Wang Chong of Cow Hash Power attended the Q&A session on "Halving Risks and Opportunities in Mining Industry"

Wang Chong of Cow Hash Power attended the Q&A session on "Halving Risks and Opportunities in Mining Industry"



Wang Chong

A serial Internet entrepreneur, the Internet companies he founded have received over RMB 100 million in investment from VCs, listed companies, government-guided funds, and Mr. Li Lin, CEO of Huobi.com;
He is also an early participant in the blockchain, and has been active in the currency, chain, and mining circles. He is now focused on the mining industry. He is currently the executive chairman of the WBA Mining Development Promotion Association , and participated in the establishment of the cloud mining platform - Cow Computing Power in 2019. Currently, he has built a total of 7 mines through self-operation or equity investment, with a total load of 493,000.


At 20:00 on the evening of March 5, 2020, Mr. Wang Chong, founder of Niu Hash Power, participated as an invited guest in the second issue of the BB Roundtable Countdown Series: "Halving Mining Dangers and Opportunities" hosted by BB News and supported by Golden Finance, ChainDD, Carbon Chain Value, Mars Finance, CoinVoice, Chain News, PANews, Planet Daily, Distinction, Vernacular Blockchain, Deepchain Finance, Ostrich Blockchain, Coin Express, Huoxun Finance, Mining Vision, Elephant Finance, Addiction, DAPPX, Caiyun Bit, and Bochain Finance. Also participating were Wang Li, co-founder of PayPal Finance, and Wang Shenglin, sales director of Xindong Technology. The following content is an excerpt of Mr. Wang Chong's wonderful sharing content in this roundtable meeting.

News :


What challenges and crises does the mining industry face under the halving situation? Is a mining accident likely to happen? For example, there are many uncertainties in the halving market, so many miners plan to buy mining machines after the halving. If the price of the currency continues to fall, it will be difficult to recover the costs of a large amount of funds for mining farm construction and leveraged investment in purchasing mining machines (more than hundreds of millions of US dollars). Assuming the price of the currency falls, the market panics, a stampede occurs, and the price of the currency falls below $5,000, all old mining machines except the new mining machines will face shutdown (and some of them will be shut down without recovering their costs). Please give your details, guests.

Wang Chong :

The so-called "mining accidents" only affect miners who have relatively insufficient risk resistance.


I personally think that it is possible that miners will have a period of suffering after the halving, but the possibility of a mining accident is still relatively small, because first of all we have to define what a mining accident is. A mining accident is when most people or companies in the entire industry cannot survive. But in fact, as far as I know, many old miners and professional institutional miners have completed the iteration and upgrade of old and new machines. Even if they still hold old mining machines with more than 80J/T, these old mining machines have basically paid back or made money, and many of them are even machines that are bought at the bottom.


For example, the 28,000 T9+, more than 22,000 L3+, and S9 I bought in March 2019 have all paid back many times. I remember the most exaggerated period in June and July, when T9+ paid back once a month. Logically speaking, the service life of these old mining machines should have expired, unless you bought a mining machine in early 2018, which may never pay back, the others have basically completed their service mission and are bound to exit the stage of history. It cannot be called a mining disaster just because the old mining machine that has been in service for two or three years is shut down.

As for the new mining machines that have not yet paid back the investment (30-60J/T), because a large number of old mining machines will be shut down, these mining machines will not be shut down within 1-2 years, but the payback period may become longer. However, if you look at it from an optimistic point of view, each halving will bring a sharp rise in the price of the currency. As long as you do not sell the mined coins immediately, but sell them at a high price, your payback period may become very short again.

Mining revenue has always been dynamic due to the fluctuations of four factors: machine price, currency price, electricity cost, and computing difficulty. Miners still need to learn to look at this matter dialectically and dynamically.
News :

What opportunities will the halving bring to the mining industry? Will the halving bring new growth to the mining industry?

Wang Chong :

The current Bitcoin mining machines in the market can be divided into three categories: the first category is the new mining machines with an energy efficiency ratio of 30-50W/T, such as the Antminer S17 series, Shenma M20 series, Xindong T3+, and the upcoming S19 series and M30 series. There are not many machines of this level. The second category is the machines with an energy efficiency ratio of 50-65W/T, represented by the Antminer T17, Xindong T3, and Shenma M21S. The third tier is the old mining machines with an energy efficiency ratio of more than 80W/T, such as the Antminer S9 and Xindong T2. If the BTC production is reduced and the price remains the same, then the old mining machines in the third tier will exit the stage of history. However, if the price of the currency rises sharply like the past two halvings, the mining machine market will usher in huge demand, and even the phenomenon of popular mining machines being hard to find will occur. As far as I know, the production capacity of several major mining machine companies in the first and second quarters of this year is not large. The third and fourth quarters are the peak seasons for the semiconductor industry, and the production capacity that can be allocated to the mining machine industry is also limited. The rising price of the currency, coupled with the low electricity price during the flood season, may make everyone's profit good.


This halving will definitely bring some new and old forces to the mining industry. For people or companies with stronger risk resistance, opportunities outweigh risks. This may be the last predictable transition from the old to the new in this industry, and a good opportunity for large-scale entry. There will be no hard impact of halving in the next four years, and it will be difficult to iteratively upgrade the energy efficiency of mining machines. We at Cow Hash Power value this opportunity very much.

News :

How do you, mining experts, deal with the halving? What plans do you have for the price of coins to rise or fall before and after the halving? How do you mitigate possible crises in the future? How do you seize possible opportunities in the future?

Wang Chong :


About 15 days after the BTC halving, the southwest region will usher in the flood season. After the price of the mining machine is determined, the electricity price is an important cost of mining income. Therefore, for mining, no matter whether the price of the currency rises or falls after the production reduction, actively deploying mining farms with low electricity prices is one of the best ways to alleviate possible crises . In addition, miners should be good at using financial means such as futures and options hedging to lock in profits and fight risks.


Of course, I am personally optimistic about the halving. I think the low point and the bottom are the best time to enter the market in a big way. If you are not so serious and anxious about short-term and immediate returns, I think the halving is a good opportunity to buy at the bottom and enter the market. Not only have we not reduced our investment in the mining industry because of the halving, but we have been increasing it. We are building new mines in Xinjiang and Sichuan, investigating new power resources and sites in Qinghai, Inner Mongolia and overseas, and these days we are negotiating an annual mining machine procurement agreement of no less than 300 million yuan with a leading mining machine company.
News :

Dear mining experts, can you please share your mining investment strategies with miners and ordinary investors? For example, how to hedge risks and how to get greater returns?

Wang Chong :

In fact, facing the increasing computing power of Bitcoin, the threshold of the entire mining industry is also getting higher, and mining has entered the era of large capital clusters. For small and scattered players who are inexperienced or have not yet entered the industry, directly purchasing mining machines and looking for mining farms to host them is already a laborious task. The newly emerging "cloud computing power" model of purchasing and hosting can well solve the pain points of small and medium-sized miners and small and scattered players in participating in mining. The threshold is high and there are many pitfalls. It is also an excellent way for large mine owners and mining machine owners to disperse risks and establish barriers.

Large mining farm owners build large-scale mining farms in areas with low electricity costs, which enable them to purchase machines at lower prices and electricity costs, and also have more professional technical teams and rich operating experience. These large mining farms provide services to users remotely through entrusted management or computing power leasing. On the one hand, this lowers the threshold for mining, allowing more small and medium-sized investors to enter the market, and on the other hand, it allows large mining farm owners to lock in profits in advance and reduce risks.

However, you must be cautious when choosing a cloud computing platform. Of the hundreds of cloud computing platforms that emerged in 2019, no more than 10%, or even no more than 5%, will survive in the end.

New :

In the near future, besides Bitcoin, what new opportunities are there in the mining industry, and what other currencies are worth mining?

Wang Chong :


2020 is the year of halving. In addition to BTC, mainstream coins such as BCH, BSV, and ETC will face halving one after another. Before the halving, the market sentiment brought by the halving consensus will drive the price of coins up. I suggest that you pay attention to BCH and BSV. As forks of BTC, they are backed by a certain amount of loyal computing power. The current computing power of BCH has always accounted for 4%-5% of the total computing power of BTC. I believe that after the halving, BCH and BSV, as the younger generation, will definitely compete fiercely with BTC for computing power, and their respective coin prices will determine who will win!

In addition, if you consider the risk of miners reducing production, you can also pay attention to some mainstream currencies that have already reduced production, such as Litecoin. I have been collecting Litecoin machines recently. There are also some small currencies such as C KB that you can consider trying, provided that you can tolerate the risks of plummeting coin prices and skyrocketing computing power. I generally do not play with small and new currencies.

News :

Please predict the price range of Bitcoin on the day of halving and after halving, and provide simple reasons.

Wang Chong :


I generally don’t predict the price of a currency, because the short-term price of a currency can only be predicted by God or by guessing. But I am still very optimistic about the long-term price of Bitcoin. If I must make a prediction, I think the price on the day of the halving should be between $9,000 and $11,000. One to two years after the halving, I am still optimistic that Bitcoin will at least reach $50,000.


Why am I optimistic about Bitcoin in the long term? Because I have experienced several bull and bear markets. In fact, when people talked about Bitcoin, they were talking about coins, and they were all issuing coins to make money through ICO. There were still very few people who really talked about blockchain, who really understood coins, and who could see the value of coins. But after the big drop in 2018, to 2019, and now, especially when the country positioned blockchain as a basic strategy and Facebook released Libra, it attracted the attention of the world, and the world began to pay attention to blockchain technology.


At the same time, this has also cultivated a large number of believers and audiences. When China's DCEP and Libra are issued, many people will know about digital currency, and Bitcoin is the ancestor of digital currency, which will attract many people to play with and buy Bitcoin. After such a group of people come in, it is easy to push up the price of the currency.

audience :

How to measure the strength and scale of cloud computing companies? Who are the top three in the industry?

Wang Chong :

Since I am working on a cloud computing platform, I will compare myself with other companies and sell my products here. But we did some thinking when we were working on the cloud computing platform last year. We classified all the cloud computing platforms on the market. Some are purely for matching transactions, some are for selling machines, some have mining farms, and some are preparing to dig deeper, with their own mining farms and mining machines, which are directly transferred to the wallet address and can be monitored.

You can think from these dimensions, and you don’t have to make a ranking. I think safety is the most important thing.




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