Coin City, Xiaoliang Mining Winter Reserve

Yesterday, the news of the bitcoin mining giant Jia Nan Zhizhi will go to the US in November. It is reported that the overall valuation of Jianan Zhizhi is at least 2 billion US dollars. In response, Kong Jianping, chairman of the board of directors of Jia Nan, said that he would "not comment."

Just half a month ago, the price of Bitcoin fell below $10,000 and was once squandered to $7,700, and is now hovering around $8,500. In 2 weeks, the people in the currency have already felt the signs of the market's coolness. Some people in the exchanges predict that the coolness may last until the end of the year.

Everyone knows that the market is cold, and the first to bear the brunt of the bitcoin production side of the mining industry, the existing pool has revealed the price of some mining machines. Compared to the industry optimism before the last bear market, this time, the reaction of the mine is much more sensitive.

It’s not just the move of Jia Nan’s listing to the US. On October 9th, Bittland and Matrixport held the Global Digital Mining Summit in Germany. Half a month ago, the coin-printing pool combined with the currency letter, Bit Micro, Jia Nan Zhi Zhi and other mining machine manufacturers gathered in Chengdu, also opened a summit.

During the two events, the miners showed up, revealing the meaning of the group to cope with market changes and discuss the industry.

Some mining machines hit the shutdown price manufacturers to push new products

The news that Jia Nan Zhizhi went public in the US successfully seized the currency and opened the OTC.

On October 10th, Netease Jianan Zhizhi will land on Nasdaq in November with a valuation of 2 billion to 3 billion US dollars. Although the media has confirmed the listing of Jianan Zhizhi insiders to the United States, The specific time was not disclosed. The joint chairman of the company, Kong Jianping, also said that “no comment”.

If the news is clear, Jia Nan Zhi Zhi is willing to become a Chinese company that has been accepted by the traditional capital market for the bitcoin mining business. Previously, the six-year-old miner giant tried to test the capital market in June 2016, August 2017, and May 2018, respectively, whether it was “backdoor”, listing on the New Third Board, or even going to Hong Kong. None of them have been completed.

In the past three years, Jia Nan Zhizhi, who has been busy with capital operation, has experienced the ups and downs of the currency market. He has experienced the quiet period of bitcoin sideways, and also passed the pre-dawn night before the take-off of the currency price. Towards the coldness of the deep waters.

In the half month before the news of Jianan’s listing in the US, that is, in the early morning of September 25, the price of bitcoin suddenly fell below 10,000 US dollars. The “waterfall” leaked to 7,700 US dollars overnight, and it has not returned blood.

Since July, the trend of Bitcoin has started to turn down.

The next day, the founder of the fish pond, Shenyu posted the data on Weibo. Based on the electricity fee of 0.35 yuan, according to the current currency price, Shenma M3 and Avalon A714 have reached 11.5T and 7.3T respectively. The shutdown price, that is, the cost of electricity is higher than the mining revenue. If the price of the coin does not rise, the miner starts to lose money.

Even more bleak is the Litecoin. On August 5 this year, after the LTC was halved, the miners’ awards were reduced from 50 LTCs to 25, and after half of the decline, the currency prices have been falling. The locomotives such as L3+ and L3++ have been higher than the mining costs. The miner ridiculed "half down and shut down."

However, Liteu miner Shi Lei (a pseudonym) told the Honeycomb Finance that the wet season has not ended yet, and many of the electricity costs are still profitable at 2 Mao per day. He revealed that after the L3+ is combined with the mxminer power consumption firmware, the same computing power can save about 3.0-3.6 kWh than the official default power consumption.

As for Bitcoin, it is far from the shutdown price. The data shows that the price of mainstream mining institutions is about 4,000 US dollars.

The people in the coin circle feel the coolness, and the miners are more sensitive. Everyone knows that the bitcoin market is not good, and the first to bear the brunt is the mining industry with high cost. Compared to the previous bear market, this time, the mine appears to react faster.

Just before the market crash, the coin-printing pool combined with the currency letter, Bit Micro, Core Dynamics Technology, Jianan Zhizhi, and Yibang Technology held a conference called “New Era Mining Summit·2019 Annual Festival” in Chengdu. Sichuan, where hydropower is abundant, is the center of the Bitcoin mine. The organizers of the conference also gathered well-known mining pool and mining machine manufacturers in the industry.

On October 9th, Bittland and cryptocurrency asset management platform Matrixport held the second global digital mining summit in Frankfurt, Germany. The scale of the summit was more international, and overseas mining practitioners also appeared on the spot.

In the mining machine market, the mining machine manufacturers shipped a lot in the second half of this year, and the bit micro-Shenma mine machine revenue reached 3 billion people in the third quarter. At the mining conference in Chengdu, it was reported that the current mining machine market has sold 4 billion yuan in futures.

Mining machine manufacturers still have no intention of slowing down. At the German Mining Conference on October 9th, Bit Continental co-founder Wu Jihan announced that it will officially release two new ant mining machines S17+ and T17+ on October 11th, Beijing time. The new mining machine supports SHA256 algorithm and can dig bits. Encrypted digital currency such as currency (BTC) and bitcoin cash (BCH) is expected to be shipped from December 1st to 10th.

Near the end of the flood season

A large number of futures are waiting in line to enter the mine. This means that once these mines are turned on, the overall calculation power of the POW mechanism currency will increase, and the difficulty of mining will increase accordingly. The new miner's return period will be lengthened. .

Taking Bitcoin as an example, the current currency price is $8533, and the overall calculation power is 90E. Based on this calculation, the return period of the new miner is about 10 months. If the currency price continues to fall, the risk of miners will increase. In May next year, the bitcoin mining award will be halved again, from 25 BTC to 12.5 BTC per block. Some mining machines may have halved and the mining revenue will be reduced.

The head of the mine meeting, Yu, said directly that if the new mining machine can't return to the original before halving next May, it would be good to buy the coins.

The halving of Bitcoin has always been seen as a positive for investors in the currency circle. In theory, the BTC price becomes higher on the premise that the production volume is reduced, the market supply is reduced, and the demand is not reduced.

However, some industry insiders are not optimistic about the judgment that "BTC is halved and prices are rising." At the German Mining Summit, Wu Jihan said that it is very important for miners to have a long-term perspective. "I have a negative attitude towards halving the price of the currency, but I still value the value of Bitcoin in the long run."

Seasonal changes are also a topic that miners can't escape. Miners who rely on hydropower to operate mining machines can get cheaper electricity prices during the wet season. At present, Sichuan, where the mine is concentrated, the flood season is coming to an end and the electricity bill is bound to rise.

The thermal power in the north is not optimistic. In August of this year, a bitcoin mining and rectification document jointly issued by five ministries and commissions in Inner Mongolia was circulated on the Internet. The document shows that the first phase, from September 3 to September 25, 2019, is the self-examination and self-correction phase of the various leagues, and will be fed back to the Ministry of Industry and Information Technology before September 30; the second phase, October 10, 2019 Until October 30, during the supervision and rectification phase, the relevant departments of the autonomous region will conduct a joint inspection team to conduct supervision and form a report on the rectification and rectification of the retreat.

Net pass to clean up mining documents

The Honeycomb Finance contacted the relevant departments in Inner Mongolia. The staff said that they had issued relevant documents and were preparing to clean up.

In fact, China is incorporating bitcoin mining into the capacity-cutting industry. On April 8 this year, the National Development and Reform Commission disclosed the Catalogue of Guidance on Industrial Structure Adjustment (2019, Draft for Soliciting Opinions). The virtual currency “mining” that was gradually retired by the policy was also eliminated in the industry. It has been included in the “Lost Production Process Equipment” column.

Then, Sichuan began to renovate the mine. Beginning on May 27, a working group was established in various departments of Kangding City, Ganzi Prefecture, and began to investigate and rectify the Bitcoin mine on the Dadu River. Some miners chose to relocate.

Miner Shi Lei told Hut Choi that the large mines in Inner Mongolia are still running and the electricity price in Xinjiang has started to rise. He also mentioned that the above documents may only be for National Day. However, some senior miners have mentioned that thermal power mining is not safe, he predicted that the thermal power mine may be followed by a thunderstorm.


New capital is eyeing the old winter miners of the mining circle

The currency circle always expects traditional institutions to enter the market to inject funds, but the mining circle has always maintained a closed practice. Traditional institutions have huge financial strength. The large-scale purchase of mining machines also means that mining plates are shrinking and small miners are struggling.

On September 29, Koala Finance reported that a sponsor of a mine in Central Asia revealed that Hon Hai Precision Group, Foxconn, had 300,000 mining machines in the mine. Large institutions investing in mining gradually surpass individual investment, and some practitioners said that Mining 2.0 is coming.

However, the mining industry believes that “traditional institutions are too confident”. Once the price of the currency rises, the computing power will increase exponentially. “It’s not what they think. In addition, how to build a mine, how to power up after the construction It is very complicated. The mining mines are carrying hundreds of millions of yuan into the market, and finally lose their blood and leave the market."

In addition, the emergence of the cloud computing platform is also changing the mining circle pattern. Since the beginning of this year, a number of cloud computing platforms have made their debut in the currency circle. Bit deer, future mines and XMX launched by Yuhong have adopted the model of selling and leasing computing to attract investors from the currency circle to participate in mining. Some computing platforms, such as future mines, even issued platform coins to motivate users to participate.

Shi Lei believes that the impact of these platform mines is not great. He explained that the computing power of the cloud computing platform also comes from the big mines. They just package the computing power into a "financial product" premium and sell it to Xiaobai. "There are many pyramid schemes."

Ren Silin, commercial director of the future mine, said that in the future, the mine will cooperate with large enterprises or local governments to get cheap electricity from the market, and build mines in compliance, or even produce mining machines themselves to achieve the lowest comprehensive cost and the largest profit. "The future mines are also within their own scope, expanding their mining as much as possible, allowing more people to participate in the bitcoin mining."

It seems that Xiaosan can also participate in mining with the help of the cloud computing platform, but how to deal with the risks?

In this regard, Ren Silin said that if the price of the currency falls to the mining cost price, the possibility of downtime is not ruled out, but the user's contract period will be extended to control the user's loss.

The sharp drop in Bitcoin has already revealed the coolness of the market. Whether it is Jianan Zhizhi, which is listed in the US, or the Bitian mainland, which has stepped up the launch of new mining machines, it also includes the mining pools and miners who are meeting in the "cluster" and are in Bitcoin. The mining industry at the production end has already shown the status of winter storage and responded to market changes.

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Author|JX kin

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