Viewpoint | GPU mining will continue to benefit in the next two years

A new round of entry opportunities has emerged

The bear market is over, and a new upward cycle from bear to bull is brewing . Why do we say that the bear market is over? First of all, the market has changed the trend of the bear market, and there has been a continuous increase in volume, completely breaking away from the inertia of the bear market decline. Second, under the expectation of production cuts, users continue to be bullish, and the sentiment is very strong. Many people have sufficient confidence in the future. Third, looking at the changes in Bitcoin's total network computing power, it has broken a new high and re-entered a rising cycle. Ethereum has also begun to show a reversal trend.

Under the expected cycle of production cuts and new technological changes, some new fundamental benefits are brewing within the entire digital currency. First, Bitcoin and Litecoin are approaching production cuts, then the Lightning Network is becoming more mature, and Ethereum's 2.0 technology is constantly making progress. The improvement of these technologies will form an important outbreak in a certain period of time to support a new round of increases.

The third point is that as a miner, one of the factors that determine the miner's income is the potential for currency price increases, and the second is the cost of mining. At present, we have entered the flood season, and electricity costs already have a very low cost advantage. At present, compared with the reasonable price of mining machines, combined with the relatively low electricity bill, apart from the market factors, the cost of mining is relatively low, which is a good opportunity to enter the market. Let me give you an example. During the period when the price of mining machines was low, many people missed the 700 yuan S9 Antminer and the 1,500 yuan Panda Miner. But if we enter the market now, we are facing a clearer opportunity market. The value of mining machines has returned, but it is still underestimated. Because we can see that the situation is already very clear, the current price of mining machines is suitable for investment layout, and a new round of investment opportunities in mining has emerged.

GPU miners’ hesitation and entanglement — Ethereum’s transition to POS

Litecoin or Bitcoin is approaching a production cut. Bitcoin will be cut in May 2020, and Litecoin will be cut in August 2019. Miners have begun to gear up, thinking about mining more coins before the production cut. For Ethereum miners, it is more melancholy and entangled, always worried that the mining machines in their hands can no longer mine, and the enthusiasm of miners for mining has been greatly reduced. First of all, analyzing a development roadmap of Ethereum, it will take nearly one to two years to completely switch from POW to POS. By the end of the year or the beginning of next year, it will gradually turn into a mixed chain of POW+POS, and then it will take time to completely transition to POS. In this time period, it is a very good mining bonus period. In fact, we can compare it with the previous round. Before 2017, it was a dormant period for Ethereum mining. Similarly, before switching to POS, it was also a good period for mining before the next round of the market. We often talk about the halving of Bitcoin production. Along with a bull market, Litecoin production has halved, and the current coin price is also skyrocketing. Ethereum's own economic policy will also reduce the supply, and it will be more intense than Bitcoin and Litecoin. Compared with the current inflation rates of several major currencies: Bitcoin 3.7%, Ethereum 4.3%, Litecoin 8.47%, the annual inflation rate after the reduction: Bitcoin 1.8%, Litecoin 4.1%, Ethereum's annual inflation rate after switching to POS is expected to be less than 1%. Such a strong consensus currency, the number of wallet addresses of users has been increasing, the community influence has been increasing, and the growth rate is very fast, no less than Bitcoin. While the production is being reduced significantly, we have reason to believe that Ethereum has a higher expectation of rising and a technical support basis than other currencies.

In the process of Ethereum switching to POS, nodes are required to carry out mortgage mining, and some ether will be locked in the POS network for mining. This is divided into two parts. The first part is that after the entire POS network matures, about 1/3 of the ether will be used for mortgage. Of course, it is not completely locked, so the liquidity of the market will decrease; the second part is the process of switching from POW to POS. Because the two chains are completely different in the early stage, the whole process is the process of continuously transferring the coins on the POW chain to the POS chain. The coins in the network are frozen for a long time. Only when the ether is completely transferred can it start to circulate. Therefore, from the beginning of the switch to POS, Ethereum will enter a new deflation cycle .

Under the GAS mechanism of Ethereum 2.0, a portion of the ether used as handling fees will be destroyed, which will also aggravate the existing reduction in Ethereum production. After Ethereum completes the transition to POS, in fact, in addition to the reduction in the supply of economic policies, Ethereum's entry into the 2.0 stage means that the computing performance will be improved by a thousand times compared to now. This major benefit is a strong support.

There are still opportunities to mine Ethereum. In addition to the potential mining bonus period, you can also become a mortgage node after switching to POS to obtain corresponding income. In addition to Ethereum, GPU mining has also seen the emergence of many new small currency mining. Win before ASIC machines, get the corresponding mining income early, and meet the next POW public chain rising star.

Author: Panda Miner