|
In May 2020, Bitcoin will experience its third halving, when the block reward will be reduced from the current 12.5 BTC to 6.25 BTC. Bitcoin is halved every four years, which is also an important event that attracts attention in the industry. Looking back at the past two halving experiences, Bitcoin has experienced an exciting bull market in the months before and after the halving. In view of this, the third halving in 2020 has attracted the attention of many investors. The third halving is coming. What impact will this halving have on the mining industry? Shenyu’s interview will tell you about this industry opportunity. This is the third halving in the history of Bitcoin. The first halving occurred in December 2012. The first halving was when Bitcoin was transitioning from the graphics card mining era, so the total computing power of Bitcoin was very low at that time. Many graphics card machines chose to shut down, which was the most dangerous time in the history of Bitcoin. The second halving was at the end of 2016, which was also at the end of a bear market or the beginning of a bull market. This year's halving may be similar to the time rhythm of 2016, and more similar to the process in 2012. Because this halving is a relatively significant mining machine change in the history of Bitcoin, and the halving coincides with it. The S9 mining machine, which was born in 2016, has a very large shipment volume. About 30E to 40E of computing power in the entire network is composed of this model and its derivative models. This year's halving is bound to eliminate and upgrade this generation of machines for the last time. This halving has a relatively large impact on miners and mining machines. If the price of the currency does not rise sharply after the halving, coupled with the impact of the epidemic, under the pessimistic assumption, about 40% of the current computing power of the entire network will be eliminated in 2020. In addition, the upgrade of 5G will generate huge demand for chips, which will inevitably lead to the restriction of the production capacity of upstream mining chips. This will lead to a shortage of chips and mining machines. This year will be a major reshuffle and a stage of life and death test for miners. Under the halving market, the ecological benefits of the entire mining area will be halved. The survival of the mining pool will face challenges. Some mining pools may be eliminated in the following process. At the same time, the mining pools must also find new growth curves for the second business. Mining is a game of cost and benefit. After the halving, the market is dynamic and will basically find a new balance period after a few months. In general, you need to choose the right opportunity to invest. Halving is a big test for mining pools, mining farms, and miners. It is both an opportunity and a challenge. Miners bear the brunt of the impact, and the upcoming halving means "unchanged electricity costs, halved income, and a significant drop in profits." Mining farms and miners also need to promptly introduce new mining machines (with low power consumption and high computing power) to cope with the challenge of halving Bitcoin output. The enrichment and application of mining financial derivatives (futures, options) can effectively hedge risks and stimulate a new round of mining opportunities under the halving. This year is mainly a test of the mining pool's stable profitability and management capabilities. It is also a test of the mining farm's stability, price advantage, and compliance. For miners, there are actually more choices. In short, challenges, crises and opportunities always coexist. Seize the opportunity of this halving. Bitcoin may still be in an upward cycle in the next few years. ( This article does not constitute any investment advice. The currency market is risky and investment should be cautious ) |
