There clearly is overcapacity. That is why these miners are not selling. Breakeven used to be less than half the time dude and profitability was far higher. U now have to mine above the warranty period to break even. I have a friend mining in china and there are other cost such as building, maintenance, staff and reliability of electricity. It isnt just low electricity. It is also harder for them to find low electricity rates these days.

Dude, bitcoin difficulty has increased alot more than bitcoin price and there are tons of unsold asics unlike the past where it is out of stock. U can now get miners in 2 weeks and not 3 months....wat u mean by they cant get enough capacity? If people wanted more capacity, they can easily buy and push the delivery date 1-2 months out. That happened in the past, not now.

If u are referring to gpu, yes, there is a shortage but not asics. Holding bitcoin makes a lot more than buying.

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(Moderator's note: This post was edited by frodocooper to trim the quote from QuintLeo.)