Golden Observation | Halving "Sequelae": The mining industry accelerates the reshuffle

 At 03:23 on May 12, Bitcoin officially completed the reward halving.

This is the third halving since the birth of Bitcoin. After the halving, the reward of each block will become 6.25BTC.

For the mining industry, the luck of this halving is that the current currency price is not too low, and there is cheap hydropower to continue life, but in the long run, the halving has greatly strengthened the long-term and heavy investment attributes of mining. Shenyu, the founder of F2Pool, asserted that this halving may push the mining industry to reshuffle.

How exactly is it shuffled? The data two days after the halving seems to be showing the answer.

Canadian-listed mining company Hut 8 Mining released a report stating that in the three months ended March 31, 2020, the company mined a total of 1,116 bitcoins, a decrease of 54% from 2,405 bitcoins in the same period last year. The company blamed the decline on "an increase in network difficulty that negatively impacted the company's production." Hut8 emphasized that the recent third Bitcoin halving will present major challenges for miners. Acting Chief Executive Jimmy Vaiopoulos said on an earnings call that the company may be forced to close some operations. Additionally, as of the end of the first quarter, Hut 8 held approximately 3,000 BTC at current market prices, worth approximately $26.8 million.

Jinse Finance Market Report | BTC is rising again, and bulls above 10,000 USDT are cautious: According to Huobi market, BTC rushed to 10,000 USDT yesterday afternoon, reaching a maximum of 10,150.15 USDT, then quickly pulled back, and fell below 10,000 USDT, and continued to organize around 9,900 USDT this morning. Pull up again, and re-up to 10000USDT, the local price is around 10030USDT. The daily chart formed an ascending channel, closing up for 8 consecutive days and the bulls were strong. As of 10:00, the specific performance of the mainstream coins on the Huobi platform is as follows. [2020/7/27]

Meanwhile, U.S.-listed mining company Riot Blockchain released its financial report for the first quarter of 2020. Riot highlighted a 68% increase in revenue compared to the first quarter of 2019, from $1.4 million to $2.4 million. However, Riot has accumulated a deficit of more than $221 million, and the company relies on equity and debt financing for most of its business. The company expects to continue to incur operating losses in the near term, noting that losses could increase as legal and administrative costs and acquisition-related expenses continue to mount. However, the mining company is pinning its hopes on the arrival of 2,000 next-generation mining rigs, which it believes will double its operational hash rate.

Golden Relativity | Founder of China Wanwang: The influence of the blockchain in the future will not be less than the emergence of the Internet: In this issue of Golden Relativity: Treasurer Investigation Bureau, how to view the development of the blockchain industry compared with the Internet industry Status and future? Zhang Xiangdong, the founder of China HiNet, said: Blockchain and products such as digital assets and smart contracts based on blockchain technology and concepts may bring huge changes to human society. Its influence in the future will be no less than the emergence of the Internet. Just as the Internet was questioned a lot during its development period, and the Internet bubble appeared and burst, the gap between people's expectations and reality for the blockchain has also caused great disappointment today. In the development process of the blockchain industry, there must be many speculators who use information asymmetry to cut leeks, which also creates a bad impression of the public on the overall blockchain industry. But anything that has transformative features that benefit human society always proves its worth in the end. There are many misunderstandings in the current industry and public perception of this industry. [2019/4/11]

In December last year, Riot Blockchain purchased 4,000 ant mining machines S17pro from Bitmain for about $6.3 million. Although the deployment was completed at the end of February this year, affected by the epidemic, Riot Blockchain sold most of its S17 mining machines in April. Moved to Coinmint's facility in New York. Recently, Riot purchased another 1,000 Antminer S19s and 1,040 S19 Pros, hoping to double its computing power.

Jinse Finance live report, partner of DFJ Innovation Dragon Fund, blockchain technology simplifies business: Jinse Finance live report, in the new finance 100 people theme forum, Wang Yuehua, partner of DFJ Innovation Dragon Fund, said that blockchain The chain endows commercial projects with a system and tools for decentralized self-organizing management, and endows tokens for circulation and incentive mechanisms within the ecology, which simplifies business. [2018/4/27]

Shao Jianliang, General Manager of Canaan Technology Blockchain, said that the halving has caused a large number of high-energy mining shutdowns to occur in the last two halvings, and this halving will be no exception. High-performance new machines will eliminate high-energy mining machines Old machines are an inevitable trend in the development of Bitcoin mining. Bear the brunt of the miners. After the block reward is halved, for those miners who have no comparative advantage, the survival situation will become very difficult, and there is a high probability that they will be eliminated in the future; secondly, the halving has not slowed down the pace of institutional layout. Overseas institutions such as Canada continue to set up mining funds and build mines. With the continuous layout of institutions, the degree of specialization and the head effect of the mining industry will become more obvious, and the pace of market clearing will be further accelerated. Those whose comparative advantages are not enough Groups such as mines and miners who are obviously and not highly specialized will face greater competitive pressure.

However, despite the halving of miner rewards after the Bitcoin halving and the occurrence of mining shutdowns, the health of the Bitcoin network is close to its peak value. The latest report from Glassnode indicates that the GNI has dropped from 76 points to 74 points since last week. But the key measure of "network health," which combines network growth and network activity, has risen six points from 88 to 94.

As of press time, the computing power of the entire Bitcoin network is 122.96 EH/s, and the average computing power in the last 7 days is 121.31 EH/s.

Tags：

FTX