Jiang Zhuoer places an order worth tens of millions for Bitmain S19. Are you still mining in this bear market?

"Mining in a bear market and cryptocurrency trading in a bull market." The price of Bitcoin has fluctuated dramatically recently. Are miners still persisting?

According to Jiang Zhuoer, founder of Litecoin Mining Pool, he has already ordered the latest S19 mining machine from Bitmain worth tens of millions of yuan, which is expected to be delivered in late May. He believes that as the global epidemic is brought under control and Bitcoin is halved, the price of the currency will rebound in a few months.

On the afternoon of February 27, Bitmain announced the S19 mining machine equipped with the latest 7nm chip. The S19 has a single-machine computing power of up to 110TH/s and an energy efficiency ratio of 29.5J/TH±5%, making it the most energy-efficient Bitcoin mining machine in the world.

In early December, Shenma released the latest mining machine M30S equipped with Samsung 8nm chip, with power consumption ratio of 38 J/T and total computing power of 88T. In early January, Innosilicon announced that it will soon launch a new generation of Bitcoin mining machine T4+75T, with a computing power of 75T H/s, energy efficiency ratio of 44J/T, an expected service life of 3 years, and a repair rate of less than 2%.

Although the price of coins has fluctuated sharply recently and dozens of mining machines have reached the shutdown price, the computing power of the entire network has declined relatively slowly, indicating that most miners have not shut down or are even mining at a loss because they believe that the price of Bitcoin will rise in the future.

Currently, the mining machine with the highest net profit is Bitmain S19 Pro, with a daily profit of 35.64 yuan, followed by Ant S19, Shenma M30S, Ant S17+, Shenma M31S+, Shenma M20S+, etc.

However, some mining machine dealers told Wu Blockchain that there are signs of a plunge in the price of mining machines. The price of Shenma M20S can drop from 8,200 to 7,300 per unit overnight. The price of the former second-hand main model has dropped from 400 yuan to 120 yuan per unit, and it is basically being sold as scrap metal.

The decline in mining machine prices also hides opportunities. When Bitcoin plummeted to $3,000 in early 2019, many mining farms shut down, and some basic second-hand mining machines such as Ant S9 were almost sold as scrap metal. At that time, some people in the cryptocurrency circle bought tens of thousands of mining machines at extremely low prices. A few months later, the price of the currency quickly rebounded, and they resold the mining machines and immediately made dozens of times the profit.

But the current situation is also different. Due to the halving of Bitcoin, mining revenue will be halved directly after May. But at the same time, May is the beginning of the golden flood season, and the electricity cost can be as low as 0.1 yuan to 0.16 yuan, which is 1/3 of thermal power. Huge negative and positive factors exist at the same time. In addition, there is the black swan factor of the epidemic. Although according to the time period for China to control the epidemic, it is expected that the global epidemic should have passed its peak in May and the economic situation will improve.

"Mining in a bear market, speculating in coins in a bull market" is an old saying in the coin circle. This is because in a bear market, the price of mining machines drops, computing power decreases, profits increase, mining farms are surplus, and electricity costs are low. In addition, financial products for miners are gradually enriched, such as lending, hedging, options, cloud mining, etc., which can help miners better turn over funds and resist risks. If you really believe in the value of Bitcoin, then mining and hoarding coins in a bear market is still a stable choice.