The first 421 Flood Festival: Bitcoin halving is imminent, is the multi-billion mining industry fully prepared?

The countdown is 20 days, which is the day when major events happen in the crypto field every four years. The halving of Bitcoin will have a significant impact on the entire crypto market and crypto industry. Everyone's eyes have been fixed here early on, waiting for the halving to take place.

This year's halving is a bit special. In addition to the pessimistic analysis and rational belief that there are both dangers and opportunities, many people have not noticed that this halving coincides with the flood season. With the protection of the flood season, the mining industry with a scale of more than 100 billion yuan is still confident about the future market. What's more special is that the first 421 Flood Festival held by the leading mining brand Bit Deer is also launched at this time...

01
BitDeer 421 Water Festival Mining's "Double 11" Carnival Feast

As early as April 16, we have seen intensive announcements from BitDeer and its strategic media. The slogan of the first 421 Flood Festival is: "Escort miners, decisive battle for flood! Eight major brand ecological alliance." During the event, BitDeer and the eight leading brands (Bitmain, Antminer, Ant Pool, Computing Power Guardian, BTC.COM, Ant Sentinel, Matrixport, and Litebit) formed an ecological alliance to give away lavish gifts . BitDeer provided super escort electricity packages, million-dollar red envelopes, tens of millions of vouchers, and lucky draws. Other major brands also brought sincere and generous discounts.

We noticed that this is the first BitDeer 421 Water Festival. In theory, it will be held every year in the future, just like the e-commerce "Double 11" shopping festival. So, what will the annual 421 Water Festival bring to miners and the industry?

1. Unprecedented protection for miners

Some senior miners told us that this is the largest promotional event jointly launched by a large number of leading brands in the mining industry in many years. It is unprecedented! The most direct reason is that when the flood season comes every year, miners usually choose to purchase and deploy in large quantities . The 421 Flood Festival brings various discount promotions that miners need most at this moment, just like the slogan of Double 11 in previous years: "If you miss it today, you have to wait another year!" Generally, the time node of the first Flood Festival is just before the halving of Bitcoin every four years.

2. A new sublimation of mining

Among the members of the 421 Flood Festival Ecological Alliance, the initiator BitDeer has rapidly risen to the top brand in the past two years and is recognized by the public as a dark horse in the mining industry. While becoming a benchmark for cloud mining in the industry, it has also brought new standards for products and services to the industry, improving the overall landscape of the cloud mining industry . The reduction in overall product thresholds and the improvement in service quality have served more crypto enthusiasts who were previously restricted by mining thresholds.

During this mining flood festival, BitDeer, as a large-scale platform connecting the upstream and downstream industries of the mining industry, not only brought discounts to miners, but also brought great benefits to the mining industry and major brands. In fact, each promotional activity itself has a two-way effect, which is a win-win situation for consumers and merchants. Merchants can not only make small profits but also increase brand exposure through activities. At the same time, the flood festival also invited big names from major brands to bring wonderful sharing to cheer up the industry. The future mining industry will become more mature and more worthy of the expectations of crypto enthusiasts with the active construction of these head brands.

3. Bitcoin halving protection

In fact, we have mentioned earlier that the timing of this flood festival is just right. It not only protects miners, but also protects the Bitcoin network. Every four years, the halving of Bitcoin will actually cause many people to worry that the mining rewards will be reduced after the halving, but the price of the currency will not rise sharply, resulting in a decrease in miners' profits and a sudden decrease in computing power, which will affect the security and stability of the Bitcoin main network. This time, Bitcoin will be halved from the current 12.5 to 6.25, and the output will become increasingly scarce, which may be a challenge for miners.

In fact, even if Bitcoin does not rise sharply, the arrival of the Flood Festival will bring about a forced price cut in the ultra-low-priced hydropower and thermal power markets. The electricity price of the entire market will be reduced , and many old mining machines that were previously shut down will be restarted because of profits. Coupled with the addition of new models, the profits are also considerable, which offsets the factors that threaten the security and stability of the Bitcoin main network. Therefore, the mining army is also full of confidence, especially Bit Deer’s timely holding of the Flood Festival event, which has boosted the confidence of miners and increased computing power to escort Bitcoin halving!

02
Mining experts share highlights

Bitmain Chairman and CEO Jihan Wu:

"A heavyweight mysterious guest airborne live conference, in person to help with the flood! As an advocate and believer of computing power, he is low-key and mysterious, with extraordinary insight and keen business sense, and is well-known inside and outside the circle." Bitmain Chairman and CEO Jihan Wu is the mysterious guest mentioned in the preview of the 421 Flood Festival and kept everyone guessing.

At the 421 Fengshui Festival, Wu Jihan answered questions from the host via a remote connection:

Q1: Everyone wants to know how the current mining industry has changed compared to the white paper period. Can you briefly talk about your views on mining service companies such as BitDeer, Hash Guard, and Ant Sentinel, and the roles they play in the ecosystem? In your opinion, where are the future development opportunities for the mining ecosystem?

Jihan Wu: When I first translated the white paper, the entire mining industry was still in its early stages, and many mining equipment had not yet appeared. We now observe that the number of participants in the entire mining industry is decreasing, and it is becoming more and more concentrated. The scale of mining is also getting larger and larger. Since the birth of BitDeer in 2019, the mining industry has returned to the era of decentralization. More mining enthusiasts and more cryptocurrency enthusiasts can participate in the mining industry, and professional resources and professional capabilities can be shared with everyone through cloud services. This is the process of change in the mining ecosystem that I have seen. This is an evolution from a decentralized era to a highly professional and concentrated era. I believe it is also a very professional decentralized era.

Q2: This year everyone is very concerned about the halving issue. What do you think of the previous halving performance of BCH and Litecoin? The halving is about a month away. What is your prediction for the short-term and long-term price trend of Bitcoin after the halving? When do you think the bull market will appear and how much room for growth will there be?

Wu Jihan: There is a leading indicator for the Bitcoin halving this time, that is, BCH and Litecoin halved before Bitcoin, which is an important milestone for them. Now they have successfully passed this test. Everyone has been worried that Bitcoin's early halving will cause them to fall into a death spiral. Facts have proved that everyone's worries are unnecessary, and the entire network is running very well.

BCH's entire technology upgrade is in an orderly pace, and community developers are raising funds for ecological construction, and the enthusiasm continues to rise. Bitcoin will probably rise before the halving, just like in the past. There is no need to expect that this round of halving will start a booming bull market. Don't have such an optimistic expectation. In this process, both cryptocurrency professionals and ordinary investors should look at this industry from a long-term perspective and manage risks well.

Q3: The extreme decline in the market on March 12 caused many traders and digital asset management companies to go bankrupt. Risk control of asset security has become very important. To what extent do you think risk control can cope with this market? What do you think about the future development of the digital asset industry?

Wu Jihan: This decline is an extreme risk in the financial market, which has caused a huge impact on the economy. The risks it has caused in the financial market are also unprecedented. Because this is an event with too low a probability, many risk management models based on probability almost failed at that moment. Various cycles of liquidation and mutual trampling led to a cyclical decline, which was indeed very rapid. That round of decline itself should be the bottom of market output. The trading volume of almost all trading platforms in the entire market hit a historical high during that round of decline. Now the leverage level of the entire market is very low, and everyone is still in a cautious state. In the future, there is still ample room for the entire market to leverage and drive the bull market to rise further. The last 3.12 plunge should have fully released the risks.

In the future, the cryptocurrency asset management industry will increasingly move towards the general public, and the maturity of low-risk, low-return products, I believe, will be the key to the next step in expanding the cryptocurrency asset management industry by more than ten times.

Q4: We are about to usher in the flood season, which can be said to be a crucial annual gold-digging battle for miners. What impact do you think the flood season will have on miners and the entire industry? What machines do you expect the mines will mainly use during this flood season? How much computing power will the entire flood season bring and how will it help profits?

Wu Jihan: This time, the flood coincided with the Bitcoin halving. It should be a coincidence of Bitcoin itself. The halving is often in the middle of each year, which is often the beginning of the flood. I believe that the seasonality of the flood is a very important factor in the start of the Bitcoin halving bull market. The pressure of electricity prices will be greatly reduced with the arrival of the flood. The flood is definitely an important driving factor for the bull market. Chinese mining investors should especially seize the opportunity of the seasonal phenomenon of flood. Foreign infrastructure is definitely not as perfect as China's. China's infrastructure is very good. Seizing the opportunity of the flood to consolidate its efficiency and cost advantages in the mining process is a feasible and successful strategy for long-term investment in the cryptocurrency industry.

Q5: Everyone has raised questions about S19. As we all know, the flagship S19 was sold out in 2 minutes. From S9 to S19, why can Bitmain always lead in research and development? What share will it account for in the entire network in the future? How long can S19 be mined?

Jihan Wu: Bitmain's most brilliant mining machine is S9, which has occupied the market for more than two years with an absolute leading advantage. But later, the research and development gradually went astray. The fact that the S19 mining machine was launched so smoothly was related to my return last year. Our entire research and development returned to the right path, removing some of the very strange design ideas, focusing on customers again, and systematically redesigning and correcting the mining machine research and development. I believe that the market should feel the hope brought by Bitmain's own changes, so that the S19 will be sold out in two minutes. The quality of the newly launched mining machines, whether S19 or the T19 to be produced in the future, will be very good, and the reliability will be very high. Focusing on customers, leading the functional departments of the entire organization to work around the interests of customers, this is the key to our success in the past and the guarantee of our future success. Some of the twists and turns in our road are because we forgot about customers and fell into the trap of self-centeredness.

BitDeer CEO Meng Xiaoni: Gathering energy ecology and achieving win-win results

As the helmsman of BitDeer, he led the planning of the 21st Flood Festival, which brought great benefits to miners, mining industry, and Bitcoin mainnet. The general direction and many details were decided and supervised by him personally, which really brought a lot of surprises to everyone.

Meng Xiaoni, a leading brand operator in the mining industry who holds a large amount of accurate data in the industry, first shared with everyone the outlook for the mining industry and revealed three trends:

Trend 1 : As the market value of Bitcoin expands, the mining industry still has room for future profits;
Trend 2 : Traditional mining has gradually become an asset-heavy, high-threshold industry, shifting from extensive growth to professional and refined competition;
Trend 3 : The computing power trading model provided by cloud mining is on the rise, and it is particularly important to choose a compliant and strong platform.

Meng Xiaoni then mentioned the growth process of the BitDeer platform and the business philosophy behind it. The BitDeer platform achieved the top 1 position in the global cloud mining platform in just 6 months and has maintained its leading position for a long time. Behind the good results of Bitcoin Deer, there are "three persistences" concepts guiding the platform's products and services , namely: persistence in providing user-first product and service experience; persistence in improving competitiveness; and persistence in the 3W spirit of cooperation (3W refers to the win-win cooperation of customers WIN, partners WIN, and platform WIN).

Afterwards, Meng Xiaoni also recommended a flood layout strategy specifically for the special time node of "halving + flood": full-time miner investors can purchase relatively new models; asset allocation investors can participate in reliable cloud mining.

At the final high-energy moment , Meng Xiaoni officially announced the news of BitDeer’s Fengshui Package and Accelerated Return Package:

Finally, Xiaoni also told a story about the origin of the name of Bit Deer: The name of Bit Deer comes from the homonyms of the four words "Bit Xiaolu", which is intended to convey the value of blockchain, so that more ordinary users can understand and be willing to participate in the construction of this new world and jointly create more infinite possibilities.

Yu Kun, Regional Sales Director of Bitmain: With the coming of abundant water resources, how should we choose mining machines?

In 2020, Bitcoin will experience its third halving in history. Along with this halving, the flood season is coming. The two topics of halving and flood season have been hotly discussed in the industry. Yu Kun’s sharing will start from four aspects and will also involve these two topics:

First, why do we need mining?

Yu Kun believes that the cost of mining will be lower if Bitcoin is purchased directly. The emergence of joint mining, time-sharing leasing and other products also provides more options for ordinary investors and lowers the threshold for mining. Miners can hedge and lock in profits in advance by using some financial tools reasonably.

Second, the crises and challenges that may be brought about by halving

Yu Kun personally believes that the Bitcoin halving is bad news for miners, and many people will start to enter the market after the panic in the market subsides. The expectations for this halving have basically been released. The novelty brought by the Bitcoin halving has little impact on the short-term market of Bitcoin, and it is more of a long-term positive.

Third, what does abundant water mean to miners?

The arrival of abundant water will force thermal power plant owners to lower their hosting prices, which will lead to a reduction in electricity costs for the entire mining industry, and the miners' income will be improved to a certain extent. The reduction in Bitcoin selling pressure will also have a certain stimulating effect on the rise in the price of the currency.

Fourth, what kind of model should I choose for Fengshui?

1. For hydropower mine owners: We recommend that they pay more attention to the S9K type of machine. In addition to purchasing old second-hand models, we also have a small amount of spot inventory with quality assurance and guarantee, so there is no need to worry about after-sales.

2. Alternative plans for investment promotion: The demand for machines like S9 will gradually increase, and the machines will have room for appreciation in value in the future.

3. Ordinary hosting customers: T17+ and S17+ are suitable for ordinary hosting customers. This type of machine has a low price, a short payback period, and is almost at cost. The machine is less sensitive to electricity prices, and this advantage will gradually increase, bringing a lot of benefits to miners.

4. About S19 mining machine: In addition to inheriting the features of S9, S19 has also added many innovations and strong power. We have also prepared millions of coupons for this Xiaolu Fengshui Festival, which will be distributed on our official website at 6 pm every day starting from April 21.

BTC.com Mining Pool CEO Zhuang Zhong: Data and opinions on Bitcoin halving

1. People are no longer so excited about the halving process. This is a very smooth transition and everyone only needs to pay more attention to this period of the market.

2. After this halving, the annual inflation rate of Bitcoin will drop to 1.8%, which is a significant drop compared to the last halving. The overall impact of inflation will be relatively small.

3. After the halving, the proportion of transaction fees will increase. We expect it to be around 4%. Currently, all mining pools have basically included the transaction fees when users settle accounts. This has a relatively small impact at present.

4. After the halving, if the price of the currency remains at its current scale, the monthly output will reach the level of early 2019, which will definitely have a great impact on the market.

5. Looking back at the last halving process in 2016, the price started to fall before the halving, and there will be a bigger wave of decline after the halving, and then the bull market will start.

6. Since 2019, the growth scale of the computing power of the entire network machine has generally lagged behind the price. The computing power growth is generally very slow, but once the price drops to the cost price of shutting down the mining machine, there will be a very large fluctuation.

In July and May, the new generation of mining machines S19 will also be shipped after the halving. This is also a time point that investors need to pay attention to. You need to pay attention to such machines so that they can better help you maintain the stable operation of your business after the halving.

8. After the halving, old mining machines will face shutdown, but the impact on new machines will be less severe. It is expected that a large number of old machines will exit the market. Since the end of last year, many large miners have already started preparing for the purchase of S17 or even new mining machines.

9. We predict that the computing power of the entire network will drop by at least 15% after halving. If the current price is maintained, the computing power of the entire network will drop by 30% or even higher. The entire mining industry will be more inclined to scale and formalization. For retail investors, they can change their thinking and consider high-quality TOP cloud mining services. We also recommend BitDeer's new S9 package.

AntPool CEO Zhou Zhenbao: Is Bitcoin still digital gold?

First, Zhou Zhenbao briefly described the development history of gold, and then mentioned how gold became one of the best safe-haven tools in the eyes of investors.

Next, compare the four advantages of gold (large long-term returns, better liquidity, risk hedger, and consensus of all mankind) with Bitcoin. Bitcoin will perform better than gold in many aspects such as usage.

As for whether Bitcoin can fight risks, especially inflation risks, Zhou Zhenbao believes that we still need to see whether Bitcoin can become an independent cross-sovereign currency. Bitcoin is still far inferior to gold in many aspects and there is still a long way to go. We will usher in a lot of changes in the future. All we need for Bitcoin is just a little more time. I look forward to seeing Bitcoin help the next better human society in the next decade.

Finally, Zhou Zhenbao recommended the product of Ant Pool. It has been running stably for 2.53 months. No matter whether the electricity price rises or falls, no matter the computing power is large or small, we bring a great increase in revenue to friends on average every day. Ant Pool has also prepared some gifts and coupons for the Fengshui Festival, which can be seen on the official website of Ant Pool or the Xiaolu event page.

Wang Wenguang, head of Bitmain Mining Center: Views on mining and introduction of Bitmain Mining Center

Wang Guangwen mentioned in his sharing that Bitmain Mining Center is a one-stop business unit of Bitmain for hosting, operation, maintenance and repair of mining machines. They are the mine owners who are most familiar with mining machines. All models of Antminers have been hosted, operated and repaired, and a large amount of experience data has been accumulated. For mining, 2020 is a very special year and has historical significance for the mining industry. At this time, they are willing to launch our high-quality services to all Bitmain customers.

Later, Wang Guangwen talked about his personal views on the price of the currency . He believes that the price of the currency is now a normal fluctuation of the industry cycle, and its cyclical properties are becoming more and more obvious. If we compare it with the real estate industry, which has a very strong cyclical property, the lowest house price in each cycle will be 2% lower than the lowest price in the previous cycle, but the highest price will be 54% higher than the highest price in the previous cycle. In this situation, it is difficult to feel how to make decisions in this cycle. Will I buy the bottom halfway up the mountain? Will I sell at a low point? He believes that this is a manifestation of Bitcoin entering the industry cycle as a new industry. Its cyclical properties are very obvious. It may be that the fluctuations will be different during each cycle. The cyclical properties are very obvious. This is an important sign that an industry has entered maturity from youth, which is actually a good thing.

From the perspective of value investment, if an industry is mature and more suitable for value investment, mining is worth continuing. There is an old saying that you must believe in the future, the sun will rise as usual, it was like this in the past, and it will definitely be like this in the future.

Finally, he introduced the two sub-departments that they focus on serving their customers , one is the Supercomputing Center Research Institute, and the other is the Computing Power Guardian. He hopes that everyone will use Bitmain's standards, enjoy Bitmain's services, and mine and make money together during this year's halving process.

Liang Baoqing, head of Bitmain's Ant Sentinel: Ant Sentinel will be with you in the face of another flood season

Liang Baoqing shared four key points as follows:

First, the management challenges of Fengshui mining machines

During the flood season, there are problems such as the transfer of a large number of mining machines, large-scale operation management, and upgrades, which often take a week, two weeks, or even a month.

Then there are the viruses that everyone hates, which can cause huge damage and affect income.

Second, the introduction of ant sentinels

Ant Sentinel is a comprehensive operation platform for free mines in mainland China. It was previously a comprehensive operation platform for Bitmain. Ant Sentinel has been in existence for six years. Ant Sentinel itself is a product that has been successfully launched by Bitmain after being tested in its own mines. It has actually been running for six years and is actually solving problems. This is somewhat different from the products launched by some friendly companies on the market.

Third, Ant Sentinel’s products

It includes several major parts, including the main platform, the monitoring part, and a platform for real-time protection of computing power. The three products are aimed at efficient operation and maintenance monitoring, security protection, seamless integration of the industry ecosystem, and connectivity of multiple mining pools for ultra-large mining farms.

Finally, the holiday gift section

During the Fengshui Festival, we provide a full set of services and free gifts, including ten sets of software, including software authorization, installation and deployment, and technical support services.

Jiang Zhuoer, founder and CEO of BTC.top mining pool: We may have entered a rare mining period

Jiang Zhuoer mainly shared the following two views:

1. With the current high risk, it is a good choice to buy mining machines, especially the latest mining machines. Antminer is the best mining machine with the best power consumption. When a black swan occurs, you will be the beneficiary. This is the principle of anti-fragility. Cash flow is very important at present.

2. Buying S19 is inherently anti-fragile. When the price of the currency drops, the cost will be recovered slowly. Due to the epidemic, it is expected that S19 may be mined for a longer time, even five to six years. If you have S19, you may be able to enjoy low-cost mining of Bitcoin in one or even two bull market cycles. If you are interested, you can buy cloud mining S19 or joint mining S19. Both are possible.

Li Kuang, Head of Sales for Asia Pacific at Matrixport: About the halving

First, after the halving, the mining difficulty will be reduced by 25% or even more . From now until the moment the difficulty is reduced, the price of Bitcoin may not rise sharply. At the moment of halving, the Bitcoin computing power will drop sharply.

Second, after the halving, the price of Bitcoin will slowly rise , and of course the difficulty will also rise as the price rises.

Third, more and more small and medium-sized miners will try, learn and use financial tools to increase their mining profits.

Fourth, based on the above analysis and inference, now is the best time to deploy computing power, which means that mining is more cost-effective than hoarding coins. BitDeer computing power is divided based on real mining machines in real mines. Among many cloud mining, I highly recommend BitDeer.

Finally, he introduced Matrixport. Our company has rich industry resources and leading technical capabilities, and its vision is to build the next-generation digital asset financial services platform for customers.

03
summary

After watching the entire press conference, we will find that the first 421 Flood Festival of BitDeer is not just a promotional activity similar to the "Double 11" of e-commerce. In addition to receiving great discounts during the Flood Festival, miners can also learn from the sharing of several special guests on the scene about many senior views and suggestions of big names on halving, international situation, and crypto market. Compared with direct cash discounts, the improvement in cognition is also worth the money for many people. This year's Flood Festival press conference ended on the afternoon of April 21, and the promotion of BitDeer and major brands has officially begun. BitDeer 421 Flood Festival, look forward to seeing you next year!