Binance’s newly launched hash rate coin BTCST is very popular. Data on the evening of January 10 showed that 10.41 million BNB, 17,137 Bitcoin, and 210 million BUSD were pledged, with a total pledged amount of more than 1.3 billion U.S. dollars.

The background of the emergence of Hashcoin is that the concept of mining became popular with the skyrocketing of Bitcoin. It is reported that there will be many companies preparing to launch HashCoin in the future.

The goal of BTCST is to be the "gray scale" in the computing power field. Each BTCST token is anchored to the Bitcoin computing power of 0.1 TH/s and a power consumption ratio of 60 W/TH.

In Binance's 1EO-like "new coin mining", BTCST announced that the total amount is 1 million, and the total amount that Binance can mine is 40,000, which is equivalent to 4000T computing power. At present, the total computing power is 100P, and the white paper stated that it plans to increase to 1000P in February this year.

Considering its energy efficiency ratio of 60W/TH, it is equivalent to 74 Whatsminer M21-54T mining machines. Referring to the current quotation of second-hand mining machines, the total value is about 1-1.2 million RMB.

Is it absurd to grab 1.2 million RMB with a pledge amount of 1.3 billion US dollars? Therefore, if such an amount is put into Binance wealth management, the daily income is 210,000 US dollars, more than 1.2 million RMB.

Hashcoin is actually not new. Due to the gathering of Chinese miners, many people have tried to make Hashcoin. For example, Yuhong’s XMX is burned with the proceeds obtained from mining. BTCST currently has a computing power of 100,000T. Yuhong claimed to have a computing power of 350,000 terabytes at the time. However, Yuhong subsequently chose to install the mining machine into the listed company BTBT.

Going forward, SAM, the boss of FTX, proposed to consider tokenizing the ant mining machine on Twitter, and proposed to anchor the currency of an ant mining machine’s computing power. But only at the level of imagination. In fact, FTX has launched Bitcoin computing power contracts, but there are very few users, and the 24-hour transaction volume is only 900 US dollars.

The essential question of BTCST and other computing power coins is whether it is valuable to tokenize computing power.

The problems at the value level are:

1. As a financial product, general cryptocurrency has uncertainty and future expectations, so there is room for investment. Bitcoin is bullish because it is expected to become Internet gold; Ethereum is bullish because it is expected to become the infrastructure of cryptocurrency after POS is completed.

The value of each BTCST can be estimated based on the revenue of the mining machine. According to the price of the second-hand Whatsminer M21 mentioned above, it can be calculated that the basic price of each BTCST is around RMB 28.

BTCST is a completely centralized product at the moment (miners will be allowed to access computing power in the future), and Binance is pushing for blessings, so the value of each piece must be higher than 28 yuan, but if it soars to 28 US dollars, will investors be able to accept? I'm afraid it will be difficult, because its real value can be clearly calculated, and future expectations are relatively vague.

For investors who use it as a mining product, it is certainly unacceptable to inflated prices (not as good as mining machine hosting or cloud computing power). For the speculative retail hot money, in the current bull market, there may also be a lack of room for imagination.

2. In terms of feasibility, BTCST will face the same troubles as cloud computing power: few people buy in a bear market, and few people sell in a bull market. At present, it is hard to find a mining machine, and all walks of life have continued bullish expectations for Bitcoin. Most miners will choose to mine rather than sell computing power, and the price of spot computing power is also rising steadily.

3. Another problem is that due to the rising computing power in 2021, it is expected that more than 600,000 large computing power mining machines will be shipped. Due to the serious shortage of Bitcoin mining machines in 2020, the increase in computing power in 2021 will most likely be higher than the increase in currency prices. Therefore, the bitcoin income of each BTCST will continue to decrease, which may lead to the expected decline in the price of BTCST.

Wu said that in the survey conducted by the mining community, 15% of the respondents were optimistic, 32.5% were not optimistic, and 52.5% were on the sidelines. Of course, people in the mining industry are relatively conservative, and the audience of BTCST is actually more retail investors who are not familiar with the mining industry.

There are two leaders of BTCST: one is KE WO YING MINGING, who is not familiar with the industry, and is rumored to be an OTC dealer invested by Binance; the other is Hashrate 360, which is more familiar to the industry. The former is an old partner of Binance and has internal resources of Binance; the latter has resources in the mining industry and is a relatively good cooperation combination.

The official reply of BTCST believes that: 1. Cloud computing power is irrevocable, non-refundable, and has no liquidity at all, but BTCST holders can participate in and exit mining at any time, and buy and sell in the secondary market at any time. 2. For an example of the establishment of a "liquidity premium", please see the market price of Grayscale GBTC is about 20% higher than that of BTC; the market value of the stocks of 3 bitcoin mining concept US stocks (BTBT, MARA, RIOT) is 20% of the actual mining assets - 60 times.

Compared with cloud computing power, BTCST is indeed more liquid, but whether Grayscale and U.S. stock mining companies have a liquidity premium, I am afraid I cannot agree.

Grayscale is a well-known "compliance premium", and its liquidity is very weak anyway; U.S. stock mining companies also have a "compliance premium" to some extent, and U.S. investment institutions can buy stocks of listed companies to invest in Bitcoin concept; in addition, it is also caused by market making by market makers. In this regard, due to the security nature of BTCST, American investors should not be allowed to buy it.

Another core question, do investors who buy mining machines need strong liquidity? Generally, investing in mining itself is a conservative investment and does not require too much liquidity; if you buy mining machine hosting, the liquidity of the second-hand mining machine itself is also good.

In all fairness, BTCST has done a lot better than many previous computing power coins, with the support of Binance, the audit of security agencies, and an open access method. In terms of transparency, the Binance Mining Pool API announces the daily revenue per T of the mining pool, and the details of electricity deduction are shown in the white paper. The distribution of revenue is executed by the dApp smart contract, and the entire process is clear and transparent. This is also an advantage.

BTCST has also designed a pledge mechanism. Unlike most of the direct distribution of income/candy to holders, BTCST needs to be pledged in DAPP for a full day to obtain income. It takes many days to withdraw the income, which will cause scarcity of tradable quantities, but does not Does not solve the above-mentioned essential problem.

In fact, taking a step back, if it is seriously promoted, it may be a more appropriate choice to make BTCST a stable indicator anchoring the market price of mining machines. But first, this requires long-termism, which is more difficult for Chinese coin issuers; second, it requires stronger hosts or alliances. The current two initiators have good capabilities and average influence.

It is reported that some important players in other industries are also making computing power tokens. In the future, this market may become more crowded, and there may be winners in the competition.