, Signaling Institutional Confidence
In a major development for institutional adoption, G4S—the world’s largest commercial security company—has announced plans to launch a global cryptocurrency custody service called Secure Vault Storage. This move positions G4S alongside financial heavyweights like Goldman Sachs and Bakkt (backed by Intercontinental Exchange), all of which have developed or acquired crypto custodial infrastructure.
G4S’s entry is particularly significant due to its decades-long expertise in physical asset protection, cash logistics, and high-security storage. By applying these capabilities to digital assets, the company aims to provide institutions with trusted, compliant, and insured solutions for holding cryptocurrencies. This advancement lowers barriers for pension funds, asset managers, and traditional banks looking to allocate capital into digital assets without compromising on security or regulatory compliance.
Such institutional-grade services are critical for long-term market maturation and help bridge the gap between traditional finance and decentralized ecosystems.
Regulatory Nuance: Hong Kong Official Opposes Blanket Crypto Exchange Ban
Regulatory clarity remains a key hurdle for mainstream crypto adoption. In a recent interview with the South China Morning Post, outgoing Hong Kong Securities and Futures Commission (SFC) chairperson Ashley Alder emphasized that a complete ban on cryptocurrency exchanges may not be the right approach.
Alder noted that digital assets operate in a legislative gray area across many jurisdictions. Given that crypto platforms represent emerging technology and may not fall under traditional securities laws, regulators must adopt a nuanced framework rather than outright prohibition.
He argued that since cross-border cryptocurrency transactions already occur freely worldwide, banning exchanges within a single jurisdiction would likely drive activity offshore rather than eliminate it. Instead, thoughtful regulation focused on consumer protection, anti-money laundering (AML), and market integrity could foster innovation while managing risks.
This balanced perspective reflects a growing global trend toward regulated engagement rather than exclusion—an approach seen in markets like Singapore, Switzerland, and parts of the EU.
EOS Approves Major CPU Resource Upgrade
On the technical front, the EOS network has taken a significant step toward improved performance. A proposal to modify CPU resource allocation passed through block producer (BP) voting, with estimates suggesting available CPU capacity will increase by at least 2x.
This upgrade addresses long-standing concerns about network congestion and high transaction costs during peak usage. By making computational resources more accessible, the change enhances EOS’s appeal for decentralized applications (dApps), particularly those requiring frequent interactions such as gaming, social media platforms, and real-time financial services.
The successful implementation also demonstrates the effectiveness of EOS’s governance model, where stakeholders can vote on protocol improvements—a feature that sets it apart from more rigid blockchain architectures.
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Stablecoins: The Real Challenge Isn’t Technology—It’s Policy
Former Shanghai Stock Exchange chief engineer Bai Shuo recently shared insights on stablecoins, clarifying a common misconception: the core issues aren’t technical but revolve around policy and business design.
Bai outlined three primary types of stablecoins:
- Fiat-collateralized (e.g., USD-backed)
- Asset-collateralized (e.g., crypto or commodity-backed)
- Algorithmic (price-stabilized via code)
He stressed that the first two types function similarly to debt instruments, raising concerns about issuer suitability, leverage risks, and whether liabilities can reliably serve as payment mechanisms. Algorithmic models, meanwhile, rely on game theory and reserve adequacy—if reserves are insufficient during stress periods, such systems can collapse rapidly.
Most importantly, Bai highlighted that state-backed digital currencies (central bank digital currencies or CBDCs) offer a unique advantage: they enable programmable fiat money, filling a critical gap in the digital economy. However, they also create a dilemma by effectively legitimizing virtual currency ecosystems through interoperability—blurring lines between regulated finance and decentralized networks.
Ultimately, Bai concluded that while technology enables stablecoins, their sustainability depends on governance, transparency, and regulatory alignment.
Frequently Asked Questions (FAQ)
Q: Why are used bitcoin miners hard to sell?
A: Due to low BTC prices and high operational costs, many miners are unprofitable. This has flooded the secondhand market with supply while demand has dried up—even at steep discounts.
Q: What does G4S’s entry into crypto custody mean for investors?
A: It signals growing institutional confidence. With trusted names offering secure storage, more traditional financial players may feel comfortable entering the space.
Q: How will EOS’s CPU upgrade affect users?
A: Users can expect faster transactions and lower fees, especially during high-traffic periods. dApp developers will benefit from more predictable resource availability.
Q: Are stablecoins safe if backed by algorithms?
A: Algorithmic stablecoins carry higher risk because they depend on market incentives and reserve strength. Without sufficient backing, they can destabilize quickly under pressure.
Q: Could banning crypto exchanges stop digital asset trading?
A: No—due to the borderless nature of blockchain networks, bans often push activity offshore rather than eliminate it. Regulated frameworks are more effective than prohibition.
Q: Is Bitcoin’s hashrate recovery likely soon?
A: Recovery depends on price performance and energy costs. If BTC rebounds above key thresholds (e.g., $60K–$70K), dormant miners may reactivate and boost hashrate.
The intersection of infrastructure growth, regulatory evolution, and network innovation defines today’s crypto narrative. As legacy institutions build trusted access points and blockchains enhance usability, the ecosystem moves closer to broad adoption—but only if trust, security, and sound policy keep pace.
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