Liquidity Mining in Chinese Traditional Crypto Miners’ Eyes
Liquidity Mining has evolved into a low rumble as more and more people get interested, including Chinese crypto players.
But what do traditional crypto miners in China think of liquidity mining?
Capital is not safe in liquidity mining
Traditional POW miners focus on machine, coin price, and electricity charge. At present, there are still some technical barriers for liquidity mining, and its economic model has gone beyond the understanding of many traditional miners.
Another factor is that the mining industry has encountered too many mining disasters, and their income cycle has been lengthened. Therefore, miners are very concerned about the safety of capital, and it is not easy for them to make decisions to take a risk.
“This may be a good way for individual investors to make a fortune with low cost. But I will keep my coins in my wallet and I won’t participate. “
Said Yao Bingbing a Chinese crypto miner. Now many wallets have also launched DeFi financial management, which is actually a liquidity mining of users’ convenience, which provides a channel for miners to participate. However, this mode does not help deepen miners’ understanding of liquidity mining and DeFi.
Many people think that the liquidity mining originated from Ethereum has finally evolved into an amusement park for capital tycoons. Although traditional miners hold a large amount of cryptocurrency, most of them do not participate in it.
Compared with liquidity mining, miners are more concerned about the fact that the rainy season is coming to an end. Chinese crypto miners make a round trip (south-north) to pursue cheap electricity every year.
S9 miner still has about 20-30E market today, so S9 will be retired in dry season. However, from December to January of the following year, there will be new mining machines launched. Some miners predict that the network hashrate of bitcoin will be reduced by at least 20% – 30%.
However, it’s clear is that bitcoin mining may only be conducted for half a year in the future. In other words, the mainstream mining machines with high computing power are likely to mine in mining farms in Yunnan, Sichuan province and thermal power mining farms in Northwest China for half a year. This seasonal migration is also the normal under the high competition to some extent.