Source: reverse shorting research center source financial knowledge in the past decade, too many legends have been born in cryptocurrency mining. For example, pumpkin Zhang, the founder of China Mining’s first Jianan technology, has built the world’s first bitcoin FPGA miner and the first ASIC miner. For example, Wu Jihan and Yang Zuoxing, the former is not only the first to translate the bitcoin white paper, but also founded the giant mining machinery enterprise bitcontinental. The latter set up the Shenma mining machine which is enough to compete for the first place. For example, Shenyu, pan Zhibiao and Xu Xin created the world’s first and second bitcoin ore pools, fish ponds and coin printing pools, while the latter created the largest ore pool in Ethereum, spark mine. In Sichuan, Xinjiang and Inner Mongolia, a group of “nameless” miners control more than half of the world’s bitcoin mines. Many big men active in the cryptocurrency circle also come from mining industry. Jiang Zhuoer, Zhu FA, Yang haipo, solemnity By 2020, these pioneers have built a brilliant history of bitcoin in China. It reminds me of Zweig’s book when the stars shine. From mining machine iteration to bitcoin bifurcation, from bitcoin network updating to bitcoin production halving, Chinese miners have been standing in the C position of the global cryptocurrency main stage. However, 2020 is a watershed. These top figures of China’s mining industry seem to be withdrawing from the speech stage of cryptocurrency one by one. A series of new figures, such as futures giant, investment tycoon and defi God, have become the vane of cryptocurrency world and lead the global discourse power. Does this mean that mining is becoming less and less important? Marginalized? I prefer to interpret that the era of cryptocurrency has changed, cryptocurrency has entered a new era, and mining industry has entered a new stage of development. This is a mining reporter’s observation in 2020. It is very personal. Do you agree? At the turn of the times, bitcoin miners “retreat behind the scenes” these two days to plan for mining coverage in 2021, and suddenly feel that the mining circle in 2021 may be extremely boring. Without halving, forking, and frequent updates of bitcoin’s underlying network, what opportunities do bitcoin miners have to stand on the stage of history? It seems that the only required action in 2021 is the transition between the wet season and the dry season, but this is the same as the typhoon report. Suddenly, there is a feeling that mining is going to be marginalized, at least far away from the center of discourse. Why? I think of two reasons. 1. Bitcoin is becoming more and more stable, and mining has become the guardian of the value network. In the next four years, it can be predicted that bitcoin will not be halved, and it is unlikely that there will be any bifurcation, and the bitcoin infrastructure network will become more stable. Lightning network? Although it has been under development, there is almost no sound in the whole 2020 lightning network. It can be said that with layer 2 of Ethereum, the value of lightning network is no longer what it used to be. Bearers can directly say: it is meaningless. The only big upgrade may be taproot, which improves the privacy, scalability, flexibility and speed of bitcoin networks. And it will bring about a soft bifurcation, but it really doesn’t attract much attention. This can be compared with Ethereum. On the one hand, in 2021, Ethereum will gradually switch from POW to POS, the underlying code will continue to be updated, and the community will continue to split, so hard bifurcation is inevitable. On the other hand, with the rapid development of defi, liquidity mining is becoming more and more intense. It can be said that Ethereum will lead the whole 2021 without any suspense. In 2021, maybe bitcoin will become a configurable asset for financial institutions, where there are countless beautiful stories, but that is not the stage for miners. Miners are the maintainers of bitcoin network, and without the suspense and story of the underlying network new developments, there will be no stage for mining practitioners to perform. 2. Embrace the new infrastructure, bitcoin mining transformation, will it “de coin circle”? In July 2020, I went to Chengdu, Sichuan Province, and saw the largest hydropower mine in Sichuan Province. The total investment reached 180 million yuan, the construction land was 52.8 mu, and 15 machine rooms were planned. It is estimated that the load of 300000 kilowatts can be realized. People standing under the machine room, the shock can not be described in words. Take the largest machine room as an example, it is about 5-6 floors high, with a length of more than 100 meters. The whole wall is a round fan, and the hum is deafening. “I just came to see what is behind bitcoin. I saw it today, and I chose to believe it,” said a real estate girl in the same company I also believe that if you’ve seen the mines and the machines flashing a little green all the time, you’ll believe that behind the virtual encryption world is a huge, tangible industry. Some people are responsible for making the latest and strongest mining machines, some are responsible for building huge mines, some are responsible for operating them, and some people will repair them when the machines are broken. Since 2020, the water and electricity consumption Park policy is gradually implemented in Ya’an, Ganzi, Leshan and other places, which means that the policy is gradually relaxed, which may be the best news for mining industry. If you have an impression of mining activities in 2020, you will find that mining people like to talk about new infrastructure. Zhu FA, the co-founder of India bit, said that the current mining industry is not compliant, but not all links are not. The biggest impact of the new infrastructure on the mining industry is to introduce the capital of the new infrastructure to the mining industry on the premise of compliance. Compliance is a major trend in the development of mining industry. All links from power consumption and mine construction to fire protection, environmental protection, land and tax payment will be in compliance. Today, many bitcoin mines are seeking financing, and even some are seeking to be listed. It was totally unthinkable before. Therefore, rather than think of it as a bitcoin factory, think of it as a computing power center in the blockchain world. This is a vast blue ocean market. Although mining practitioners can’t erase the bitcoin label, the industry is becoming more and more like a traditional industry. It may be the general mentality of mining practitioners to remove the currency circle, dig and make money in a stable way, and make a lot of money in silence. Do they need to speak in public? unwanted. This is my biggest feeling in 2020. In 2021, there are two things to look forward to in mining industry. 1. Are mining giants back? In 2020, the biggest focus of mining industry is the founder dispute of bit continent. As a result, Wu Jihan stepped out of the stage. Many people last saw him in April 2020, at the 421 Fengshui Festival hosted by bit deer. Wu said at that time that he hoped that the market would give bit mainland another opportunity. At the end of the year, the dispute finally came to an end. It was rumored that bit mainland began to split up, bit mainland returned to zhanke group, and Wu Jihan left with btc.com, bit deer and overseas mining business. On the other side, after Yang Zuoxing, Shenma mining machinery, was involved in a lawsuit, COO Chen Jianbing stood in front of the stage. If you want to see Yang Zuoxing at the computing power summit in Chengdu in 2019, he fell out of his gold sentence, which frequently attracted warm applause from the miners. Shenma mining machinery in 2020 is also not in the halo, but with the gradual development of overseas markets, the shipment volume in 2020 has been comparable to that of Biti mainland. Looking at Jianan technology, after its listing, the company also had a farce of “seizing the official seal”. Zhang Nangeng continued to keep a low profile, while Kong Jianping, who was good at handling media business, left to start his own business. With the advent of 2021, bitcoin mining machines are hard to find, and futures mining machines have been sold to the middle of the year. What we can expect is that, as the turmoil in their respective companies subsides, opinion leaders may come back again. At that time, we don’t know whether they can make a voice from the mining industry. 2. How can China’s mining industry keep the country in the face of the rise of overseas forces? In September 2020, staff from enegix, a head mine in Kazakhstan, found Babbitt through Twitter and said whether they could introduce the mining situation in Kazakhstan to Chinese miners. Therefore, through an exclusive interview, we uncovered the mining mystery of this Central Asian country. Few people know that Kazakhstan’s bitcoin hash rate accounts for 6.17% of the world’s, making it the fourth largest in the world, after China, the United States and Russia. Specifically, in the seven months from September 2019 to April 2020, Kazakhstan’s bitcoin computing power increased by 334%, leading the world. In 2020, a very big feeling is that Chinese miners will go to sea and overseas enterprises will enter the Mining Bureau. For example, at a computing power conference in Chengdu, Sully Yu of Shenma mining machinery told me that the overseas orders of Shenma Mining Machinery Co., Ltd., including North America and Europe, accounted for about 40%. Recently, there have been more such news, including NASDAQ listed companies No. 9 City, marathon, core scientific Enterprises that have heard of it or have not heard of it are laying out mines and buying mining machines. Before that, the buyers of mining machinery were small and medium-sized miners, and everyone wanted to return to the current quickly, keen to calculate the return cycle. Today, the mining machinery return cycle has been greatly lengthened. With large capital entering the board, the annualized return of capital means that the basis of calculation has changed. Capital attaches great importance to long-term mining, and the future is a large-scale, intensive and refined mining world, so it is unrealistic to expect a rapid return to the capital. From crypto finance to crypto mining, the United States has begun to rush ahead. Today’s China is still the absolute overlord of bitcoin mining. Will this trend change in 2021? What interesting things will happen is worth looking forward to.