Witness history! Bitcoin plunges sentient beings: mining circle under pressure, exchange shuffled

Author: Liu four red

Source: BBT Fintech Circle

Editor's Note: This article has been deleted without altering the author's original intention.

"From the beginning of dropping a Porsche to Mercedes-Benz and BMW, it is estimated that the next time will be Audi or direct Alto. The digital assets will rapidly depreciate from 8 to 5 digits, and it will be too expensive to witness history …" People in the circle talked to reporters of Beijing Commercial Daily. Bitcoin's many large price fluctuations in the past few days have brought a huge crisis to the entire currency industry. In addition to asset impairment, it is even more alarming that it will also face unemployment. The reporter from Beijing Business Daily learned that on the one hand, some small virtual token exchanges (hereinafter referred to as "exchanges") have lost customers due to the decline in transaction volume and no longer have any business to do; in addition, the upstream mining industry has also suffered a considerable impact Due to high costs and low currency prices, individual mines have been shut down and closed.


Mine shutdown and closure

"It has never been this difficult." Li Ming (a pseudonym) working in the mining industry sighed deeply after sending three expressions covering his face to the Beijing Business Daily reporter. Li Ming told reporters that he has been suffering from insomnia for several consecutive days, mainly due to the recent plummeting of virtual currencies such as bitcoin, which has caused everyone in the industry to endanger themselves. Recently, bitcoin prices have experienced extreme falls with multiple waterfalls. The most recent one was on March 16th, after a short and rapid rise in the price of Bitcoin, the price repeated several declines, from a peak of $ 5,824 on that day to $ 45,83, a half-day drop of 21.3%.

The avalanche of Bitcoin, coupled with the impact of the epidemic, has brought a strong sense of crisis to the upstream and downstream industries in the currency circle. Among them, the upstream mining industry, from mining machine manufacturers, distributors, miners, mines and even mining pools, faces a huge challenge in the entire mining industry chain. Mining machine manufacturers, distributors, mining pools, etc. are facing sudden business volume. Reduce the situation, and miners, mines are facing an unprecedented test of life and death.

"The currency price is cut, the most painful is our miners." Li Ming told a reporter from Beijing Business Daily that due to the increased difficulty of mining and the decrease in output, when the currency price "halved", many miners' mining income has become impossible. Coverage costs. Take bitcoin mining as an example. At present, the difficulty of bitcoin mining has greatly increased compared to the past, and the block production speed has also been reduced by 3 times or more. The halving of bitcoin output after two months will also greatly affect the miners' income. . However, despite the reduced benefits, costs remain high. Li Ming said that at present, even if the currency price is low, miners still need to sell coins to pay monthly utility bills or rents. If this continues for a long time, the mining circle will undergo a major reshuffle.

The relevant person in charge of the coin-printing mining pool also introduced that the mining profits of miners mainly produce virtual tokens, and the costs include the cost of mining machines, electricity, maintenance and other expenses. In simple terms, if the value of virtual tokens produced every day is greater than the operating cost, it will be profitable and can continue to be mined; however, if the price of the currency falls very badly and gradually falls below the cost line, it will choose to shut down to reduce cost consumption. He further pointed out that the impact of falling currency prices on mining tends to be delayed and predicts that if such a depressed currency price continues for another half a month, more than 25% of mining machines will be shut down in a large area.


Exchange business plummeted

Many people pointed out that the plunge of virtual currencies such as Bitcoin has mainly affected upstream mining circle enterprises. At present, some mines have been shut down and closed. In addition, in the currency exchange industry, due to the sharp decline in the price of coins, a large number of Business shrinkage also poses a greater threat to exchange business. Beijing Business Daily reporters have learned from various sources that the current business model of the exchange mainly relies on user transaction fees, listing fees, issuance of platform currency or contract transactions to obtain profits. In addition, some exchanges will also add some innovative business models such as "membership" or dollar rewards to attract user investment.

An employee of an exchange told the reporter of the Beijing Commercial Daily that due to the impact of the epidemic and the collapse of currency prices, many small exchanges are currently on the verge of bankruptcy, and they are even unable to pay their wages. On the one hand, the assets of the entire currency circle have shrunk dramatically, causing a huge impact on the cash flow and asset reserves of some exchanges; on the other hand, the transaction volume of some small exchanges has been shunted by large exchanges, and a large number of customers have been lost. do.

However, in addition to bankruptcy and retreat, there are also some exchanges that constantly come up with new tricks to attract user investment. According to the aforementioned practitioners, at present, there are some unknown exchanges in the market. By cooperating with the so-called "teachers" in the currency circle, the "teachers" are responsible for guiding the market and the exchanges operate the platform currency prices, thereby deceiving investors. Lead to losses.

Liu Feng, director of the Blockchain Technology and Application Research Center of the Institute of Artificial Intelligence and Change Management of Shanghai University of International Business and Economics, pointed out in an interview with a reporter from Beijing Business Daily that at present, the exchange industry is chaotic. On the one hand, it is mainly to be alert to individual exchanges. Or some public chain institutions are running away due to trading or redemption crisis; on the other hand, it is also necessary to prevent the exchange from attracting an investor to make a so-called “stud” for a bottom-sweep (could be understood as Buying a dip with all assets).


Consider a timely stop loss

"At present, whether it is engaged in the mining industry or the exchange, or the currency circle media and project parties, practitioners have begun to withdraw from the circle." Li Ming told the Beijing Business Daily reporter that from "Black Monday" to "Black Week" Judging from the current situation, the industry does not know when it will improve, and everyone's first consideration is how to stop losses in a timely manner. At the same time, Liu Feng also pointed out that in the context of the global economic downturn caused by many black swan events, the currency circle cannot stand alone. Under the crisis, the concept of cash is king has caused many large holders of virtual tokens to sell in large quantities. It has also caused panic in the market. In his opinion, such a downturn in the industry may continue for a long time. In response to the crisis of tight cash flow and shrinking assets, he suggested that on the one hand the relevant blockchain companies should do a good job of asset allocation and prepare for the cold winter of assets. On the one hand, practitioners should also be fully prepared for the cold in this crisis.

However, in response to the market chaos, he also made further suggestions and suggested that institutional supervision and publicity should be strengthened to protect the safety of funds and assets of retail investors.

It is worth noting that the virtual token speculation transaction is illegal investment in China. Many industry insiders unanimously stated that on the one hand, there is no clear legislative and policy positioning. Because there is no way to rely on it, many companies are playing with the ball; in addition, the public is difficult to understand the speech of some experts and technical speeches, which also makes it possible for fraud Multiply. Therefore, it is not recommended that ordinary consumers participate in such speculative activities where the risks are greater than the returns.