Exclusive interview with Antminer Fan Xiaojun at the 2020 Digital Mining Summit of Wabi.com: There is no difference between early and late entry

On June 1, 2020 , Mining.com, Bitmain, Antminer, AntPool, BTC.COM, and BitDeer jointly held the Digital Mining Summit in Chengdu. Fan Xiaojun, the head of sales for Antminer in Asia Pacific, gave a speech as the main guest. After the speech, reporters from Mars Finance, BoChain Finance, Babbitt, Liandede, Interstellar Vision and other media conducted a joint interview with Mr. Fan. The following is the transcript of the interview:

Q1 . How is the sales of mining machines before and after this Bitcoin halving? How is it different from previous halvings?

Fan Xiaojun: In terms of sales, this time the halving is better than the last time. Taking S19 as an example, the September goods have been sold out and the October goods will start selling soon.

As for this halving, I think the first reason is still based on everyone's view on the halving market, because after the last halving, the price of the currency rose slowly, and after rising for a long time, there was another surge, so everyone is still looking forward to the price of the currency, and the desire to buy mining machines is also relatively strong. The second point is based on our product itself. In the 19 era, the cost performance is relatively good. From the perspective of product price, it can be calculated that our payback period is far more than the pricing of competitors. Customers still hope to buy products with higher cost performance. Some customers will consider J/T/Hash when purchasing products, and are more concerned about the power consumption of a single T, because in theory, machines with low power consumption do not have to worry about the risk of shutdown. The J/T/Hash of the product itself is relatively low, which means that the power consumption is relatively low. The proportion of electricity costs is also a very important point in the mining process. In addition to most of the cost of purchasing machines, the largest expenditure is electricity costs. Therefore, the cost of electricity costs is a very critical factor. Our products are more energy-saving and many customers are willing to buy them. The last point is based on everyone's judgment of the future. Now the entire product focuses on cost-effectiveness. If J/T/Hash can be increased by 20 or 10, it is possible, but the possibility will be relatively small and the proportion of the increase will not be too large.

Q2 . Mr. Fan has previously stated that the production capacity of the mining machine industry in 2020 is very limited. So what impact will the limited production capacity have on the price of mining machines and even the price of coins?

Fan Xiaojun: In fact, in terms of the price of coins, my personal opinion is that mining may not have much impact on the price of coins. It is not that the price of coins will soar just because there are too many miners or the mining cost is high. I don’t think there is much logic in this. So I think the price of coins may still be related to the market sentiment and amount of funds or the popularity of this industry.

The idea of ​​halving existed when Bitcoin was first designed. First, it is a deflationary design, and its output is getting smaller and smaller. Then, a larger base of people need to enter this industry to increase the price of the currency.

Our production capacity for the entire 2020 has been determined long ago, because we use a 7-nanometer production line, which is very tight. It is not only used by Bitmain, but also by other companies such as Huawei and Apple. The amount of chips allocated to our industry is relatively small. If the price of the currency rises, this production capacity is far from enough. At this time, the machine capacity is limited, which will inevitably lead to an increase in machine prices.

Q3 . Currently, some high-quality resources (mining machines, mining farms, computing power, etc.) are concentrated in the hands of some leading institutions. Do you think it is too late for ordinary retail investors or new institutions to enter the market now?

Fan Xiaojun: I personally think that it doesn’t matter whether you enter the market early or late. Our industry still has advantages over traditional industries. Now more and more people are optimistic about this industry because they think that the risk of this industry is relatively low and the profit is high. However, compared with traditional industries, the risk is a little higher. In fact, it is what we have always said that investment and return are proportional.