A full review of the 2nd episode of "Coin Mining News": In the year of POW explosion, big mining coins VS small mining coins, did you follow the right ones?

At 8 pm on February 26, the second episode of "Mining Coins" was themed " Big Mining Coins vs. Small Mining Coins in the Year of POW Explosion". Did you follow the right one? The AMA event was successfully held. This episode's guest lineup includes: Ant Pool co-founder: Tian Xin, Shanghai Waiyi Network Technology Co., Ltd. co-founder: Li Peicai, CITEX Exchange CEO: William, HashPool founder: Pan Shi, media observer: Golden Finance Haikai.

The following is a full review:

Zhang Yuan

Hello, fellow miners and coin friends, I am Zhang Yuan, editor-in-chief of CoinWalker. Welcome to CoinWalker again. The theme of this issue is: PoW explosion year, big mining coins vs. small mining coins, are you following the right ones? First, please give a brief introduction of yourself and the companies you are in charge of.

Tian Xin

Thank you very much for the invitation. Hello everyone, I am Tian Xin, co-founder of Ant Pool. I founded Ant Pool with Xu Lingchao in 2014. Ant Pool is the second mining pool in China. It mainly serves the mining field of the "mining circle" and provides mining services to miners. It has been seven years since then, and it is also the seventh year since I joined the blockchain industry. Time flies. In a blink of an eye, I went from 900 RMB in 2014 to 70,000+ RMB now. Many old people get off the bus, but many new people get on the bus. Let's explore the future of blockchain together.

Li Peicai

Hello everyone, I am Li Peicai, co-founder of Shanghai Waiyi. Waiyi’s main business is to provide one-stop mining services. If you have any questions about mining, you can contact us at any time and we will definitely give you a professional answer.

William

Hello everyone, I am William, CEO of CITEX. First of all, I would like to thank Wabi.com for giving CITEX this opportunity to share and discuss with so many industry leaders. I hope to have more cooperation with Wabi.com in the future, and I wish Wabi.com will do better and better!

CITEX is a new exchange launched in October 2018. Our main business direction is the POW mining coin exchange, and we are known as the world's first POW exchange. So far, we have listed nearly 80 mining coins, which is the exchange with the most complete mining coins; users are distributed in more than 80 countries, and it is also the exchange with the most active miners. This year we will continue to cultivate the POW track and provide more financial derivatives such as contracts, options and more tools to our users.

Pan Shi

Thank you very much for the invitation from the organizer. Hello everyone, I am Pan Shi, the founder of Hashpool.

Hashpool is the world's leading comprehensive digital currency mining pool, with customers in more than 20 countries around the world. We are committed to providing miners with the most timely and stable mining services for new currencies. We currently support more than ten popular mining coins including FCH, KDA, CKB, NXS, etc. The computing power of many currencies ranks in the top three in the world, and the user's measured income has reached the leading level of the entire network. I personally entered the cryptocurrency industry in 2013, and have been engaged in technical research and development work on several major platforms. I have also personally experienced several bull-bear cycles in the industry. I am very honored to still be able to stay on the car and continue to delve into this industry. We look forward to making more contributions to the global blockchain industry.

Zhang Yuan

Thank you all guests. Let’s get straight to the point. It is said that this year is a big year for PoW mining coins. We know that according to market value, mining coins are divided into large mining coins (BTC, BCH, BSV, ETC, etc.) and small mining coins (CKB, KDA, AXE, IMG, MOG, etc.). The first question today is for Mr. Tian.

As the leading mining pool supporting PoW mining coins, AntPool should focus its resource allocation on large mining coins. Faced with the situation that many large mining coins have been halved this year, what strategic deployments has AntPool made to ensure its own and miners' profits?

Tian Xin

Large mining coins generally have certain advantages. Their user groups and mining income are generally relatively stable. Even if there is a big market, there will generally not be much turbulence. For example, the mainstream large mining coins are: BTC, ETH, BCH, etc. Antpool now supports ten large mining coins and 12 small mining coins, a total of 22 mining coins, providing miners with a diverse mining experience. From 2014 to now, we have provided mainstream currency mining for seven years, and we have put a lot of effort into large mining coins. From 2018 to 2019, we experienced the moment when S9 had to shut down, so we did research on mainstream coins with commonalities. For example, BTC, BCH, etc. are all SHA256 algorithms. Based on the commonality of the SHA256 algorithm, we have developed a "machine gun pool" that has a certain impact on traditional mining pools.

Many of you may have heard of the term "machine gun pool". When you hear the word "machine gun", you can think of the Gatling gun with blue light. So what exactly is a machine gun pool? Today I will explain to you in detail what a machine gun pool is.

Let me talk about the concept first:

The machine gun pool refers to a strategy that improves user benefits by intelligently dispatching computing power to the best-yielding currency for different currencies with the same algorithm. When users use the machine gun pool function, the backend system will intelligently match computing power to different currencies based on real-time benefits to maximize benefits. Currently, only the SHA256 algorithm is supported, such as the conversion between BTC/BCH/BSV currencies.

This is the concept of the machine gun pool. To put it simply, your S9 or S17 could only mine one of BTC, BCH, or BSV before. Now, if you use the machine gun pool, you can mine whichever of these three currencies has the highest yield, dynamically.

At this time, Xiao Ming will say, I can mine all three without using a machine gun pool. I just need to set up three accounts to mine three different coins. Yes, you can do this, but your income is not maximized. It is very likely that after you mine, you will find that you can't earn as much as mining all BTC.

Okay, now I want to talk about what user pain points the machine gun pool solves.

1. For example, if you want to switch from BTC to BCH, you need to change the mining address of the mining machine for BTC to the mining address of BCH before you can mine BCH. After going through the step of changing the mining address, your mining machine will have to restart once. At this time, your mining time will be shortened, and the restart of your mining machine may cause damage to the computing board. Old miners know that if the mining machine is running, try not to touch it, so that it will continue to run and be very stable. If you always operate it, restart, disconnect from the network, power off, etc., if it is an old mining machine, it is easier to damage the machine. So you can solve this problem by using the machine gun pool. We have solved the problem of "which coin to mine" from the mining pool end. This problem is solved lightly from the mining pool end. You don't have to restart, don't worry about the mining machine being damaged, the mining pool end directly helps you switch.

Focus: Reduce damage to mining machines and reduce mining address switching.

2. What do miners care about most? The most important point is naturally the income. For example, BCH and BSV have both soared several times recently. There is no doubt that after the increase, the income from mining BCH and BSV is higher than BTC, so what should you do? Do you mine or not? If you mine, you have to configure the mining address. After mining BCH and BSV for a day, the income has dropped. You have to configure the mining address and switch back to BTC. Can you step on the high point of mining coins every time? Your mining machine will not be damaged. More importantly, is your calculation accurate for each wave? Will it happen that when you switch to the past, the increase time has passed and it has begun to fall, but you are still mining a falling coin, and finally find that you lose money for a day, so you might as well just mine BTC. So the machine gun pool helps you solve this problem. Ant Mining Pool Machine Gun Pool adopts intelligent scheduling, which determines the mining income every few minutes, and directly mines the most profitable chain. In the end, you can settle with BTC or the original currency. The steps of manual calculation are omitted, which is neither accurate nor real-time. AntPool's intelligent scheduling system uses the average index of the top ten exchanges in the entire network as a reference, and calculates the mining income of several currencies in just a few minutes to maximize your profits.

Key point: Maximize profits and don’t miss any wave of dividends.

3. What everyone is most worried about is that the price of the currency soars today and the mining income is high, but it plummets tomorrow. Will I lose money on mining, which is not as good as the income from BTC mining? Ant Pool has also thought about this for everyone, so we will launch a guaranteed bottom event in early March. Users who newly join the Ant Pool will enjoy the bottom line of income, that is, from the start of the event, we will guarantee that your income in the machine gun pool will not be lower than that of mining BTC coins only for 30 days. If the average is lower than the BTC mining income, then we will compensate the difference tenfold, and we will exempt you from the mining fee for one year. The event will last until the halving to protect the income of miners. Using the Ant Pool Machine Gun Pool can ensure your income and not miss every wave of dividends. Choose www.antpool.com for mining.

Zhang Yuan

The second question is for Mr. Li. Mr. Li has dominated the Shanghai mining circle for many years, owning 180,000 mining machines and 200,000 kilowatts of load (from 2019 data). It can be said that every move is a vane for mining friends to invest. May I ask which subordinates Mr. Li has in the large mining coin business and small mining coin business this year? In this year's market, are you more optimistic about the growth of large mining coins or the momentum of small mining coins?

Li Peicai

First, let me introduce to you the main logic of our investment in mining machines. The most important thing for us to consider is three points

1: The price of the mining machine itself should be cheap, preferably close to the production cost, or even lower than the production cost

2: The output of the machine should increase nonlinearly with the increase in the price of the currency, and the higher the increase ratio, the better.

3: The more difficult it is to produce a replacement model, the better; and the slower the estimated time of its release, the better.

Based on the above logic, we mainly deployed Bitcoin, Litecoin, and ETH as the major mining coins this year. Among them, Litecoin is the focus.

We are more cautious about Bitcoin this year. The impact of halving on mining output is still relatively large, so it does not meet the second requirement. If the price of the currency does not rise by more than double, it cannot completely offset the impact of halving.

As for Litecoin, there is no impact of halving, and the machines are also very cheap, meeting all the above conditions. The only drawback is that the machines are difficult to buy. As for ETH, because there is still uncertainty about the conversion of POW to POS, we have only deployed some high-memory Nvidia mining machines.

For small mining coins, we have purchased a small number of FPGA machines. Now most of the small currencies, such as ckb and kda, are mined using FPGAs. Compared with graphics cards, FPGAs have lower power consumption.

In terms of the market, I think the big mining coins still have greater certainty. It is also difficult for the small mining coin market to obtain excess returns. Compared with the past, the information is now more transparent. Once a high-yield small mining coin comes out, a lot of graphics card computing power and FPGA computing power will be cut over, and then there will be no excess returns immediately.

Zhang Yuan

The next question is for William. CITEX has been focusing on small mining coins since 2019, and this year it has made efforts in the halving PoW project. I believe there must be theoretical support behind these decisions. Can William share the economic model of PoW mining coins and why CITEX is optimistic about small mining coins?

William

The characteristic of the PoW mining coin economic model is that the primary market (issuance market) is entirely derived from mining. Miners pursue profits, which will make the mining cost close to the current coin price, that is, the coin cost fluctuates with the price at each moment. This is different from 1CO project parties and investors holding a large number of low-cost coins. The distribution of mining coins is more gradient and more dispersed.

In addition, from the perspective of the founding team’s interests, many PoW projects use a percentage of each block reward (water withdrawal) as expenses and rewards for the founding team and developers. This also avoids the risk of the founding team holding a large amount of chips in the early stage and cashing out and leaving to a certain extent.

The team's interests are gradually realized along with the market value and the price of the currency, and such an economic model is relatively healthy. In short, if the project fails, the founding team will have worked in vain.

Of course, the economic model of mining coins is also evolving, moving towards a more stable and easier way to spread the currency. For example, some PoW mining coins will launch the Masternode Hosting function, which was first innovated by DASH, that is, staking a part of the currency, renting a VPS, forming a master node, and providing services to the network on the consensus layer. At the same time, a part of the reward for each block will be allocated to the master node. This locks up a part of the circulating chips, which is also very beneficial to stabilizing the currency price. C network provides users with a simple staking function, which simplifies complex operations and realizes quick staking.

The masternode provides services to the network in the areas of stabilizing the network, preventing double spending, or anonymity, and obtains rewards, which is a healthy cycle for the entire token system. This year, many projects will take the PoW route, and many project parties have chosen not to do ICO, but use the fair release mechanism of PoW to build projects.

Zhang Yuan

Mr. Pan, HashPool first came into everyone's attention through the CKB project. HashPool currently ranks second in the computing power of the entire CKB network. Later, when the KDA project was launched, Hashpool won the first place again. Mr. Pan, does this mean that HashPool is more optimistic about the growth and future of small mining coins?

Pan Shi

Small mining coins can refer to currencies that have been online for a short time, have a low market value, have relatively low attention, and have great appreciation potential.

Countless small mining coins continue to emerge. In this environment, after competition and game-playing among many small mining coins, a group of them will complete the transformation from small mining coins to mainstream mining coins.

Regardless of whether it is a small mining coin or a mainstream mining coin, they are all PoW coins. Miners generally do not mine a small mining coin for a long time. They usually go to the one with the highest return. However, the high-quality mining services available for small mining coins are not as abundant as those for large mining coins, and the response speed of new coins online is not as timely. For example, we started the CKB project at a very early stage. After evaluation, we acted quickly and accurately, successfully obtained the first batch of CKB miners, and completed the total computing power position in this coin. The same is true for KDA.

For HashPool, we are not against small mining coins, but in the early stage of each platform, a clear positioning is needed, so that it can quickly stand out in the fierce competition, which is the so-called differentiated competition. As for the growth and future of small mining coins, more can only be verified by time. Judging from the current user feedback and the overall development speed of HashPool, there is no problem in this direction.

Zhang Yuan

Small mining coins are often more difficult to build an ecosystem than large mining coins. Mr. Li, could you give some advice to miners who have already invested in small mining coins on how to reduce the risk of investing in small mining coins?

Li Peicai

The risk of small mining coins is indeed relatively high. Although many small mining coins can create ultra-high returns of dozens of times, many of them have fallen by more than 90% from their highs.

To reduce risk, the first measure is to control your position and not put money you cannot afford to lose. In addition, you should invest in coins that you understand, that are innovative, and that have application scenarios. Don't be blinded by the soaring coin prices and chase high prices.

When using mining machines for small mining coins, you must pay attention to the risk of a sudden increase in computing power, because the basic computing power of many small mining coins is very small. Once the computing power increases dramatically, the profits will be very ugly.

Zhang Yuan

William, I saw a piece of news a few days ago saying that the annualized return of C network's halving mining coin node staking service can be as high as 86.73%. Is this the unique charm of small mining coins or the credit of C network's product design? Can you tell us systematically about C network's strategic planning here?

William

Many friends learned about C Network’s pledge products through this picture:

This is the Masternode Hosting staking that I mentioned earlier. These projects are all POW projects and support the Masternode Hosting function.

The income here is allocated on the PoW project chain, and the income is allocated by calculating the number of Masternodes in the entire network. However, due to the very complicated operation, it is difficult for ordinary users to get started. Therefore, C Network designed this product as a recommended staking method. Users only need to simply enter some staking parameters, and our engineers will manually configure the server in the background to make it more convenient for users to participate in staking. C Network is always thinking about providing users with more convenient and fast services.

C Network's strategic plan for this year

This year's development direction mainly focuses on two aspects:

Further work on PoW and strengthen financial derivatives

We have launched grid trading tools and 3x ETF products.

The option system is also under development and will be launched in early March. As we all know, the benefits of call options are unlimited and the leverage can reach several thousand times. However, we must pay attention to controlling positions and risks.

Leverage and contract trading will be launched in March. These two months are when we launch products intensively. I hope everyone can pay more attention to C network.

In addition, we will restart IEO, select high-quality projects, and further empower the platform currency CTT.

Zhang Yuan

Mr. Pan, will the next project launched by HashPool still be a small mining coin project? Can it be understood that the next project launched by HashPool is also a growth point that you are optimistic about this year?

Pan Shi

The projects that Hashpool will launch next will still be mainly small mining coins. We will select small mining coins with good potential for users in advance, establish an efficient and transparent mining service platform, lower the threshold for mass mining, and seize the first opportunity of new coin dividends.

Here is a spoiler for HashPool. The next project that will be launched soon is Hns. Miners who want to mine can pay attention to HashPool’s currency release announcement. The rates and services will definitely satisfy everyone.

Zhang Yuan

The last question is for today's media observer Haidai. Please take over.

kelp

Dear guests, please tell us which coin you are most optimistic about this year. Is it the best time to get on board?

Li Peicai

My suggestion is to put the main position in mainstream coins BTC ETH BCH. For small coins, I think you can buy a small amount of VDS. Although it is controversial, this coin is indeed a bit innovative. But you must control your position and only put a small part.

William: MOG TRB NYZO, you can take a look at these

Pan Shi

He Lie allocates positions. Both large and small mining coins should be allocated. Small mining coins CKB and FCH are good.

Free Q&A session

Netizens

@hashpool I am a graphics card miner and I want to mine HNS recently. What is the fee after you go online?

Mr. Pan

Hashpool has always been operated with low fees, and HNS will still have a 1% fee

Netizens

How long will it take for HNS to be online?

Mr. Pan

It is expected to be online next week. Welcome all graphics card and FPGA miners to mine in hashpool

Netizens

@William王In addition to IEO, what other strategies do you have to empower CTT this year?

William

The next IEO needs to change its strategy, which has been discussed internally. Secondly, the income from derivatives will be considered to be empowered to the platform currency. In the first quarter, option trading, leveraged trading and contract trading will also be launched. In addition, we will also cooperate more with the big names in the mining circle, follow up on the needs of miners, design financial derivatives, and give the miner group more choices for configuration.

Zhang Yuan

Today's AMA ends here. Is it that big mining coins are guaranteed to make money regardless of drought or flood, or that small mining coins have a better future? After today's discussion, I believe everyone has the answer in their hearts. Thank you to all the guests and netizens for participating, and I hope that the sincere sharing of the guests today can become the starting point for everyone to achieve financial freedom. See you in the next issue of "Mining Coins Simulcast"!

We would like to thank our media friends including Golden Finance, Lieyun Finance, Liandede, Star World, Deepchain Finance, Babbitt, Mine Vision, Bitang International, Changqing Finance, Pika Finance, Bitao, Evangelism Finance, Bitcoin Home, Milin Finance, Moker Headlines, Chain World, Lianxiang Finance, FN.COM, Miyou Finance, Bipu, Qun TV, Shilian Finance, Bolian Finance, Niubiquan, Bibi NEWS, and Ostrich Blockchain for their strong support for this event.