Sichuan mine flooded, beware of "parallel import mining machines" entering the market

Sichuan mine flooded, beware of "parallel import mining machines" entering the market
This year's flood season is a mixed blessing for miners. The good news is that the recovery of the secondary market coincides with the flood season in Sichuan, so any model of mining machine will be profitable as long as it can be turned on. The bad news is that Sichuan's climate this year seems to be not "cooperative". First, the rainy season that should have arrived in early May was delayed for more than a month, and then the sudden concentrated rainfall last week caused flash floods in Ganzi, Aba, Liangzhou and other places, affecting the Bitcoin mines in those places.


From the "live broadcast" in the circle of friends, miners after the flash flood were searching for mining machines buried in the soil with their bare hands in a "tidal flat". The disaster situation was reflected in the Bitcoin network's computing power dropped sharply in a short period of time. According to the RHY mine weekly report: the daily Bitcoin computing power dropped from 78EH to 74EH in a short period of time.

From a data perspective, the 4EH computing power reduction is equivalent to approximately 260,000 Ant S9se machines . Of course, this includes minor accidents such as power outages and network outages caused by disasters.


1. Floods happen every year, but miners have become indifferent to them
In fact, Sichuan's hydropower advantage is brought about by its undulating terrain and abundant rainfall in summer, and this natural condition also lays a time bomb for the outbreak of mountain torrents. Natural disasters caused by rainfall in summer are commonplace in Sichuan during the flood season, the only difference is the scale.


Miners have taken natural disasters into consideration when selecting sites and constructing mines. Lao Zhang, a miner working on the front line of a Sichuan mine, said that the intensity and scope of this year's flash floods were not particularly severe. At least among Lao Zhang's friends, the number of miners affected this year was far less than last year.

(The picture shows the damage to the mine this year, uploaded to Twitter by REDLI, the founder of Babbitt)

In addition to mountain torrents, Sichuan also has various extreme geographical events such as earthquakes and mudslides that test every miner. "Today's miners are very clear about life. Once there is a disaster warning, they will evacuate in advance, unlike in the past when they had to live and die with the mine."

The calm demeanor is the same impression we got from interviewing different miners . Perhaps people will gradually learn to adapt to a certain environment after being in it for a long time! Just like the residents of island countries where earthquakes are common, they still have to avoid earthquakes, but they obviously have more coping skills and calmness.

The front-line miners' words " it's a small matter, don't panic " are reflected in the total network computing power. Bitcoin's computing power has rebounded to around 79EH this week. Obviously, this wave of flash floods has not affected the pace of most miners making money.

 

2. The whereabouts of the soaked mining machines remain unknown, and they may flow into the second-hand market in large quantities
Although the miners' response to the flash floods can be said to be downplayed, and the large number of new mining machines put on the shelves also concealed some of the truth of the disaster. It seems that the mining industry is thriving, but one question that cannot be avoided is: in the disaster-stricken mines, will the mining machines soaked in mud and water be treated in this way in the end?


As it is the flood season, there are millions of mining machines in operation in Sichuan Province alone. Even if the affected proportion is only 1%, there will be tens of thousands of mining machines that are flooded and unable to work. The market value of these affected mining machines is conservatively estimated to be tens of millions of yuan.

Miner Lao Zhang told us that miners are generally reluctant to speak out when encountering such things. Regular mines will choose to replace and repair the mining machine and continue to use it, or dismantle it to make spare parts for the mine, depending on the damage.

Small-scale or private mines are different. There are specialized middlemen who recycle the damaged mining machines . They are very good at it and the prices they offer are a bit tempting. After buying them in bulk, they will be repaired and refurbished and mixed with normal machines to flow into the second-hand market.

Miners all know that once a mining machine is put on the shelf, it will run non-stop for 24 hours until it is damaged or no longer profitable. Therefore, stability is a very important indicator of mining machine performance. Many veteran miners would rather choose machines with stable performance and are on the market in batches than try new machines with high performance parameters but not verified by the market.

The damaged mining machines are physically damaged by water, sand and impact, and their stability is far from the level of normal machines even after refurbishment. Second-hand mining machine dealers usually use sand mixing to deal with these problematic machines.

Second-hand dealers will mix a certain proportion of defective machines into each batch of second-hand mining machines sold. In this way, users will not easily find defective machines during acceptance. After all, second-hand machines are not returned or exchanged after they are shipped, and users cannot do anything to these second-hand mining machine dealers.

Driven by profit, a large number of damaged mining machines will flow into the second-hand mining machine market in this form.


3. Resist the flow of damaged mining machines into the market. The core is to rebuild the mining machine trading mechanism


The second-hand mining machine trading market is currently mainly composed of scattered small dealers. Because of their small scale and inconspicuousness, the industry generally calls these second-hand dealers second-hand dealers . In fact, hundreds of thousands of second-hand mining machines still flow to first-tier mines through their hands every year.


The golden age of second-hand mining machine trade was between April and July this year. The secondary market rose rapidly beyond everyone's expectations, and new mining machines were hard to come by on the market. A large number of second-hand mining machines that were eliminated in the bear market became sought-after treasures in the market.

At the peak, the machines bought back for 300 yuan were sold for 1800 yuan. So some people say that the second-hand mining machine dealers are the biggest beneficiaries of this round of market.

At this time, the second-hand mining machine trading market began to enter everyone's field of vision. In addition to sighing at the second-hand dealers making money quickly, more people actually complained about the trading rules of second-hand mining machines, including many miners who had suffered losses in this regard.

The trading model of second-hand mining machines is quite similar to the traditional second-hand market. There is no warranty and no after-sales service. The goods are not returned or exchanged. Of course, for this kind of market rules, miners generally choose to inspect the goods on site. After the price is agreed, the buyer will personally go to the site to light up and inspect the mining machines one by one, which is time-consuming and labor-intensive, and the transaction efficiency is extremely low.

Even if you inspect the goods in person, there are still many problems in the transaction of second-hand mining machines. Liu Neng, an old miner who has suffered losses in this regard, told us: Inspecting the goods in person seems to be foolproof, but the inspection is always in a hurry. The only thing that can be identified is whether the mining machine can work, and it is not certain whether the computing power meets the standard, let alone whether the hardware of the mining machine has been replaced or has other defects.

In order to prevent various damaged mining machines from entering the market, it is necessary to fundamentally reformulate the trading rules for second-hand mining machines, and it is obviously impossible to rely on the self-discipline of second-hand mining machine dealers. Fortunately, some online vertical mining trading platforms have begun to pay attention to the second-hand mining machine market and have optimized the second-hand mining machine trading process using the spirit of the Internet, making the second-hand mining machine trading rules more fair.

On vertical mining machine malls, second-hand mining machine transactions can bypass professional second-hand mining machine dealers and conduct point-to-point transactions. Ordinary miners who need to sell their old mining machines can choose to become merchants on certain malls to list them for sale. This C2C platform model can avoid many routines of professional sellers.

According to the person in charge of a certain shopping mall, the mall also provides a platform-mediated transaction guarantee service for the transaction of second-hand mining machines . Buyers can leave enough 24 hours to inspect the goods after the delivery of the mining machine. Buyers can choose to return the goods unconditionally within 24 hours.

With the intervention of more Internet-oriented forces, the limitations of the traditional second-hand mining machine trading model will be gradually replaced, and the trading pattern of second-hand mining machines will become more fair.

 

Author: Calculator


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