Stock markets in many countries have experienced circuit breakers, the cryptocurrency market is in a slump, will miners usher in new life?

Will 2020 be the year of the financial crisis that swept the world in 2008? So far, March 12 has become the darkest moment in the global financial market, with the Dow Jones Industrial Average plummeting 10%, the largest single-day drop in 33 years. Panic sentiment has continued to escalate, and the 11-year bull market in the US stock market has come to an end.

【Original by Shilian Finance】

The epidemic is still raging, and the measures and strategies taken by many countries to deal with the epidemic have made the financial market increasingly silent. The sell-off has intensified, and global stock markets have staged a series of circuit breakers.

According to incomplete statistics, in addition to the U.S. stock market, "circuit breakers" occurred in the stock markets of eight countries, including the Brazilian stock market, the Canadian stock market, the Thai stock market, the Philippine stock market, the Pakistani stock market, the Korean stock market, the Indonesian stock market and the Mexican stock market; European stocks, including German, Paris, London and other European stocks, collectively suffered heavy losses at the close of trading; New York oil prices and international gold prices also fell one after another.

Obviously, the sluggish stock market has caused the "cryptocurrency" market to suffer repeated setbacks. In addition, 2020 is the year when Bitcoin will usher in its third halving cycle. Under such circumstances, it seems that only the mining circle is currently the most anticipated and promising industry?

The ups and downs of cryptocurrencies have always been a hundred times more crazy than the stock market. The ups and downs every second are like a pool of gold in front of gold diggers, tempting them to take risks. Miners want to harvest virtual currencies through hard mining, but they are stagnant due to the high costs of electricity and mining machines; they want to learn from big Vs to trade stocks and currencies to earn the difference, but they can't bear the thrill of riding a roller coaster.

The second situation is a matter of personal psychological quality, not an objective factor, and others cannot provide help to solve it. As for the first situation, a recent news report from Xinhua News Agency has brought new vitality to the mining industry.

According to the latest statistics from the State Grid Sichuan Electric Power Company: In 2019, the amount of "abandoned hydropower" in the peak-shaving of the Sichuan power grid dropped to the lowest level since 2014, at 9.2 billion kWh, a decrease of 3 billion kWh from the previous year, a year-on-year decrease of 24.6%. This shows that my country's largest hydropower province has maintained a downward trend in "abandoned hydropower" for three consecutive years.

In addition, Sichuan has exceeded 100 billion kWh for six consecutive years. As of the end of November 2019, its hydropower installed capacity reached 78.39 million kilowatts, accounting for about 80% of the province's total installed capacity, ranking first in the country in terms of hydropower installed capacity and power generation.

Undoubtedly, this news is extremely encouraging for the current situation. Suddenly, it rekindled the miners' hope of survival.

According to relevant statistics, there are currently about 90 types of mining machines capable of mining Bitcoin, including 22 brands including Ant, Avalon, Shenma, Yibit, and Xindong.

Since the end of December last year, Shenma has released the latest mining machine M30S equipped with Samsung 8nm chip, with a power consumption ratio of 38 J/T;

In the same month, Bitmain's 5nm test chip based on TSMC was successfully returned. Experts said that this should be the world's first successfully tested 5nm chip;

In early January of this year, Innosilicon also officially announced the release of its upcoming new generation Bitcoin mining machine T4+75T, with an energy efficiency ratio of 44J/T, an expected service life of 3 years, and a return rate of less than 2%.

Last month, Bitmain also released two new Antminers, the S19 Pro and S19. The new S19 Pro has a computing power of 110 TH/s and an energy efficiency ratio of 29.5 J/TH±5%, while the S19 has a computing power of 95 TH/s and an energy efficiency ratio of 34.5 J/TH±5%.

In addition, its relevant person in charge stated that the launch of the new Antminer will further meet the diverse mining needs of global users and provide customers with a better mining experience.

Whether it is the lack or high cost of electricity or the iterative update of mining machines, miners seem to have a chance to breathe in the current overall economic slowdown. In fact, there is still a dilemma that they have to face, that is, the overall profitability of the mining industry may be fundamentally reduced.

Relevant officials said that as the halving approaches, many miners have been gradually replacing old mining machines and purchasing new and more powerful mining machine models, such as Antminer S7 and S9.

However, the global epidemic has forced major mining machine companies to postpone their original mining machine upgrade plans, which has led to a slow increase in mining difficulty.

In addition to the slow iteration of new mining equipment, the epidemic has also affected some miners in a more direct way. Most mining farms have been forcibly closed by local governments at the beginning of the Spring Festival, and such incidents have intensified as the epidemic has become more serious. The most typical incident is what Jiang Zhuoer, the founder of the Litecoin Mining Pool, revealed on February 4 that one of his mines in the suburbs of Xinjiang was forcibly closed by the police and was not allowed to resume work.

In response to this situation, some industry insiders analyzed that the slow increase in mining difficulty is good news for existing miners, which means they may get higher returns from mining investments.

Mining is indeed a complex business, and any different variables may directly affect the final result. Can it become a chance for miners to make profits again? For miners, it may be worth a try!

This article is original to Shilian Finance, author: Suancaiyu, unauthorized reproduction is prohibited