5 Tips for Bitcoin Miners in Bears, from BTC.Top CEO Jiang Zhuo’er
Jiang Zhuo’er, BTC.Top CEO, as well as a bitcoin influencer in China, suggested bitcoin miners hold values by hedging in such a bear market, and also warns not to entrust their cryptos to asset management platforms.
Bitcoin, the world’s largest cryptocurrency by market capitalization, has accelerated its slump since mid-November amid the massive crypto market sell-off. On Dec 8 at 02:29 (UTC+8), the original digital currency once again hit a fresh low for the year down to $3,295, according to coinmarketcap.
At Chainge, a blockchain technology salon held by 8btc News over the past weekend, Jiang gave some good and realistic advice for crypto miners amid the current accelerated bitcoin slump.
- It is suggested to sign a hosting contract for only half a year instead of a full year, considering the hydropower substitute in China- thermal power – has been driven up in price, usually charged between 0.35-0.37 yuan ($0.05), as a result of the current dry season which troubles those mines powered by cheap hydroelectricity. When the wet season comes back half a year later, the capacity of a mining farm will increase in scale but lots of miners have been shut down before that, at that time, hydropower glut will lead to the electricity price drop, expectedly 0.25 or even 0.2 yuan ($0.028) per kWh.
- Looking for overseas mines. But beware that it may be rather difficult to build large compliant mines in places like Iran (electricity price there is said to be as cheap as 0.03 yuan/kWh, or $0.004/kWh). To avoid risks, you can move there your older mining rigs that can hardly make ends meet in your country.
- Some Antminer models and Avalon miners have featured new firmware that led to less power consumption. BTC.Top (currently world’s sixth largest bitcoin mining pool) will soon introduce firmware that can be switched between three different modes of low power consumption, non-overclocking and overclocking…, which is good for use in a bear market when the mining difficulty swings violently.
- Bitcoin is likely to bottom out around $3,000 during the upcoming spring festival of 2019, with a similar upward and downward trend to 2015. For miners, it is possible to hedge on a perpetual contract with Bitmex when the price hits highs, but no more than what you can mine in 2019 since a bull market may follow the halving in 2020.
- DO NOT deposit your coins in platforms for value-added services in a bearish market. As there’re risks that small platforms may run away with your coins, while big ones may use your coins to crush the market.