In 2018, the regulators cracked down on bitcoin more severely, causing Bitcoin prices to turn into a downturn. It is reported that regulation and electricity price are the two elements of bitcoin mining. The computing power in the world is still increasing, but bitcoin is not much left. Many domestic bitcoin mining companies are now seeking to make their way abroad.
In recent years, Fujian young businessman Li Jiacheng has been doing business in Myanmar and Africa. As bitcoin prices skyrocketed, a new project entered his field of vision: Myanmar has a hydropower station near the Yunnan border, has cheap electricity, and can engage in bitcoin mining.
Li Jiacheng told reporters that one of his important work in the near future is to contact Bitcoin mines across China. He hopes to cooperate with them and dig bitcoin in Myanmar. There is no supervision here. The electricity price is only about three cents. The mining plant can be built directly. Next to the hydroelectric power station.
The first financial interview was informed that several mines in Inner Mongolia had been blacked out a week ago, indicating that domestic regulation of bitcoin mining is tightening. The situation forced the mine owners to find another way out. Malaysia, Kyrgyzstan, Belarus and even Canada and Iceland were active in the presence of Chinese mine owners.
Bitcoin mining requires a large amount of electricity to support computer operations, while China currently produces 70% to 80% of the world's mining machines and has the most computing power (mining capacity) in the world. Where is the electricity price cheap, where bitcoin mining capacity flows.
Regulating extrusion capacity“My mine has been out of power for five or six days.†A large mine owner in Inner Mongolia who asked not to be named told reporters.
The person in charge forwarded to the reporter a red-headed document of the local committee, which was dated December 28, 2017. The document required adjustments to the multilateral power transactions in the jurisdiction to re-identify cloud computing and big data users. Suspension of power trading before completion. On the list of companies attached to the document, mining giants such as “Bit Continental†and “Dimension Valley†are listed. The mine owners in Sichuan and Shandong, all of whom were interviewed by the reporter, said that they are still operating normally.
Since 2017, China’s regulation of Bitcoin has become more and more tight, from the prohibition of bitcoin network transactions to the mining field. At the beginning of 2018, a paper led by the Internet Finance Risk Special Rehabilitation Office Leading Group (hereinafter referred to as “Mutual Gold Remediation Officeâ€) was issued to the financial offices of various places. In this document, it is mentioned that it is necessary to actively guide enterprises within the jurisdiction to withdraw from the “mining†business, and require local statistics to engage in “mining†enterprises, including the basic situation of the enterprise, revenue, and enjoyment of preferential conditions. Initially, the regulation of Bitcoin mines in some provinces began to tighten.
The Bitcoin mine had solved the problem of oversupply of electricity in Sichuan, Yunnan and other provinces (upper season) to a certain extent. At that time, it became an ideal investment attraction for power surplus areas. Large-scale mine projects mostly landed under the name of “cloud computing centerâ€.
"The country basically can't go on. At present, there are two directions: the expedient is to find a local state-owned enterprise to rely on the shell, and in addition to go abroad." A mine owner in Chengdu told reporters.
Mine chasing electricity priceRegulation and electricity prices are the two core elements of the Bitcoin mining industry.
Because bitcoin's cryptosystem is extremely complex, the power consumption required to "dig" a bitcoin is amazing, and power consumption becomes the biggest cost of mining bitcoin. According to statistics, as of the end of 2017, the global demand for bitcoin mining power increased to 20.5 TWh, which is equivalent to 0.13% of the total global electricity consumption. Although it may not sound like a lot, this figure has exceeded the annual electricity consumption of 159 countries.
China's domestic bitcoin miners hold most of Bitcoin's mining power. Today, large mines are looking for cheap power resources around the world. Following the ICO “going out†tide launched in 2017 under the supervision of heavy punches, another round of bitcoin mining companies began to prepare for “going out to seaâ€.
A Wuhan mine operator told reporters that the company has found a backup power source in Malaysia. If the supervision of domestic mines is tightened, the production capacity can be transferred.
A mine operator registered in Anhui told the 1°C reporter that they had already discussed cooperation with the national grid in Kyrgyzstan and the mine was under construction.
"The mining machine is sent to Xinjiang in a unified manner. We will send the logistics company to Kyrgyzstan to go to the railway. The electricity price is very cheap, only three hairs (one degree). Domestic, unless there is a large mine, where can you find such a cheap one? Electricity mining data can be seen in real time, anyway, you don't have to worry about it, you can do it for you," the person said.
Another mine operator said that they have finalized the resources of Belarus. "The current electricity price of the Belarusian government is 0.6 yuan. The price we can negotiate with the government is about 0.36 yuan. Belarus is a government that recognizes the support and recognition of cryptocurrency and ICO mines. The local government promises to be exempted for 5 years. After we build the factory, we can In the Belarusian government, the procedures for Chinese companies to enter Belarus are handled." The operator’s introduction to the reporter said.
According to media reports, the head of Bitmain, China's largest bitcoin mine, said that the company is setting up a regional headquarters in Singapore and conducting mining operations in the US and Canada. In addition, the third largest mine, Leipzig (BTC.Top), is opening a branch in Canada, while the fourth-ranked microbit (ViaBTC) has also established operations in Iceland and the United States.
Final fightSince the beginning of 2018, bitcoin prices have turned into a downturn. According to the trading platform Bitstamp, Bitcoin fell more than 7% in intraday on February 1. In January this year, the price of Bitcoin fell by 23.6%, and the total market value evaporated by $60 billion. Is mining still profitable?
This depends not only on the price of bitcoin, but also on the strength of the arms race. After all, the computing power of the world is still increasing frantically, but Bitcoin is not much left.
On January 3, 2018, the birth of Bitcoin was officially nine years old. Nine years ago, on January 3, 2009, the "genesis block" was born in the Bitcoin blockchain network, which was called "block #0", block 0.
Nine years later, Bitcoin founder Satoshi Nakamoto initially set a total of 21 million bitcoins in the 2008 white paper, and has just dug 80%. More than 16.8 million bitcoins have been dug up by Bitcoin “miners†around the world and entered the market.
Now, the world's computing power is making the final competition, grabbing the last 20%, or 4.2 million bitcoins.
The difficulty of mining will increase. In 2009, the “Creation Block†rewarded the miners with 50 bitcoins; today, the miners who dig out new blocks have fallen to 12.5 bitcoins. As more and more people start mining, it is more and more difficult to get Bitcoin. In the Bitcoin network protocol designed by Satoshi Satoshi, it is required to reduce the “mining†reward by half for each “excavation†of 210,000 blocks (one percent of the total supply). According to the current global computing power, it is estimated that by June 2020, this “waist†will occur again, and the reward for each block will be reduced to 6.25 bitcoins.
Competition can only get more and more hot. In the place where bitcoin mining machines such as Shenzhen Huaqiang North are produced, buyers from all over the world are still active, and the mining machines are almost in short supply, which means that the world's computing power is still increasing. For the miners, this may be the last feast of Bitcoin mining, but it might be a Waterloo.
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