Preface

As the 2020 New Year bells ring, Bitcoin and other mining coins have also entered the countdown for production cuts. Even in today's cold market, Bitcoin's halving has become the focus of daily attention for coin holders. Some people are looking forward to this upcoming blockchain feast, saying that the bull market will come with the halving. Others regard it as a waste, believing that the halving hotspot is just hype and has no actual profit logic.

01

OKEx Mining Pool

OKEx Mining Pool is: OKEx Mining Pool is the world's leading comprehensive mining pool. Relying on the world's leading digital asset trading platform OKEx, it realizes the integration of trading and mining, and supports PoW and PoS/PoS-like mechanisms.

In the PoW field, OKEx supports 12 major currencies including BTC, BSV, ETH, LTC, and supports hedging services up to 180 days. Currently, the BTC of the OKEx mining pool is 7600P, which has long been ranked among the top five in the world.

In the PoS/quasi-PoS field, OKEx Mining Pool has comprehensively deployed Staking mining business, continuously excavating high-quality projects, empowering high-quality projects on the basis of ensuring node security and efficient and stable operation of blockchain network, and deepening and prospering community ecology. OKEx Mining Pool currently supports 8 Staking currencies including DAI, EOS, ATOM, XTZ, and has become a node for more than 20 projects.

02

OKEx’s View on Halving

For OKEx mining pool, halving means that there is a risk of reducing the mining pool's income, but it also directly increases the computing power rapidly. Because miners are very eager to mine more Bitcoin before the halving. Judging from the Bitcoin K-line and computing power data in 2012 and 2016, the halving market every four years may be late, but it will never be absent. As a leader in the industry, OKEx mining pool invited many big names to share their views on this halving market, and how everyone can seize the opportunity and accumulate wealth in this halving market.

Moderator: Alina

OKEx Business VP, Mining Pool Manager, a veteran player in the industry with both talent and beauty

Today, OKEx Mining Pool invited 7 big names:

Li Kuang :

Started mining in 2012, joined Bitmain in 2013, responsible for marketing, and joined Mr. Han’s new company, Matrixport, in 2019

Zi Cen:

Currently he is the CMO of RenrenBit, mainly responsible for the market.
Our slogan at RenrenBit is to be the engine of the bull market. If you are short of money, come to us and we will help you store it. In the current bull market, we will never sell our coins, even if we sell ourselves.

Sun Zeyu:

An old investor in the cryptocurrency circle, he started playing with Bitcoin in 2013 and experienced the halving in 2016. At the end of 2016, he co-founded Kushen Wallet with Mr. Yuan Dawei, and in 2017, he founded Genesis Capital with Zhu Huaiyang, focusing on primary market investment in blockchain.

FRANK:

Founder of AlphaCoin Fund. AlphaCoin is a startup investing in the blockchain field. There are VC funds investing in equity. There are also hedge funds investing in tokens. We have a team in-house that is responsible for asset portfolio management. So we have allocations from project seed rounds to liquid assets like Bitcoin. At present, the company has a deep and wide layout in the blockchain field, from the upstream of the industry, mining pools and mining machine businesses, to public chains, side chains, protocol layers, Dapp applications, and traffic applications.

Aladdin:

Head of Aladdin Mining Research Institute, Aladdin Pow Labs is a vertical media and research institution focusing on digital mining and mining coins. It has the ability to operate the entire mining coin industry chain and has partnerships with large mining pools and mining machine companies. Aladdin Mining Research Institute has covered mining coins of different sizes, and on the basis of mining coin research and operation, it has expanded and strengthened the mining coin contract trading and mining machine computing power mall sections, covering FPGA, ASIC and IPFS, and working with partners to make mining more mainstream.

Wang Yan:

12-15 years of family mining experience. From 15 years to now, I have been responsible for operations in Inner Mongolia, Xinjiang and Sichuan

Quan Yaocheng:

Bai Yi@Archer A little book boy who strayed from the traditional financial industry into the mining industry

Interview transcript

Q1

Looking back at the past two Bitcoin halvings, and reviewing the 16-year halving?

Li Kuang :

I should be one of the few miners in the cryptocurrency circle who has experienced two halvings. Let me talk to you about my experience at that time.

The first halving was on November 28, 2012. The price of Bitcoin on the day of the halving was about 80 RMB. Half a year before the halving, Bitcoin was about 40-50 RMB. Before that, Bitcoin had experienced a long bear market and ushered in its first halving. At that time, there were not many people in the "currency circle" and there was not much discussion about the halving. In my impression, the halving was silent. Many players who were trapped by the bear market in 2011 did not hold on to their coins before and after the first halving and sold them.

About half a year after the first halving, which was in April 2013, a very interesting thing happened. Bitcoin rose to around 1,800. During this period, many old and new players came to exchange chips. Some cleared their positions, some increased their positions. Then the price plummeted to 400 yuan. At this time, I felt that domestic QQ groups and websites were extremely active. Someone even composed a song called "I Stand on the Top of 266 US Dollars". I was fortunate to save this poem and dedicate it to everyone.

I stand on the top of Bitcoin 266 (Author: lln Nanlaibeiwang)

Looking down the mountain with tears in my eyes

Look at the endless mining pools

Look at the spectacular operation of the mining machine

Watch the busy miners at the mining pool

Tired but hopeful smile

Look at the tortuous path that Bitcoin has already blazed

But the end points to the unknown darkness

I feel sad about its four years of keeping a low profile.

Soaring into the sky

How many people's eyes were amazed

How many people's expectations are carried

Recalling the overwhelming media publicity, both good and bad

We face the fact that genius is always lonely

But the price curve keeps going south

I stand on the top of Bitcoin 266

Look at the companions around you who share the same fate

They either laughed, scolded or cried

Although the infinite scenery is on the dangerous peak

But no one wants to stand guard here all the time.

See the price drop again and again

Watching the hard-earned money to support the family disappear

I stand on the top of Bitcoin 266

Look up at the sky and let out a final cry

When will you let me go home?

When will you let me go down the mountain?

I was one of the people who cleared their positions at that time, and I also laughed at those who increased their positions in the community.

Bitcoin began a new round of turbulence, with companies such as Bitmain and OKCoin brewing in this "surge followed by a crash", and then within just a few months, it rose to 7,000 yuan.

Then there was another slow bear market until the second halving in 2016. I believe many friends in the group have experienced it personally. Let me briefly review the timeline.

The halving occurred on July 10, 2016. On the day of the halving, the price of the currency was approximately RMB 4,500 . Four months before the halving, the price of the currency was RMB 2,800 .

It is not difficult to see that the market conditions of the first halving and the second halving are very similar, both of which saw an increase of about 70%. Moreover, each cycle saw a big bull market about a year after the halving, followed by another round of sharp correction.

Will history be surprisingly similar in the four months before the third round of halving and within a year after the halving?

Personally, I think it will be similar, but the increase may not be as high as the last two times.

1. Because 75% of Bitcoin has been mined, the amount of Bitcoin in the market is much larger than before;

2. In the past, you might have to buy Bitcoin first to buy any coin, and you had to sell any coin for Bitcoin. Bitcoin was almost the only trading pair. Emerging currencies such as ETH and stable currencies such as USDT have eaten up a lot of Bitcoin's market share.

The above is just my personal opinion. If you have different views, you are welcome to communicate.

Zi Cen :

I entered the market in 2013 and started buying Bitcoin. Strictly speaking, I have only experienced the halving in 2016.

Therefore, I can especially understand the feelings of many people now. Some time ago, the situation was basically that half of the people firmly believed that the bull market would definitely come after the halving, while the other half said that if everyone firmly believed in the bull market after the halving, then there would definitely be no bull market.

I want to say that I had the same idea when the halving happened in 2016. Without actually experiencing the halving, I would have doubted whether the halving could bring about a bull market, until I was stunned by the bull market. I doubted my life, I really doubted my life, and that feeling is unforgettable.

At the end of 2017, I was on a business trip in Shenzhen. It’s quite embarrassing to say, but I stood alone on the beach, at a loss, with tears streaming down my face. People who didn’t know me thought I was going to commit suicide by jumping into the sea.

My last experience was to get out of the 2015 bear market, crawl out of the pile of dead bodies, and still feel desperate. I doubted the prospect of halving while waiting for a desperate outcome. When the halving was approaching, there was a correction. Most people thought that halving was the end of it, and they looked for opportunities to sell and take profits. But what made people desperate was that they missed the opportunity to take profits, and the price broke through the previous high of 8,000.

When it broke 8,000, many people thought, this is the M-top of the annual line, it must fall, and they should take profits quickly. Unexpectedly, they missed the opportunity when they took profits, and the price went all the way to 18,000. 18,000 is the most interesting point for me, because from 2014 to 2016, there was a notorious "Wanba Cult", they firmly believed and advocated that Bitcoin would definitely rise to 18,000 every day. When Bitcoin was one or two thousand, other people thought that this group of people were crazy, and they had lost their minds because of speculation in Bitcoin.

The 18,000 cult, when it reached 18,000, really liquidated their positions collectively to take profits. Tragically, taking profits meant missing out, and Bitcoin continued to surge to 140,000.

After all this wave, my biggest feeling is that even in the eyes of the most die-hard Bitcoin fans, the craziest price targets they can imagine may be too conservative .

Don’t let history constrain your imagination. Just as it was difficult for a textile factory in the Industrial Revolution to imagine Google’s current valuation, it is only reasonable that the market value of Bitcoin cannot be accepted in the Internet era.

Bitcoin is still too cheap.

Q2

What impact will the halving have on mining pools, mining farms and the entire market?

Sun Zeyu :

Simply speaking, the halving will not have a big impact on mining pools . The existing mining pool structure is actually relatively fixed, and there will be normal equipment iterations, so the halving will not bring any special impact.

For mining farms, we need to know that the start of halving will not necessarily bring about a big market immediately.

The market remained stable for a period of time during the first two halvings.

The first halving was on November 28, 2012, when the total network computing power was 27.6T and the price was 12.27. After the halving, the value did not rise directly, but remained for a period of time. The price remained the same for more than a month, and the computing power was 80 days. It was not until February 16, 2013 that it broke through 30T, and then gradually increased.

The second market was on July 10, 2016, when the total network computing power was 1.64E and the price was 645.327. This value was maintained for 100 days before it began to rise slowly.

When the market price remains unchanged after the halving, the daily income will drop drastically, which will have a great impact on miners, and the impact on miners will indirectly affect the mining farms. We can look at another data, which is the income of miners. In the year before the production reduction in 2012, the income of miners was about 3.8Kusdt/T.

After the production cut, it went straight to 1.66, and it lasted until February 16, 80 days later, before it recovered. The second production cut took a little longer, and it took 10 months to recover to the profit level of the first half of the year. This is a test of the power consumption ratio of the mining machine.

The same is true for mines.

For the market, halving will provide a basic fermentation soil for the market, which will be catalyzed by the market. The halving in 2012 actually started six months before the halving: the price on May 28, 2012 was 5.113, and the price at the time of halving was 12.27, an increase of 139.99%. On April 9, 2013, it reached 195.39 US dollars, 15.92 times the halving price and 38.2 times the price six months before the halving.

Similarly, the price in the first half of 2016 was around $400, and the price on July 10 was $645.32, an increase of 61.33%. In the first half of 2017, until January 4, the price reached $1,075, and the RMB broke through 8,000. The increase was 66.58 compared to the time of halving, and the increase was 168.75% compared to the first half of 2017.

So from the current perspective, we are still between 400 and 600 US dollars. In addition, given this year's international situation, Brexit, and the US's exit from the Middle East, there are many unstable factors, so the market is still relatively optimistic.

Frank :

The conclusion is that more and more people will pay attention to this field, and more and more real money will flow in. You may ask, what is real money.

Fast Money vs Real Money

Fast money – usually refers to hedge funds worth $1 billion, some of which have dabbled in Bitcoin

Real Money covers more than 100 asset management companies that manage at least $100 billion in assets, 12 of which manage more than $1 trillion in assets, far exceeding Fast Money.

Since the great advocacy of vigorously developing blockchain, the foundation has been laid for blockchain and digital currency technology to gradually become an important strategic tool in the game between major powers .

Let's analyze it from the perspective of pricing power. Professor Stranczy, one of the founders of international political economics, believes that there are two types of power in the international community: relational power and structural power. She divides structural power into four structures: production structure, security structure, financial structure and knowledge structure.

From the perspective of Bitcoin, from the perspective of price, suppliers are divided into two categories: suppliers of new chips and suppliers of existing chips.

As more and more bitcoins are mined, the former's impact on bitcoin price supply gradually weakens, while the latter's impact gradually increases.

Bitcoin's inflation rate: Currently, the total circulation of Bitcoin is about 18 million, and the inflation rate is about 4%. After the halving next year, the inflation rate will be as low as 1.8%.

Before the halving in 2016, the inflation rate was as high as over 8%. Talking about the demand side, it can be roughly divided into two categories: payment demand (cross-border, anonymous gray market, etc.) and value storage demand (HODLER). In general, in terms of production structure, Bitcoin is much simpler than commodities. In the short term, it is a game at the chip level, in which the marginal supply impact of miners is gradually weakened, affected by the combined effect of security structure, financial structure, and knowledge structure.

In the long run, it is the confirmation or falsification of belief, which is most affected by the knowledge structure. Although Bitcoin is decentralized and permissionless according to its original design, it is also subject to certain security structures in the process of gradually integrating into the mainstream. Its security structure mainly comes from the following two aspects:

1. It is the safety guarantee for mining production.

Second, it is the compliance guarantee for legal currency exchange channels and transactions.

From the perspective of financial structure, the penetration of financial capital into Bitcoin pricing power can also be divided into two aspects: capital and market tools.

From a knowledge structure perspective, as a new alternative asset, Bitcoin does not yet have a universally recognized valuation model. But if we recall the valuation models we often mention, whether it is the NVT model (Willy Woo), the MVRV model (Murad Mahmudov & David Puell), or the recently popular scarcity quantitative indicator S2F model (Plan B), they were first proposed by European and American KOLs or investment institutions and introduced to China. These "Western economics" are constantly being implanted into our consciousness, gaining power in the knowledge structure and transforming into real influence.

Under the current production structure of Bitcoin, the four structural forces are interconnected and inseparable, and Bitcoin pricing power is a composite product of the combined forces. China's supply-side advantage in the production structure is constantly deteriorating, while Europe and the United States have established three-dimensional structural rights in security structure (legal compliance system), financial structure (financial capital, market tools and theories), knowledge structure (valuation model), communication channels, etc., and have mastered the pricing power of Bitcoin, which will be difficult to shake in the foreseeable future.

Li Kuang: For mining pools, if the coin price does not double after the halving, income from handling fees and other sources will decrease. For exchange mining pools, they have undertaken some non-mining pool functions such as exchange publicity, packaged transactions, new user traffic, etc. There are huge opportunities in this mining pool competition. More and more exchanges may be involved in the mining pool business. OKEx pool was established earlier and is currently the largest mining pool among exchanges. I wish Sister Alina all the best.

As for mining farms, there will definitely be fewer new mining farms than in 2019. Mining farms with comprehensive advantages (such as electricity price management) will gradually become bigger and stronger, and the newly added mining farms will definitely be mining farms with comprehensive advantages. The mining industry will gradually become standardized and slowly move closer to the IDC standard.

Q3

What stage has the halving reached so far? How long will it last?

Zi Cen:

At least the mining industry has already responded in advance. On the one hand, it is optimistic about the halving market, and on the other hand, it hopes to mine as many bitcoins as possible before the halving. The computing power competition is becoming more and more intense.

The halving brings more than just a reduction in inflation rate. More importantly, holders start to hold back and stop selling. At least none of the old players I have contacted will sell their coins before the halving. According to the experience of the last halving, the next plot should be upward all the way, a correction near the halving, and then continue to attack, and finally break through the previous high, and finally there will be a sea of ​​stars.

Why am I so sure about the wealth feast after breaking the previous high? Because Bitcoin is still a niche investment field . Even though the general public's view on Bitcoin is very neutral now, there is still no desire to invest. The real bull market is unreasonable, it is the Fomo sentiment that surges to the outside world. The off-market Fomo will come after breaking the previous high, and I won't get off the bus until the off-market Fomo comes.

Aladdin:

I am very happy to share this topic with Zicen.

Aladdin Mining Research Institute started planning for this halving market in December last year, and publicly recommended the three mainstream halving mining coins ETC, DASH, and BSV in early January.

We believe that this halving market has already developed to the fish body stage if we look at it from a single market perspective.

ETC, DASH, and BSV have basically completed the first wave of growth before the New Year. We believe that the fish body will be left to other projects that will be halved this year, including BTC. However, if we take a long-term view, we can refer to the two halvings of Bitcoin in 2012 and 2016. A bigger bull market may come within half a year after the reduction.

Therefore, entering the market at a low point this year is an opportunity to seize a bigger bull market . Referring to the previous two halvings, this mainstream halving market may last until early April, 30 days before the Bitcoin halving, which is the end of the fish. Finally, everyone can judge the cyclical changes of the halving market more intuitively and rationally based on the current real-time computing power level and price trend, and do not miss every opportunity.

Q4

What impact will the centralized production reduction of PoW projects such as BTC have on other projects that do not reduce production and other non-PoW mechanism projects?

Zeyu:

As for PoW and centralized production reduction, it actually depends on what kind of economy was originally designed by the project party .

The current centralized halving cycles are all accompanied by good market conditions. This reflects a relatively intuitive money-making effect, which will have a certain guiding role for other non-PoW and non-production reduction projects. New projects in the future will also learn from it.

But it does not necessarily mean that the centralized reduction of PoW is necessarily advanced. This still depends on how the economic model design of the project party is in the early stage of the project. However, the periodicity of halving is indeed a good soil for market topics.

Wang Yan:

When the current mechanism of PoW projects such as Bitcoin is running, it will naturally cause currency deflation. If the halving mechanism is not implemented, it will cause serious inflation over time. The advent of Bitcoin in Satoshi Nakamoto's white paper is also intended to combat the current currency inflation.

If other non-PoW currencies do not have a halving mechanism, the biggest impact will be the problem of currency inflation in the future. If the quantity is temporarily changed to combat inflation, it will be difficult to reach a safe consensus (today we can reduce the possibility of future over-issuance). The simpler the operating mechanism, the less likely it is to change the properties and rules of the currency (wealth) equivalent, which is acceptable to everyone. This is the consensus .

Another benefit of halving is that everyone agrees that the reduction in supply will increase the appreciation of fiat currency, making everyone more willing to hold it.

Q5

Which derivatives on the market can help hedge risks? What are the advantages of Matrixport’s dual-currency wealth management and OKEx option contracts?

Bai Yi:

1. Mainly futures and options. Futures, contracts, forwards, and forward contracts that everyone has heard of are essentially the same. Options and futures can be combined in many ways.

First of all, I would like to emphasize the risk hedging thinking . The financial attributes of the currency and mining circles are very strong. Whether or not there is a hedging thinking is a typical difference between financial professionals and non-professionals. This is also closely related to our yield. Hedging with contracts is relatively simple and flexible; but there are also risks such as basis risk, difficulty in calculating the charging volume, and large liquidation affecting the price/failure to close the position.

Today we will mainly discuss another gem in the derivatives market: options.

2. With this pearl, you can combine it into many interesting ways to increase your income or hedge your risks. For example:

a. Coin hoarders : suitable for selling put options. For example, a 1-month $7,000 put option = 1.5%.

One month later, the price is higher than 7000: Earn 1.5%, you can add leverage

One month later, the price is lower than 7000: Hoard the coins at a cost of 7000

b. Miners: It is suitable to sell call options instead of selling coins every day. For example, the current coin price is $9,300, and the one-month $9,500 call option fee = 6%

One month later, the price is higher than 9500: Earn 6% + 200 USD

One month later, the price is below 9500: Earn 6%, then sell another call option or hoard the coins

Don’t underestimate this 6%. For miners whose electricity costs account for 90%, this means a 60% increase in net profit.

c. Heavily invested miners/leveraged miners/borrowed financing funds : control risks and stabilize returns between 50% and 100%. Hedging risks requires costs, so we recommend a hedging method that does not require costs:

At the same time as the current coin price, the call option fee of 12,000 is equal to the put option fee of 7,500, which means that you sell a call option of 12,000 and collect an option fee, and use this option fee to buy a put option of 7,500.

In this way, the income is locked between 7500 and 12000. Let's briefly introduce these scenarios. There are still many details to pay attention to in implementation.

4. The details of matrixport's dual currency investment and OKEx's options contracts are very different

matrixport: The advantages are that it is easy to understand, easy to use, the product is simple and customizable; the disadvantages are that there are relatively few varieties (only -C, very few gears), the web page requires a VPN, the trading volume is limited, and there is no leverage.

OKEx options contracts : The advantages are rich varieties, convenient and stable operation, and leverage; the disadvantages are slightly higher thresholds and limited trading volume

Of course, the biggest difference for users lies in the option price and delivery method. The option fee of the same option product on OKEx is about 50% higher than that on matrixport, so as an option seller, it is recommended to trade on OKEx.

Matrixport uses physical delivery, while OKEx uses differential delivery. Therefore, users who trade options on OKEx need to conduct an equal amount of transactions in the spot market when exercising their options in order to complete the transaction.

Basically, entry-level players use matrixport; veterans use OKEx and Binance; professionals use Deribit in the Netherlands and CME and BAKKT in the United States; and veteran traders use over-the-counter trading.

Summary: Financial tools can help us increase excess returns or reduce risks, and protect us in the halving market

Li Kuang:

The financial logic behind matrixport dual-currency financial management is similar to that of OKEx options contracts.

There are two differences in comparison:

1. In matrixport dual currency financial management, customers sell options, so they can obtain very high annualized returns.

2. The options behind Matrixport Dual Currency Investment are delivery options (which can be settled in BTC or USDC depending on different situations); OKEx options are differential delivery options - only settled in BTC.

3. Matrixport supports customized one-to-one services, which is relatively flexible. In other words, from the perspective of providing hedging for customers, both products can effectively meet the hedging needs of customers.

Q6

Will the blockchain industry be affected by the current epidemic? Will the delivery of mining machines be delayed?

Wang Yan:

I will mainly talk about the situation in the mine, and Li Kuang, the miner, has more say. Currently, due to the impact of the epidemic, the operating conditions in the mine are not guaranteed.

The situations I personally encounter now are: 1. Due to the extended holiday, multilateral electricity transactions in Xinjiang have been delayed. This situation will result in mines having to use large industrial electricity prices for prepayment, which puts a lot of financial pressure on many mines.

2. Due to the epidemic, site operators will be forced to quarantine for 14 days after returning to the mine after the Chinese New Year. I have asked all my operators to stay at home to extend their vacation, which will lead to a serious shortage of operators. It is very troublesome to purchase daily necessities on site. The mine personnel went to the county town to purchase daily necessities and were stuck at the checkpoint. They could not get in or out, and the life of the on-duty personnel could not be guaranteed. The suspension of logistics has resulted in the inability to return the mining machine for repair, the inability to purchase on-site maintenance materials, and the inability to allocate on-site power and network accessories and other vulnerable parts.

There are also many situations where power facilities malfunction and personnel and equipment cannot enter the site for repair, and there are also production restrictions and power outages in some areas.

Li Kuang:

It will definitely have an impact not only on the mining machine industry, but also on most industries involved in manufacturing. Most industries that are equipped with mining machine accessories will also be affected. A few days ago, major mining machine manufacturers also issued an announcement, stating that delivery after the New Year will be delayed.

For the mining machines that have not yet been produced, I personally think that the production will be delayed by about 20 days. In fact, this is good news for miners, as it means that the difficulty is increasing slowly, and miners who are already mining can make more profits.

Q7

How to seize the last wave of Bitcoin halving?

Frank:

Buying and hoarding Bitcoin, in fact, my conclusion is equivalent to saying nothing. Most people know that Bitcoin is good, but they just can't help buying other altcoins or short-term fomo coins that they think have higher returns. It is harder to hold on to coins than to be a widow. Everyone can check their wallets to see if they find that the Bitcoin they hold is getting less and less.

Think about it this way. The current digital currency market is around one trillion yuan, which is similar to the market value of Moutai. If compared with the traditional gold market of around 7-8 trillion yuan, digital gold Bitcoin still has at least 7-8 times to go.

This is how I see the last wave of Bitcoin halving. According to Zeno's paradox, 2100 will be produced around 2140. Now 12.5 Bitcoins are produced every ten minutes. It is expected that around May 13, 2020, the Bitcoin block reward will be reduced by half again, to 6.25 BTC. From historical data, as the market perceives a shortage of supply, the block reward halving often occurs at the same time as the Bitcoin price rises.

According to the Efficient Markets Theory, if we all know this news, the price will be priced in in advance, and the price of Bitcoin may not be what we want because the market digests this information. Buffett has this view on the efficient market theory. He thinks the market is almost always efficient, but for us, there is a difference of $80 billion between "almost" and "always".

So there are definitely opportunities for us to make money in this. That's why everyone makes a living in the financial field. Because we can always make money from other people's mistakes. So everyone knows that something will happen, which means that not everyone can make money.

I think so, ACF also has its own mining farms, Xinjiang, Inner Mongolia, Sichuan, Yunnan, so I know that most miners want to sell their block rewards as quickly as possible when the price rises, because they need money to pay for mining electricity, data center operating costs, and high-end chips purchased in the never-ending mining "arms race". When the block rewards miners dig out are reduced by half, the market will definitely be affected.

If we analyze the price fluctuations of Bitcoin, we find that Bitcoin has experienced 8 "booms and busts", sometimes with larger fluctuations and sometimes with smaller fluctuations. But if you extend the time, you will find that most investors who hold the currency for more than 39 months have made money. If expressed in terms of Bitcoin's exponential growth, you will find that Bitcoin's performance is actually relatively stable, as its compound annual growth rate over the past nine years has reached 215%.

At this stage, the price of Bitcoin has fallen by about 50% from its peak and has been on a downward trend for the past two years. In terms of time span, this is the longest time that Bitcoin has deviated from its high price since 2011.

While past performance is no guarantee of future performance, this does suggest that the next bull run could push Bitcoin prices even higher.

Zi Cen:

My bull market advice is: Don’t be picky.

The biggest feature of a bull market is the crazy influx of newcomers. Those who grab the food are not picky, but the newcomers don’t know how to be picky.

So the bull market opportunities are by no means limited to Bitcoin.

After the halving in 2016, Bitcoin broke through the previous high of 8,000 and rose to a maximum of 140,000, a 17.5-fold increase. Following this, IOTA rose 10,000 times, ETH, XRP, NEO and other star coins rose 1,000 times, and there were many other currencies that were embarrassed to speak out because they only rose a few hundred times.

Of course, this does not mean that this bull market will have such exaggerated growth multiples as that year. After all, at the bottom of the bear market in 2015, the market value of many currencies had fallen to the level of millions or tens of millions of RMB.

What I want to express is that after Bitcoin leads the bull market, a large number of small-cap currencies will benefit and have very considerable returns. The process of a bull market is: first one stands out, then eight immortals cross the sea, and finally a swarm of demons dance. When one stands out, you must hold on, when eight immortals cross the sea, don't miss it, and when a swarm of demons dance, don't be picky.

The bull market is coming. Try to only look at the advantages and not the disadvantages, only look at the positives and not the negatives. Any project only needs a reason to pull the market, which can be capital, technology, marketing, or even lies.

Don't be picky, don't be critical. That's it.

Thank you for paying attention to the AMA of OKEx mining pool about the production reduction today. Opportunities always come to those who are prepared. Many big names have told you that you are the elites who are left in the bear market with the most passionate passion for blockchain technology. I hope you will seize the opportunity in this halving market and accumulate wealth.

OKEx Mining Pool's first AMA event in 2020: How to seize the halving of mining coins ends here. Finally, I wish everyone can choose the right coin and the right direction to realize their life dreams in 2020

Halving

END

Seize the opportunity

Aladdin Pow Labs is a world-leading digital mining research institution, specializing in sales and hosting of FPGA, AISC and IPFS mining machines, and has full industry chain operation capabilities and partnerships.

Aladdin and Mining Coin Research Institute