Is the halving really a disaster for Bitcoin miners? The international mining layout shows how fierce the competition is

Source: Xiaolu Chain

As for the question of whether mining or cryptocurrency trading is more suitable for new retail investors, I have already written an article to analyze it. However, as the halving approaches, it seems that many students are confused again. So, today I will continue to talk about this issue. I have dabbled in both cryptocurrency trading and mining, and perhaps I can give you some reference from my experience and feelings.

Before sharing my experience, let’s take a look at some data. According to recent data, 66% of the global Bitcoin network computing power comes from China. The main coin-producing provinces in China are Sichuan, Yunnan and Inner Mongolia. Although the country has previously conducted an investigation and rectification of the mining industry in Inner Mongolia, Sichuan alone is enough to support nearly 50% of the global hash rate.

At this time, someone may ask, doesn’t the country not support Bitcoin mining, and has it rectified the mining industry before? Emmm, Xiaolu would like to clarify here that the previous rectification in Inner Mongolia was the use of thermal power mining, and there were problems of tax evasion and irregular business operations. However, Sichuan’s advantage in becoming a major mining province lies in its unique water power generation resources. Sichuan has a large surplus of hydropower, so the electricity price will be relatively lower. Using surplus electricity for mining can, on the one hand, make more efficient use of resources and save the cost of power transmission, which is a win-win situation for both power plants and mines.

The attitude of the country towards mining can be seen from the fact that the mining industry was removed from the list of eliminated industries this year. Judging from the current attitude, the country does not oppose legal and compliant mining, but has not made any further statement. Perhaps for the time being, it can be understood that it does not oppose, but does not recommend it either.

However, the key reason why my country's Bitcoin computing power is so strong is that the world's three largest mining machine manufacturers are all in China. Which three are they? They are naturally Bitmain, whose recent domineering CEO competition has not yet ended, Canaan Creative, which has great potential to overtake in the chaos, and MicroBit, which has a low presence but cannot be underestimated.

Although the Chinese government is not particularly friendly to Bitcoin and other cryptocurrencies, my country has the world's leading mining machine technology and production scale. Doesn't it seem a bit contradictory? Emmm, Xiaolu can only say that many things cannot be judged by appearance alone!

my country currently has an absolute advantage in the mining industry. The earliest mining machine production line came from my country's Friedcat, and the world's top three mining machines are also from China. my country has unique hydropower resources and a large number of miners. So in the mining industry, if China wants to dominate, who else can compete with it?

However, the United States and Russia are also planning their mining industries. First, the United States announced two months ago that blockchain innovation Layer1 will use independently developed cooling systems and cutting-edge hardware equipment to mine, in order to reduce the dependence of domestic miners on Chinese mining machine manufacturers such as Bitcoin Mainland. Yes, they are talking about dependence. The mining company RMC, which announced plans to build a mine in the Republic of Karelia, is affiliated with the Russian Network Inspection Agency. The company also claimed that once the site equipment is ready, they will capture 1/5 of the Bitcoin hash value.

Both countries are aggressive and eager to take advantage of the situation! It seems that the future global mining situation may also present a situation of three countries competing for hegemony. So Xiaolu estimates that if the Bitcoin halving next year is really a disaster for miners, then why should China, the United States, and Russia compete for layout in the mining industry?

However, Xiaolu believes that the halving next year will still have a significant impact on the mining industry. A large number of old mining machines will be phased out, and new mining machines will develop towards high computing power and low power consumption. However, Xiaolu estimates that many small and medium-sized mining farms will also be impacted. Therefore, Xiaolu thinks that after the halving, what we need to consider is not whether to mine or not, but how to choose mining machines and hosting squares. In terms of mining machines, low power consumption and high computing power are the main ones. However, the specific brands and models can be considered according to their own needs. If you go the brand route, Ant Mine is worthy of being the Hermes of the mining machine industry, and if you like the cost-effective route, you can choose brands such as Xindong and Shenma according to your needs. It is also quite good.

If you still have no idea, then consider looking for a regular and reliable mining machine platform to experience and compare information on price and performance. However, if you choose a platform, you must pay attention to distinguishing the qualifications and reputation of the platform. After all, the current market is still relatively chaotic, and the choice of platform is still very important. Xiaolu previously purchased and hosted mining machines at Thundercat Mining Machines. Relatively speaking, the experience was quite good, and some of the activities they launched were quite attractive. For example, Xiaolu will have to give it a try next time for the zero-cost mining machine activity, face covering! Of course, if you have a good platform to recommend, you are welcome to leave a message below the post, and Xiaolu will also help you investigate.

When choosing a managed mining farm, you should try to choose a regular large-scale mining farm. After all, generally speaking, the pressure resistance of a regular large-scale mining farm is much stronger than that of a small and medium-sized mining farm. Xiaolu has written an article before that breaks down the selection of mining farms in detail. Due to space constraints, I will not go into details today. If you are interested, you can read Xiaolu’s previous article, or leave a message to communicate.

Well, this is my analysis of the mining industry after the halving, as well as my new experience. It seems a little off topic. I will list the specific data analysis of buying coins and mining in the next article. If you are interested in the specific data comparison, don’t miss it.