Hot search keywords

Hot search keywords

8btc Online Summit | Chinese Crypto Mining Tycoons’ View on the Upcoming Bitcoin Halving

Hosted by China’s leading blockchain news media 8BTC from March to May, this year’s online conference is themed “Trend Rises Again 2020” with eight forums covering topics ranging from blockchain technology, crypto mining, DeFi, as well as bitcoin halving.

We (8btc) have the chance to sit down with these crypto mining experts in China talking about their thoughts on the crypto mining and what’s coming to bitcoin halving in 2020.

20200318183045

In the first live broadcast of the mining forum, we invited four mining tycoons in China: Yang Xiao, COO of pandaminer&OXBTC, Zhuang Zhong, CEO of BTC.com, Lorry, IRD (industry research director) of AmberGroup, and Chen Lei, Chen Lei, Founder of Bitelanjing(比特蓝鲸). They have judgments as follows:

1. The so-called bull market is not over, in a year or half it will come.

2. Not only the bull market is over, but a new bear market starts. I don’t know when it will stop. We should not worry about how to rebound, but more about keeping cash and preparing for the winter.

3. I don’t think the bull market has come yet, and it may be delayed for a long time. But in two or three months, there may be a pump.

4. In the new era, crypto miners need to learn to use more financial derivatives to protect their interests.

5. Most bitcoin has been mined out. In the next four years, if there is no way to bring bitcoin to a larger market space, it’s difficult to open up a new rising space as well as the bull market in 2017.

6. When the mining disaster is going on, it is obvious that it is difficult for the bitcoin price to demonstrate a V-shaped reversal within one or two months.

7. Judging from the previous experience, miners can basically enjoy a whole bull, while coin speculation often just enjoy the head of the bull and run away.

8. I can only tell you that the cost of a bitcoin is about 80% – 90% of the current price.

Q1: What are you and your enterprises doing?

Yang Xiao, COO of pandaminer&OXBTC: Founded in 2014, pandaminer is the first group of crypto miners in the world. At present, our business is made up of mining hardware, mining infrastructure, miner service and ecological development, covering the global miner group.

We are focusing the mining business as halving and wet season is coming. At the same time, as one of the oldest cloud computing platforms in the world, OXBTC cloud computing platform is also making efforts to help more individual miners gain the mining dividend.

The dump of the market has an impact on our half-year plan, but we believe that “challenge” and “opportunity” coexist.

Zhuang Zhong, CEO of BTC.com: I am an old miner who know bitcoin from the end of 2012. BTC.com’s focus is still the mining pool, which is the channel connecting the miner and upstream and downstream resources. This year, we will cooperate with all parties through this platform to finally serve the miners.

Lorry, IRD of AmberGroup: We are a financial service institution established in 2017 that focuses on crypto assets. We provide financial services in all fields including crypto asset transactions and asset risk management. Recently, we launched a U.S. dollar OTC platform www.amberotc.com.

Chen Lei, Founder of Bitelanjing(比特蓝鲸): Based on crypto mining, we provide full process services for the whole mining industry chain. The dump has directly affected 60000 machines in our mining farm. A small number of machines are possibly shut down, and we are actively facing it.

Q2: Is the halving bull over?

Yang Xiao, COO of pandaminer&OXBTC: The market makes people who predict the halving bull disappointed. Why did the price dump? It can only be said that there are too many factors affecting the price of bitcoin. Now, it’s time to analyze and layout the global economic situation, everyone needs to have a rational expectation.

Looking back at the two previous halving, it is found that there will be a certain range of shocks in the market before and after the halving, the so-called bull market is not over, in a year or a half it will come.

But the halving is crucial to the mining industry. If there is no sharp rise in the currency price after the halving, it is expected that 30e-40e mine machine will shut down in the whole network in May. If the price of the currency falls, the decrease in computing power may be even greater. Finally, all the miners will compete in the electricity cost and power consumption. However, it will eventually form a dynamic balance of mining revenue.

In the medium and long term, we are still optimistic. Therefore, first of all, we will focus on the layout in the wet season. Whether we can obtain the ultra-low electricity charge in the wet season will play a key role in the mining competition. Last year we added two new mining farms in Sichuan province, and this year we expect to add another 1-2 mining farms in the wet season. For users, we will launch some mining or financial products that are more suitable for low threshold entry to help everyone enjoy the dividend of mining after halving.

Zhuang Zhong, CEO of BTC.com: We used to call bitcoin as a safe haven asset as it may avoid some small crises. Today we are facing a global crisis (it fails). But the crisis will eventually fade, for now, we should ensure the stability of the current business to survive.

During the previous halving, we felt it was not so serious, because the scale of the industry was not very large at that time, and at that time. Now we need to ensure the stability of our business, reduce all aspects of expenditure, and then increase the additional revenue.

Lorry, IRD (industry research director) of AmberGroup: Not only the bull market is over, but a new bear market starts. I don’t know when it will stop. We should not worry about how to rebound, but more about keeping cash and preparing for the winter.

Chen Lei, Founder of Bitelanjing(比特蓝鲸):I don’t think the bull market has come yet, and it may be delayed for a long time. But in two or three months, there may be a pump. At present, European and American countries are very weak in response to the COVID-19 outbreak, and the judgment of the capital market on the control of the epidemic is very pessimistic. If the traditional capital market continues to dump, it will be difficult for them to allocate large funds to the crypto market.

One of the fundamental reasons for the current dump is that the traditional financial market caused by the epidemic is seriously illiquid, so large number of bitcoin is cashed out. It will also bring panic in the crypto market, causing a chain reaction.

Today, we must manage your cash flow. Second, hold your coins. Third, be prepared as there will be a chance to buy at bottom this year.

Q3: What’s your idea bout the development trend of the crypto mining industry?

Yang Xiao, COO of pandaminer&OXBTC: From the perspective of the mining industry as a whole, the global financial black swan really brings too much uncertainty as the rhythm of halving bull is disrupted. But if we look at the logic of the coin standard, the shutdown of the old machine may make the miners who are still mining gain more profits.

Compared with bitcoin, there is good news about video cards this year. For example, in the second half of the year, the DAG file size of ETH will be 4G, and 4G graphics card will be eliminated, and the graphics card above 4G will gain excess earnings. We know that some miners are gradually increasing the layout of graphics card. In addition, FPGA and IPFS mining machines are also very popular, and we are also committed to, so as to respond to diversified demands of miners.

When the price goes down, who has lower electricity price resources will have more advantages. In terms of computing power, it is necessary to select machines with lower power consumption ratio, so as to form stronger competitiveness in the dynamic competition of mining revenue, finding the right entry point of mining machine will gain double benefits of coin growth and mining machine premium in the future market. In the new era, miners need to learn to use more financial derivatives to protect their own interests.

We believe that crypto mining is still a medium and long-term thing, and we cannot face it from a short-term perspective as more patience is needed.

Q4: what do you think of the development trend of this year from the perspective of the mining pool? How to invest in small mineable coins?

Zhuang Zhong, CEO of BTC.com: Now, users have more and more requirements for the service provided by the mining pool. We must develop towards the direction of scale, normalization, and even business diversification.

So, first of all, we will polish the products to provide more key data for the miners. Second, we will support more currencies. In addition, there are many service providers upstream and downstream of the mining pool, and we may cooperate with them to provide one-stop services for the miners.

In the future, the mining pool business usually depends on a larger business, which may be a miner maker, an exchange, a financial service platform. In the future, who can help users connect more resources, solve more problems, provide more benefits, develop in a diversified and community-based direction, and help users manage their currency, will have more advantages.

Q5: Financial derivatives are the theme of 2019. What are the opportunities in 2020? What are the risks?

Lorry, IRD (industry research director) of AmberGroup: Most bitcoin has been mined out. In the next four years, if there is no way to bring bitcoin to larger market space, it’s difficult to open up a new rising space as well as the bull market in 2017.

Chen Lei, Founder of Bitelanjing(比特蓝鲸): Bitcoin is no longer much like digital gold, it is becoming more and more like a commodity, in which derivative plays a great role. The financial services needed by the mining industry are cyclical and fragmented. The traditional financial services cannot meet the needs. Although it is difficult to do, there will be opportunities. For example, cloud computing power may bring some new opportunities for financial services.

But the risk is always there. All financial derivatives and financial services are essentially leveraged. If we add leverage, we must bear the risk of deleveraging.

Lorry, IRD (industry research director) of AmberGroup: Our mortgage business has some advantages, such as affordable price. For example, we can implement some other financial programs, such as put options to hedge against the risk of dump. And we have an OTC trading platform (www.amberotc. com), which can help miners bullish or bearish with collateral.

Q6: how do you serve miners when you use financial derivatives to maintain and increase wealth?

Lorry, IRD (industry research director) of AmberGroup: Our mortgage business has some advantages, such as affordable price. For example, we can implement some other financial programs, such as put options to hedge against the risk of dump. And we have an OTC trading platform (www.amberotc. com), which can help miners bullish or bearish with collateral.

Q7: Which is more suitable for a beginner of buying cloud computing power, coins, or mining machines?

Yang Xiao, COO of pandaminer&OXBTC: This requires asset allocation and product selection according to your own situation. Mining is a low-cost way to get bitcoin, but the process is relatively long. Buying money is a direct and simple way of hoarding coins. Judging from the previous experience, miners can basically enjoy a whole bull, while coin speculation often just enjoy the head of the bull and run away.

If you are a user with a large amount of capital and seeking stable return, the mining foundation is your best option. They will customize the investment plan for you according to your investment preference and risk acceptance.

Compared with mining, cloud computing power is a more simple and convenient off-line form, which can be mined as long as online subscription. Most cloud computing users are people who can’t directly purchase mining machines and deploy them to the mining farms. If you want to gain mining profits more simply and directly and do not want to deal with the complex operation and maintenance risks, I suggest you choose cloud computing products.

Cloud computing power is the business that we will vigorously develop in 2020.

We also find that in recent years there are two types of cloud computing platforms that have been eliminated: one is the pseudo cloud computing platform, which has no solid foundation; the other is eventually destroyed for the lack of operational risk assessment. At present, the market has entered a period of rapid growth again. Investors need to be careful to distinguish.

Q8. What is the current cost of mining ? Is the so-called “mining disaster” coming?

Yang Xiao, COO of pandaminer&OXBTC: In the long run, there will be the elimination of old machines at every stage, which is a normal metabolism, just hold new models and strengthen the competitive advantage of their own computing power. In the short term, because of the current depressed market, there will be some risks in mining, but it is not necessary to prepare in advance.

Chen Lei, Founder of Bitelanjing(比特蓝鲸): It is hard to calculate the cost of coins. I can only tell you that the cost of a bitcoin is about 80% – 90% of the current price. Bitcoin prices are showing no signs of stabilizing. I think it’s a bit difficult for bitcoin to keep above $3000. We need to pay attention to the reaction of the traditional capital market. But this year there will be opportunities for mining.

Lorry, IRD (industry research director) of AmberGroup: When the mining disaster is going on, it is obvious that it is difficult for the bitcoin price to demonstrate a V-shaped reversal within one or two months.

Zhuang Zhong, CEO of BTC.com: It’s about 29000 Chinese yuan (about $4000). When it comes to S19, it may be below 20000 Chinese yuan. Now its mining disaster, “challenge” and “opportunity” coexist. We should do now is preparing for mining.

Q9: What are your suggestions for cryptocurrency participants now? What is your expectation of halving?

Yang Xiao, COO of pandaminer&OXBTC: The mining industry has gone through the era of absolute prosperity, now “challenge” and “opportunity” coexist.

Zhuang Zhong, CEO of BTC.com: Any investment needs to control its own leverage risk. We need to be aware of the risks and hedge the mining profits. For investors, I think it’s still necessary to try to improve the cognition.

Please sign in first