What do the big guys say about the mining industry in 2019?

Recently, the BHB Ponzi scheme collapsed, and the trader, who was born in 1994, was blocked in his office. He wanted to use his wedding ring to pay off his debts in order to appease the anger of investors.

Similar rights protection incidents are common in the cryptocurrency circle, with dichlorvos being sprayed on bigwigs, and leeks standing on rooftops... Various fancy rights protection methods continue to emerge. Every investment event of leeks is a bizarre and tortuous story.

Compared with the "high-end, atmospheric and classy" cryptocurrency circle, the mining circle is much more "low-key, luxurious and meaningful".

01

“It is not something that can be told to outsiders .”

After about 5 hours of driving, we finally met the mine owner Wang Lin (pseudonym). He had dark skin, which matched the dark coat he was wearing.

After greeting everyone warmly, Wang Lin frowned slightly when he learned that there was a reporter among the group. He then expressed the hope that the reporter would not report the actual location of the mining.

This "untold story" aroused my curiosity even more. Why did they hide the location? Could it be related to the forced closure of a mine in a certain place?

It turns out that Wang Lin had a mine in Xinjiang before, but it was because of media reports that it attracted too much attention and eventually caused unnecessary trouble, so he had to stop mining. Although he had all the necessary procedures, one fish could not stir up the whole pot. Now, he just wants to keep a low profile when mining.

Wang Lin, who is in front of us, has experienced the baptism of years. Everyone guessed that he was about 40 years old, but he was actually only 31 years old. In his words, "I just look a little anxious." Without knowing more, no one would know that he is the father of three children and has more than 30,000 mining machines.

"Your children can each get 10,000 units."

Hearing this, Wang Lin, who was sitting opposite, couldn't help but laugh out loud and said, "When the children grow up, these mining machines should have been eliminated long ago. Recently, I bought another batch of mining machines, but they are all second-hand and were just installed before the New Year."

02

I once wanted to travel the world with a sword

When many people were quitting, Wang Lin chose to take over. In his mind, the mining circle is the closest to the real world of blockchain. He believes that the coins mined now will have greater value one day if they are hoarded, and the right thing to do now is to mine them steadily.

The view outside the window is endless, and there seems to be a wisp of smoke rising from the horizon. When a person stands on the vast land, the most personal feeling is that there is only a tiny self between heaven and earth. Take a deep breath of fresh air, or shout loudly, and you will feel more relaxed.

The dust of the soul has gone away, and the troubles of the world are not worth mentioning. This is one of the reasons why Wang Lin chose to stay here. He said that in his spare time, he often thinks quietly by himself or reads novels.

Martial arts novels are Wang Lin's favorite. He said that when he was young, he wanted to travel the world with a sword. Although he can't just go anywhere now, it's nice to read novels when he's bored.

The flood season is coming soon. Have you considered building a farm in an area with convenient water and electricity supply? Wang Lin gave a negative answer.

" No matter where we go, the key is the electricity price. Although it is a bear market, we can still make some small profits here because we get low-cost electricity prices. I don't plan to go to such a far place again." Wang Lin said meaningfully.

The most vivid impression I got from chatting with him was that he was very straightforward, low-key, pragmatic, and in one word, "steady." People in the same industry said that this was the epitome of most miners.

03

What miners are pursuing: cheap electricity

Although small, it has all the necessary functions. A small mining machine full of "nerves" affects the nerves of countless people and also witnesses the ups and downs of the virtual currency market.

Looking back at 2018, the mining industry has ushered in the darkest moment of its life. Against this backdrop, there is no doubt that the overall performance growth is not as rapid as when the market is good. Given the differences in management and risk resistance of different companies, the performance of mining machine companies is very different.

Some people are holding on, while others have left the market in dismay.

“When mining is no longer profitable, some people will choose to shut down their machines because the income is dynamic, and the income of those who do not shut down their machines will increase accordingly. It depends on the operation and maintenance costs centered on electricity. If the costs are high, they will be shut down, and if the costs are low, they will not be shut down.” said an industry insider.

Cheap electricity has always been what miners pursue.

Looking ahead to 2019, how will the mining market change and develop?

Zhang Wencheng, deputy general manager of BitMicroelectronics Technology, said that what may happen in 2019 is that the price of coins will continue to fluctuate at a low price, but with the arrival of the domestic flood season, the transfer of second-hand mining machines to low-power areas will lead to an increase in computing power. This situation will cause miners with high electricity costs to buy new mining machines to resist the risk of high-power mining machines shutting down . BitMicro will be committed to providing customers with mining machines with extreme performance in 2019 to empower investors with risk resistance.

Wang Xiaoyi, CEO of Renren Computing, said that the diversified development of consensus algorithms in 2019 and the launch of grin and ipfs mainnets will divert some of the computing power of old miners.

Chen Lei, Secretary General of Peking University Blockchain Club and founder of BitBlue Whale Capital, said that the entire mining market will develop in the direction of scale, centralization, and brand specialization. We will work together for warmth. When customers do not make money, we will not make money either. We are currently in a state of thin profits. We make money but less than before. We are ultimately bullish. In the future, we will focus more on the mining circle and provide some products or services. This is still the direction we are exploring.

During this year's Spring Festival, Alipay launched the "Collect Five Blessings" activity and also launched the Huahua Card, which can help pay back Huabei. However, those who get the Huahua Card have to be selected in a lottery to have their Huabei paid back.

Cheap electricity is like a flower card in the mining circle. Everyone who is involved wants to get it, but not everyone can get it. Even if you get a flower card, you may not be able to get the chance to be paid back by Huabei, after all, you still have to be drawn again. Mining farms that get cheap electricity must also be carefully managed and cared for in order to have good returns.