A year has passed, and the cryptocurrency industry has undergone tremendous changes. DeFi mining has become popular, the concept of NFT is in high demand, and mainstream investment institutions have entered the market. Is it time to say goodbye to "312"?

(Hashrate change trend chart, data source: Tokenview)

Analysts described it as the most famous Bitcoin panic stampede in history. It happened at the time when the global COVID-19 pandemic broke out. The U.S. stock market had four circuit breakers in two weeks. International crude oil prices fell to negative values ​​during the period. The market fell into panic and short sellers launched a massive attack.

When asked about his feelings during the 3.12 Incident last year, one netizen said, "I was eating at the time, but I didn't know what I was eating. My mind was completely blank."

Unexpectedly, just two weeks later, the Federal Reserve launched a wide-ranging, unlimited quantitative easing initiative, and Bitcoin began to gradually stabilize and recover, even setting new highs.

After 312, the price of Bitcoin continued to rise, and the computing power of the entire network rose to around 151 EH/S, greatly improving the mining yield rate. Mining machines were in short supply, and the hot sales of second-hand machines allowed some obsolete machines to return to market circulation. For example, the current price of S19 Pro is about three times the factory guide price.

In just one year, the price of Bitcoin has increased from US$3,700 to US$56,800 now. Its high rate of return has attracted more and more investors to join.

According to a recent report released by Goldman Sachs, Bitcoin's return rate in 2021 was as high as 67%, twice the return rate of the second-ranked energy industry, surpassing all major traditional asset classes.

Currently, 43 listed companies have publicly stated that they hold Bitcoin, accounting for 6.35% of the total Bitcoin supply.

Some listed companies such as Tesla and MicroStrategy directly purchase Bitcoin as an investment reserve; some companies such as 500.com enter the Bitcoin mining industry by directly acquiring mining pools or purchasing mining machines.

(Position display of some companies, data source: bybt.com)

Citi, the largest U.S. bank, said bitcoin’s global reach, traceability and potential for fast payments would make it “best positioned” to become the currency of choice for international trade if businesses and individuals could access planned central bank digital cash and so-called stablecoins through digital wallets.

In the new year, the world economy is still in a state of turmoil, the new crown epidemic has not been completely contained, the United States has just passed a $1.9 trillion new crown rescue bill amendment, and Federal Reserve Chairman Powell also recently made a "hands-off" statement: the Federal Reserve will not raise interest rates until the 2% inflation target is achieved and full employment is restored.

In the last week of February 2021, Bitcoin broke its adjustment low three times, falling by more than 26%. We cannot predict when the next "312" will come back, but adjusting our investment strategy may be our best preparation to say goodbye to "312".

The biggest lesson that the 312 crash last year gave to miners is to be cautious in using leverage in the market. Borrowing money to mine can indeed make money and earn coins, but this money must come from outside the market. Because of the black swan market like 312, even with a 1x leverage in the market, it can be wiped out completely.

According to TokenInsight's mining report for the first quarter of 2021, the current average payback period for Ethereum mining is 100.67 days, with an average annualized rate of return of 457.7%; the average payback period for Bitcoin mining is 148.75 days, with an average annualized rate of return of 307.75%.

Compared with futures contracts, mining is more like a "fixed deposit", which locks in costs at one time and obtains long-term benefits. Mining machine investment requires the lowest level of personal operation of investors, and effectively reduces investment risks in extremely turbulent market conditions.

Rolling Stone Miner will continue to focus on the POW mining field with the original intention of "leading users to earn market dividends with the lowest risk", and provide you with professional blockchain computing power services.