The blockchain circle never lacks hot spots. From DeFi, IPFS, Polkadot, to the recent OKEx withdrawal event, hot spots of all sizes are flooded. And they are just like “the first cup of milk tea in autumn”, which suddenly became popular, but they were replaced by other hot spots when many people did not understand what was going on. While hotspots are “competing” with each other, the “front wave” Bitcoin mining seems to be submerged here. Recently, a miner suddenly asked in the community: “Which mine should I put my 10,000 mining machines?” This seems to remind everyone that mining is still going on. With the arrival of the dry season, the migration of mining machines is or has been completed. Lieyun Finance interviewed industry veterans in order to understand the overall situation of the current mine.
The mine is still facing the status quo of insufficient hosting
After the bull market in 2017, a large number of mines have been built in the past three years, and the capacity of the mines has increased rapidly, resulting in a large number of redundant mines. Not only that, this year, friends of miners also encountered a lot of big things, such as the 3.12 plunge and Bitcoin halving. The sharp drop in currency prices caused many machines to shut down, and market confidence suffered a severe blow. The mining undercurrents surged before and after the Bitcoin halving, and the friends of miners were worried about the income halving. Miners are leaving the site, and retail entry is very few . Mines without machines have established the name of their factories and can only be vacant or transferred. Of course, some mine owners choose to use second-hand machines or obsolete models. Colleagues at Lieyun Finance and Economics also often receive some “harassment” news. For example, XX mining machine, the price is invincible, the real order is coming, and the order can be ordered with a 50% deposit in advance, and the manufacturer contract can be provided…
In the buyer’s market, dealers are in a difficult situation, and no matter how hard they shout, it is difficult to ship goods. The number of mining machine stalls in Huaqiangbei, the hottest mining machine trading place in the mining circle, is decreasing, and everyone is turning to Moments and WeChat to push messages to save physical store rents. The mining chain is intertwined, and there is no need for hosting without mining machine operation. During this year’s wet season, all major mines have increased their custody investment efforts, and some of the custody power prices have even dropped to less than 0.2 yuan. Under this condition, some mines are not operating ideally.
In the dry season, a large number of machines are transferred from hydropower mines to thermal power mines, but mines still face the status of insufficient hosting. For example, the shutdown of some mining machines will cause the mine sites to become idle.
Whether the mine will die on a large scale depends on the currency price
Li Peicai, vice chairman of the 100P computing power club and founder of Shanghai Dieyi, said that there are several trends in this year’s dry season: first, machines with more than 60 watts can only be shut down during the dry season ; second, the production capacity of new machines this year is not high and new The cost of the machine remains high; thirdly, in the main, new foreign miners are changing. There are a large share of new machines in Europe and the United States. At the same time, many large mines have been repaired , and mining has become a trend. Lao Peng, a mine owner in Sichuan, told Lieyun Finance that a lot of mines will die next year. In Lao Peng’s view, the closure of the mine was not caused by oversupply. He explained: “It is mainly based on three reasons: one is the expiration of the contract; the second is the high price of electricity; the third is that there is no abandonment of hydropower.” “After the UHV in Sichuan is turned on, the abandoned hydropower will be sold outside the province. There is no abandonment of water and electricity, and Sichuan is now in the process of eliminating the park. If the mine is directly supplied with electricity, there will be no electricity and will face the dilemma of being eliminated.” Old Peng further explained. Lao Peng also told Lieyun Finance and Economics: “The big mine farms are directing power supply, and other direct supply mines are selling off. Of course, those with low electricity prices, good relationships, and a good background in hydropower stations have not yet begun to move. Other high electricity prices are on sale outside.”
Gao Fei, director of the 100P computing power club and co-founder of Domi Technology, also holds a similar view. He told Lieyun Finance that the mining farm may die on a large scale, but it mainly depends on the currency price. If the currency price allows it, there will be no problem, otherwise there will be a large surplus. On the other hand, it depends on the power policy. In addition, he added: “ Old miners used to choose trusteeship and gradually built their own mines , but the number of miners that need trusteeship is decreasing because the capacity of new machines is limited and everyone’s desire to buy mining machines is not high.”
Low electricity prices are not the only factor in mine selection
As Gao Fei said, some large miners with the right conditions are currently building their own mines. Brother Hai, the miner, said that his own mining machine can be moved into the self-built mine during this dry season. According to Haige, his mine is located in Inner Mongolia, with a load of 80,000, which can accommodate about 40,000 to 50,000 mining machines. The specific investment in the mine depends on high-pressure conditions. The construction cost of his mine with a 10,000 load of about 2 million yuan is about 16 million yuan.
For Binge, who has no conditions to build his own mine, he has already solved the custody problem. “The low water is coming as scheduled, and the biggest change in the relatively abundant water is that the cost of electricity prices has increased.” Miner Bin Ge said. Brother Bin also told Lieyun Finance that he used two days to drive the mining machine from Sichuan to Inner Mongolia, and the electricity price cost rose from 0.23 yuan to 0.34 yuan. There is still a certain loss during transportation, although it is not as high as 20%, but it is quite high. Brother Bin has hundreds of machines in his hands, which are managed by many friends after buying them together. Some are similar to partnership mining. As for how to choose a mine, Binge said that there are many issues to consider. The relatively low price of electricity is not the only factor to consider. The most important thing is compliance and safety.
Zhang Ying, the co-founder of BitExpress, also said that in addition to compliance with regulations during the dry season, the other point is the continuity of historical power supply and whether the future power supply capacity can truly be guaranteed to 365 times 24 hours of uninterrupted power. The uninterrupted power supply actually allows everyone to get the benefits. It is the benefits that are actually put in the pocket, not the cheap 1 cent to cut off the power for 5 days. Obviously, the competition in the mines has already entered a white-hot stage.
As stated by Wu Hui, the R&D director of Yuner Technology, the global chip production capacity is limited, resulting in fewer machines in the world and more mines, which objectively leads to fierce competition among mines. In this case, the PK of mines is Due to comprehensive factors such as its own hardware, electricity prices, stability, quality standards, and intelligent operation and management services , a number of poorly prospective mines will inevitably be eliminated.
At the moment, the entire industry is moving towards formalization. If the mine cannot provide satisfactory service, it will put itself in a dangerous place.
