The halving triggers the shutdown of some miners, impacting the mining pool computing power ranking
The halving has come. For the mining industry, what impacts and challenges will the halving bring to the mining industry?
Regarding what challenges the halving will bring to the mining pool, the status of miners, changes in computing power, and the difference between this halving and the 2016 halving, Mr. Chen believes that Bitcoin mining rewards will be halved again, from 12.5BTC To 6.25 BTC, the halving will reduce the income of the mining pool. The shutdown of some miners triggered by the halving will bring about a large fluctuation in the proportion of the mining pool’s computing power, and even affect the ranking and brand of the mining pool. In the past six months, the BTC mining pool ranking is relatively stable.
During the first halving event in November 2012, the computing power of Bitcoin’s entire network remained at around 27.6T for 80 days. Until mid-February 2013, the computing power of the entire network exceeded 30T. On July 10, 2016, Bitcoin was halved for the second time. On July 1, 2016, the computing power of the entire network dropped from 1.73E to 1.54E on July 12 after the halving, a drop of 10.98%. The data shows the mentality of miners relatively stable.
The biggest difference between this halving and the previous halving is that after the previous two halvings, there is a strong market expectation for the third halving. The market expects that the halving will bring great market hope. Under the influence of the epidemic, the current halving has led to a different flow of funds, and the currency and mining circles have been more or less affected by this. This makes the market changes after the third halving more confusing and worth looking forward to.
After the halving, if the currency price rises, it will increase the miners' income to a certain extent, and it will attract more miners to enter the market, or the mining machines will be iterated, and the computing power may reverse and rise again after a short-term decline.
If the currency price falls, the normal logic is that after halving, the revenue will be halved, and most of the mining machines will be out, and the computing power will also be halved, but Mr. Chen believes that this possibility is very small. First, the miners iterate the mining machines, and the energy consumption ratio of the new mining machines will be greatly improved. , when the electricity bill remains the same, the unit computing power consumes less electricity, followed by halving in case of high water, the miner’s electricity bill drops by about 40% during the high water season, which eases the pressure on mining again, so this time the halving has an impact on the computing power It will not be very large, even if the currency price remains unchanged, the computing power will not drop to 50%.
After mentioning that since BTC reached $13,000 in 2019, the price of Bitcoin has not followed the expected price development in the industry. How has the mining pool business developed during this period of time? , Mr. Chen said that the mining pool is for the miners. Last year’s wave of Mavericks also brought a lot of funds into the mining circle. The computing power once rose from about 60E to about 120E, an increase of 100%. The leading BTC mine The computing power of the pool has increased significantly, and the computing power of the top ten mining pools has also increased.
However, whether the increase in computing power will bring about an increase in the income of the mining pool depends on whether the proportion of computing power increases and whether the handling fee is consistent. As the exchange joins the competition for the share of the mining pool, the competition for handling fees has intensified, which is very important for miners. While reducing handling fees, mining pool services are becoming more diversified, such as providing one-stop trading on exchanges and hedging services. Larger mining machine assets have led to mining machine mortgage loans, miners BTC mortgage loans, and cloud computing power business-oriented Small and medium retail miners, etc., bring new growth points to the income of the mining pool.
Miners have more tools to improve mining certainty and lock in income.
It is worth noting that the increase in computing power lags behind the price of the currency. One of the phenomena brought about is that the price of the currency has fallen from 13,000 dollars, but the computing power of the entire network has doubled, resulting in a large bubble. Ben is under a lot of pressure.
Regarding how the mining pool should adjust to the halving, Mr. Chen listed the following typical coping strategies:
1. The mining pool supports one-click switching of BTC/BCH/BSV, and miners can freely switch to coins with higher returns, providing miners with more choices;
2. Mining pools often support multiple currencies. For example, eth is not facing halving this year, and its income will generally not be affected;
3. Some mining pools are vigorously expanding their computing power share to resist the reduction in income after halving;
4. Provide value-added services, such as hedging, custody, mining machine pledge loan, BTC pledge loan, cloud computing power, etc.;
5. The mining pool of the exchange forms a unique moat for the mining pool through the strong resource capabilities and brand capabilities of the exchange.
