In a bull market, should we enter the mining market?

Did you make money by doing nothing?

Mining China Tour Event Site

After the magical 2020, the crypto world in 2021 continues to be magical. At the beginning of the year, Bitcoin surged toward its peak amidst the volatility, breaking through the $60,000 mark in March. Ethereum also had an impressive performance, breaking through $1,800 at one point, a 700% increase over the same period last year.

Many people lamented that if they had stored some coins at a low point and sold them now, they would have made a lot of money! However, "It's rare to get such an epic bargain. Apart from the bargain hunters, miners may be one of the most low-key groups making money this year."

On the afternoon of March 19, at the eighth stop (Beijing stop) of the "Sparks Spreading Across the Country·Mining Tour in China" hosted by Lieyun Finance and co-organized by GSR, Canaan, F2Pool, Diancun Technology, Binance Mining Pool, and 100P Computing Power Club, the bigwigs from the mining industry shared with everyone the wealth stories of bull market investors and miners who made money without doing anything, based on their own observations and feelings. They also briefly introduced the current status of each company and looked forward to the future development of the entire industry.

Mining China Tour Event Site

In a warm atmosphere, A Kun, partner of Lieyun Finance, briefly introduced the basic situation of the China Mining Tour, and hoped that Lieyun Finance would be able to work with everyone to promote the development of the blockchain industry in the future. Blockchain will continue to move forward in the Year of the Ox!

Song Zhengxin, head of GSR Asia Pacific, told us through a set of data that the payback period of mining machines is greatly shortened. He pointed out that the payback period for miners who recently purchased machines is about 10 months, which is much shorter than the 18-24 months in previous years. The hedging plan can guarantee a payback period of 10 months, and after the payback period, higher risks can be taken. He also believes that the cost of electricity is increasing, and risk hedging has become more important.

Although there are many stories of people making money easily in the bull market, Wu Di, the business director of Binance Pool, also pointed out that miners face three major pain points: mining farms (operation difference of 20% per month), mining pools (income difference of 10%), and finance (loss/profit). Binance Pool hopes to solve miners' problems through financial and technological means, increase miners' income, and bring the dividends of mining to ordinary users.

Yao Xianjun, vice president of overseas sales at Canaan, believes that if chips cannot be turned into ready-to-use products, the value of computing power cannot be realized. "Canaan has established a mature product team to find the fit between chips and scenarios and product carriers, so that our computing power can truly serve the market."

Faced with the current situation of rising coin prices and higher investment costs, F2Pool CMO Qingqing gave her own opinion through comparative analysis. She believes that investing in mining machines and mining farms is still the best choice at this stage. "Since the lowest point of Bitcoin price in 2020, it has skyrocketed nearly 16 times, while since the lowest point of Bitcoin's total network computing power in 2020, it has only increased by 195%. Chips are scarce and production capacity is in short supply. The futures sales of mining machines from the three major manufacturers have reached 2022." But she also emphasized that if you enter the market at a high level, you need to pay attention to hedging in advance.

At the roundtable forum with the theme of "A Bird's Eye View of the Global Computing Power", Wang Xuejing, editor-in-chief of Lieyun Finance, Yao Xianjun, vice president of overseas sales of Canaan, Wu Di, business director of Binance Mining Pool, Anjo, BD head of GSR Asia Pacific, and Mou Hongzhen, Beijing Sales Director of RRMine, had a wonderful and informative discussion.

Mining China Tour Event Site (Round Table Session)

Regarding the currently popular mining finance, Wang Xuejing pointed out that the innovation of digital finance has brought new ideas to miners, and exploring the organic combination of financial instruments and mining to expand profits has become the outlet for mining in the new era.

Anjo, GSR Asia Pacific BD Director, said that as a miner, GSR is very optimistic about the Bitcoin mining industry. GSR has two major identities in the mining circle, one is a miner and the other is a financial service provider. Anjo also mentioned that the rule of survival in the mining circle is "to master the computing power and never get off the train, and then make good cash flow reserves."

Wu Di said that mining machines are the core production factors. It is a good time to enter the market at any time. Even if you hedge at 9,000, you can still get an annualized return of 40-50%, which is far higher than the income of traditional industries. Find a suitable place to buy mining machines, and then find a suitable mine and a reliable mining pool, and you will definitely make money.

Talking about the impact of the arrival of the flood season on computing power and mining difficulty, Yao Xianjun believes that neither the computing power of the entire network nor the difficulty of mining will change significantly due to the arrival of the flood season. Instead, the wafer supply situation in the semiconductor industry, that is, the output of mainstream mining machine manufacturers, will have a more direct impact.

Mou Hongzhen pointed out that at this stage, the entire industry hopes to solve the two problems of "better compliance paths and stronger risk control measures". Therefore, in the future, the cloud computing industry will develop in a more compliant, professional and industrialized direction.

It was raining and cold in Beijing on March 19, but it did not stop everyone's enthusiasm for learning. The scene was very lively. Lieyun Finance hopes to provide more communication opportunities for industry practitioners and enthusiasts in the future, and jointly promote the healthy development of the industry.

This event was hosted by Lieyun Finance and co-hosted by GSR, Canaan, F2Pool, Diancun Technology, Binance Mining Pool, and 100P Computing Power Club. In addition to receiving special support from partners such as VeryHash, RRmine, and Inbit, it also received strong support from many media partners.

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