As the halving approaches, new and old mining machines are being replaced. How can the mining industry break through? ——《Wabi.com Celebrity Awards》

Host: Mr. Pan has extensive experience in the industry. I would like to ask Mr. Pan to take stock of some well-known "black swan events" that have occurred in the currency or mining circles?

Pan Yu: The black swan event that impressed me the most was the hacking of Binance users’ accounts in March 2018. At that time, a large number of users found that the digital currencies in their accounts were maliciously exchanged. Many users found that the various tokens and digital currencies held in their Binance accounts were traded into BTC in real-time currency-to-currency transactions at the market price. Because a large number of tokens were sold at the market price, most currencies began to fall, and retail investors in the market who were unaware of the truth also joined the panic selling. The hacker had already posted "short orders for digital currencies and tokens" on various exchanges around the world. He turned around and left the market through a decentralized attack that was a diversion. This sounds like a plot in a movie, but it is a nightmare that many people in the currency circle have actually experienced.

Moderator: What impact has the current situation had on enterprises? How do you deal with it?

Pan Yu: Relatively speaking, there is still a certain impact on the data center site. People and materials cannot enter, and logistics is not smooth. The news we received on the 12th was that some logistics and express delivery companies such as Deppon have resumed work one after another. Our response to the sites in Sichuan and Yunnan is relatively good. Since we purchase sufficient supplies and materials every year during the Spring Festival, the Inner Mongolia site is a cooperative unit and is not so well prepared. The overseas sites have not been affected at present. Since this year's supercomputing equipment is new equipment with high computing power, the preparation of spare parts is not so sufficient, especially the power supply of the Antminer 17 series is not available at all, and the official maintenance points have not been opened yet. Fortunately, the quality of the 17 series is still good. I hope that BITMAIN can open the power supply solution as soon as possible so that we, the power supply manufacturers, can keep up with the pace of the times.

The catering industry is still waiting for notification from relevant departments. As a traditional industry, the impact is relatively widespread, mainly in terms of capital flow, personnel management, and food supply. After the epidemic, a part of the catering industry will transform and provide online services. We are also exploring new models during this period, and we will strengthen our confidence and work hard.

Moderator: How long do you think this halving will last? Can you also estimate the peak price of the following coins?

Pan Yu: The experiences of the past few years are still fresh in my memory. The second halving of Bitcoin took place in July 2016 when we were in Chengdu. On the day of the halving, some of our industry members drank in a pub to celebrate. This is the third halving of Bitcoin. This year's halving is more difficult to judge than in the past. First of all, more and more coins of various types have appeared, resulting in different flows of funds, more and more institutions participating, and more and more derivative services. I personally think that this halving will have certain investment risks. Don't have too high expectations. There may be surprises. The peak of 11888 is the direction I can see at present. I hope to reach an index of 22888.

Host: This halving coincides with the iteration of old and new mining machines. The first-generation S9 will also enter the end of its life cycle. What arrangements have you made at this time when opportunities and challenges coexist?

Pan Yu: Some of our current S9 machines have been sealed in the warehouse and some have been sold. We are also thinking about this matter. A friend in our community was discussing this matter a few days ago. Due to multiple factors such as the epidemic, computing power, and supply from manufacturers, we decided to dig in a Fengshui period.

Host: Many people speculate that due to many factors such as the postponement of production by major manufacturers, insufficient spot inventory, rising logistics costs and the halving market, the price of mining machines will usher in a round of increases. I would like to ask if the bosses have adjusted their corporate strategies and product sales strategies?

Pan Yu: Price growth is determined by market demand. Based on a comprehensive evaluation of demand in the last quarter of 2019, the price of the machine will not increase too much. If the market continues to be around 10,000, the price of the machine will not increase. At present, the customer group that purchases servers has increased with the price of the machine and the professional requirements. The demand for individual users to purchase machines is declining. It is mainly institutional procurement, and then hosted in a professional data center to resell computing power through the platform. At present, the demand for individual users to purchase second-hand machines is still very high, and the turnover rate of second-hand machines is still considerable. At the same time, our business direction this year is mainly focused on derivatives, based on computing power and trading businesses, so that miners and investors can not only get coins but also ensure that they will not lose money and save more coins. At present, there are endless cloud computing power platforms. In order to protect customers' investment risks, we cooperate with multiple platforms to select the best computing power suppliers to ensure user benefits.

Host: Mr. Pan, I see that Baichuan Chain Service has mining pool and cloud computing business. After the halving, mining income has been halved, and mining pool income has also been halved. What do you think about the impact of halving on the mining pool business? The mining pool business seems to be very simple. Will there be any changes in the mining pool business in the future? In addition, many cloud computing products came out in 2019. Why?

Pan Yu: The halving will not have much impact on the mining pool business. Our mining pool business is mainly a niche VIP service, which is mainly provided to computing power cloud and VIP customers. The halving has little impact on our mining pool. We mainly provide more comprehensive services to customers, so we launched our own mining pool, which is what everyone calls the sub-pool business. We are like an early rural supply and marketing cooperative. If you move into Baichuan Mining Village, you only need to provide us with a wallet address and we will take care of the rest.

The increase in cloud computing product platforms is an inevitability of industry development. This is a stage of the industry. I started doing IDC business in 2006, and I think it is very similar to this industry. At that time, we were selling IBM Dell Inspur servers and providing computer room hosting services for corporate users. It was not until the emergence of some cloud computing products such as Alibaba Cloud in 2009 that some small enterprises and individual teams began to choose these cloud computing services. Cloud computing itself is a channel for users to own digital currency simply and conveniently, eliminating many complicated processes. The large number of computing power platforms also leads to more choices for users, and risks also follow. Choose a computing power platform with good reputation and credibility. The best hashnest computing power nest has been providing online leasing services since 2013 and was later acquired by Bitmain. It currently has 400,000 registered users.