Coin Indian mining pool CEO talks about the self-cultivation of Hodler in the mining circle on the eve of the halving | Chain Node AMA

In 2019, the market price is unfavorable, and the difficulty of mining continues to increase. But miners still clenched their teeth and wanted to continue to enjoy the last 12.5 BTC block rewards before halving this year. Bitcoin's entire network hashrate reached a new high. What will happen to the "life and death gamble" in the mining circle brought by halving in 2020? What are the other options for miners and retail investors in the current market? On the afternoon of December 31, 2019, Pan Zhibiao, the founder and CEO of Coinprint Mining Pool, visited AMA as a guest node and discussed with the community users about the self-cultivation of hodler in the mining circle.

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Miners are sometimes cute and may be the heaviest group in the industry.

The middle of the chain circle and the coin circle is the mineral circle. In fact, the circle of miners is not large. Pan Zhibiao described that, in fact, most of the mining circles know each other. Tiannanhai Beidi participates in the conference, finds resources, likes drinking and bragging, sometimes cute, and may be the heaviest group in the industry.

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However, this group of cute miners is facing the current cold market, but it is difficult to be cute anymore, and even many people are mining at a loss. If the continued market conditions continue to slump, will the miners' enthusiasm greatly decline or even choose to shut down and leave the market? According to Pan Zhibiao:

At present, if the price is hovering at 7000 US dollars, it will indeed increase the cycle of the machine and accelerate the out of the old machine (the output is not enough for electricity). For investors who are not optimistic about the market behind Bitcoin, some people will choose to sell and leave the market, but there should not be many. Whether to shut down is directly related to the difficulty of the currency price. Many miners still report to the group for heating, recharge their faith, and wait for the market to pick up.

On the one side are hodler miners who are getting more and more frustrated under the spirit of spiritual victory, and on the other side are ordinary users who run "make money early". For ordinary users who want to enter the circle, in the current special form, compared to mining by themselves , investing directly through the purchase of computing power has become a popular way of Tuning coins. In the live broadcast of the major events in the mining circle in 19 years ago, it was also mentioned that 2019 can be said to be the first year of cloud computing power. Regarding the bottleneck of cloud computing power purchase and mining computing power growth that users care about, Pan Zhibiao said:

The amount of funds for ordinary people is small, and retail customers generally do not accept loose orders. You can choose reliable cloud computing power or buy Bitcoin directly. However, note that the biggest risk of cloud computing platforms is that they can not fulfill their promises, they may lose power, run away, have debt disputes with the machine, and even the natural disasters overwhelm the site machines. The bottleneck of the growth of computing power is mainly the currency price. If the currency price does not rise or fall, the computing power stagnates. Power load and chip capacity are physical bottlenecks. At present, power and chip capacity should not become bottlenecks for the time being.

Mining has never been a profitable business

Pan Zhibiao concluded that for miners, the upcoming halving means "the same electricity bills, half the income, and even greater profit decline." As for whether the halving will cause a new "mine disaster"? Actually, it depends on the definition of "mine disaster". Mining itself is a process of continuously eliminating backward production capacity-an industry is destined to iteratively update if it wants to develop. Pan Zhibiao pointed out:

For old machines, it must be shut down, not enough electricity. In the new process machine, the revenue will be reduced, but it will not be cut in half. It is likely that the electricity bill will be cut in half or more.

Some bloggers in the community pointed out : If the output of bitcoin is halved and the price of the currency does not rise or fall, the high-cost miners will shut down. According to the current situation, all kinds of magic changes S9 will be eliminated first. After S9 was eliminated, the computing power of the entire network dropped, and the electricity cost of 0.38 yuan / kWh was probably calculated. The shutdown coin price of the new machine such as S17 / M30 will be further reduced to below 2500 yuan (corresponding to the halved currency price of 5000 Knife). Bitmain ’s latest policy is to buy miners to send options, which is to start bottoming out at around 5,000 yuan (RMB 35,000), and this is why. Therefore, in some bad situations, there may be some problems in the mine, but with tools such as option futures, in fact, large-scale mining difficulties are difficult to occur. So miners are happy to buy the latest version of the mining machine, because that is their most powerful weapon to eliminate people.

2 There is always a market for miners, and miners always have faith. But in today's ups and downs of the market, the miners are also alone in tears. Facing the upcoming halving event, only faith is not enough. For the miners, the most important thing is to do good risk control. Pan Zhibiao suggested that Through hedging, options, etc., in order to prevent the assumption that the currency price does not rise after halving, some people have problems with the capital chain, which is unavoidable.

The bell of the new year has sounded, and the mining circle is about to usher in an important exam. Miners, mines, and mining machine manufacturers are all actively preparing to take the exam. Now no one knows what the final result will be, and the only thing that can be done is to be faithful and do your best to prepare for 100 points.

For a detailed review of this issue of AMA: https://www.chainnode.com/ama/401673