Under the nib of the moment
Xinjiang Shihezi: peak period, nearly 500 thousand sets of machine roar here. 7*24 hours of operation, these mills monthly consumption of 500 million kwh, equivalent to 100 million households a day of total energy consumption.
Before the ore miners community ant S9 popular models, a year ago in the market speculation in the highest to 3 in Taiwan, in the currency of successive decline in second-hand price, minimum sale price is only 600 yuan.
Some of the miners in Xinjiang in order to get the goods, to sell their car to send money, even to the housing, as long as they believe in “machine to hand, spend all earn back”.
Tencent news “author Liu Peng” periscope
150 kilometers west of Urumqi, Shihezi, Gobi on the wind. At the end of November, just under the snow, the temperature suddenly dropped to 15 degrees below zero.
Miner Liu Haiyang was busy workers hired temporary command, just the arrival of the 10 thousand bitcoin mining machine case, and then transported to the newly expanded good factory. The distant chimney ejects smoke, sunset through the dusty air, the metal shell on yellow light silver mine.
Bitcoin, since 2008 was “Nakamoto” invention, according to the model, computing ability can use the chip in the bitcoin system, every ten minutes from the block (block) in the ongoing “Hashi collision”, to win the right to obtain the reward system of accounting, bitcoin. The boring and repetitive, known as “mining”.
In the bitcoin operation in the first few years, a notebook computer can play a role. But China miners will approach, mining made a big business, they rely on the design and manufacture of professional Chinese machine, and the cost of electricity in Xinjiang, Sichuan and Inner Mongolia, cheap, monopoly of the most upstream industry chain: bitcoin mining.
Liu Haiyang is one of the typical Chinese miners. More than a year ago, his name of “cloud computing” with the Shihezi electric power company 0.28 yuan per kWh of electricity price concessions, rent a ceramic processing enterprises of the plant, and be transformed into Taiwan machine can accommodate 40 thousand seats. In order to more stable feeder power supply, Liu Haiyang even took about twenty million, built two substation transformer.
Behind the high investment, high return potential is the temptation to bring. In Shihezi, such as the Liu Haiyang mine, there are dozens of large and small, in order to avoid attention, they hide in cloud computing, technology companies, as the sign of the factory. According to incomplete estimates, during the peak period, nearly 500 thousand sets of machine roar here. 7*24 hours of operation, these mills monthly consumption of 500 million kwh, equivalent to 100 million households a day of total energy consumption.
And now, they are threatened by growing crises.
From the beginning of November, bitcoin prices show free fall down from a high of 45000 yuan, the minimum fell to 25200 yuan, the rate is as high as 40%.
The successive decline, bitcoin prices have more than one machine breakdown cost, namely the mining income is insufficient to pay the fee and management fee. According to one of the largest mineral pool pond data, the beginning of the 20 thousand yuan a what M3 machine had arrived off the price.
Some small and medium minitype mines, which have been unable to maintain, have been unable to keep the mine machine secondhand. In the miner group, the most popular type of mine machine model ant S9, a year ago in the market the highest to 3 in case of the case, in the currency price even down, the second-hand transfer price is only 600 yuan.
Confound, with lower price and better cost of mining, open the “land annexation” movement, was placed in the new second-hand vehicle transport mine, plugged in and continue to operate.
Through the last cycle and become the “mine hegemony” on the bit continent and jiaxan, it is also beginning to look for suitable mines and cheap electricity prices everywhere in Xinjiang. “Bull market mining machine, bear market digging” are their principles.
With electricity migration, dislocation competition, use of financial instruments hedging… Between the shift and transfer, a war has been struck by the elimination of high electricity prices and the elimination of small mines in large mines by low electricity prices.
But even if the winner of the merger war can not predict his own fate, he has to watch the spring in the long winter.
The miners were born because of the tide of the times, and as the tide of the times faded. The Tencent’s “potential” visited a number of mines in Xinjiang to record all this.
A miner from 30 thousand to 600
In the declining price of the coin, the old Luo of 2000 Avalon A741 mines is the first “power out”.
Unlike bitcoin’s deep technology, the mining business model is simple and rough: the money that has been dug is left after the money, electricity and site fees are paid, so it can be guaranteed to run. Once the currency price fell, the money dug was not enough to cover the cost of electricity coverage. In order to stop the loss in time, the miners had to remove the power from the roar and temporarily shut down the machine.
Electricity is the lifeline of the mine. Its price and stability determine the profit level of the mine.
In general, the electricity price that the small mines can talk about is much higher than that of the large mines. As the largest expenditure item in the mine, the electricity price at the end of the cost means that the competitiveness of the small mines is far weaker than the large mine.
But during this period of time to dig a total of 25 coins, in accordance with the price, income of about 500000, but at the same tariff is 600 thousand, “the same machine, the mines may run flat, but here is equivalent to the Yu Yue dig more pay, just off the phone.”
The panic began to spread. In November 25th, a big shade line was highlighted again, the price of bitcoin is approaching 25000, which is also the most popular of the miners’ group of ant S9 model mining machine.
More small miners joined the ranks of the clearing. But the situation was worse than they imagined. Four or five days ago, the second hand S9 market quoted prices around 1200. As the price of the currency approached the shutdown price, the price of S9 was directly cut to 600.
“This is a machine for 30 thousand dollars a year ago!” A small miner, who was forced to leave the field, was excited. Like a Lamb astray, nodes in the winter comes, the slightest can not control their own destiny.
An old miner told the Tencent “periscope”, from the time point of view, in November last year after the admission of the miners, almost could not escape the fate of lamb. One of the most miserable, is in January 2018 the wave of admission.
At that time, the price of bitcoin has reached a peak of 120 thousand yuan in a year long rush. It is able to “produce” the bitcoin miner, which is regarded as the golden egg of the chicken. The price of the factory is still two or three times more than that.
That was the day of the revelers of the miners. Some of the miners in Xinjiang in order to get the goods, to sell their car to send money, even to the housing, as long as they believe in “machine to hand, spend all earn back”.
In the past 10 months, they didn’t even have the money to buy the mine. Second hand miner prices fell again, “the equivalent of fixed assets lost 90%, can say no blood,” the old miners said.
Migration to low price areas
In winter, the jungle out coins ring. After the liquidation of small mines, a large mine in the prey. Miners who have been sold by small miners to sell the mine, into large mines, power supply, continue to roar.
Liu Haiyang decided that it was his chance. The price of 0.28 yuan, and the Treasury 40000 seats, let him in this round of reshuffle is dominant in war fighting force. “A few hundred dollars to the resumption of the S9, or if the currency price now, can a month back to the.” He paused and added: “anyway, currently on the market S9 you don’t dig, someone will come to dig”.
To stop the medium-sized mines, also looking for a way out. To find cheaper electricity, they look at the wider Xinjiang border.
Near the border, the city of Huo Cheng and Yining is the lowest price of electricity known in the miner circle. However, because Yining has suffered suddenly check the enterprise nature of electricity, many mines are power penalties, and boarded the miners “blacklist”. The miners also use “JQK” to describe, “with low price hook your past, then around you, the last K of you”.
However, forged by electrical properties have occurred in the past. Some mines anchored in local energy enterprises, apply to thermal electricity on behalf of, enjoy state subsidies after the price of only 1 cents. But such operations are only suitable for higher currency prices, and they have earned money from the money they have invested before they are checked for electricity.
There is also a look at a similar country. Not far from Xinjiang, Uzbekistan, industrial electricity price is only 23 Fen yuan, and the price is also low in Russia, about 25 fen.
But correspondingly, they need to take risks in different system and culture, and the possible security risks. The miners will be the site chosen in the sparsely populated area of old industrial factory building, the results just after a few days he was trampled the masked robbery, just installed the machine being plundered.
Infrastructure is another important reason for restricting the mine out. For mine people in the world’s largest manufacturer of machine bit, “Tencent” in the summary of the periscope visited more than 10 countries, on power generation and infrastructure, is still the best. “Especially in Xinjiang, high pressure ring, 750 thousand volt particularly stable, and rich in coal resources, power generation is also very abundant, is very suitable for mining.”
It is this reason that bit, currently in Xinjiang still has a 50 thousand Taiwan and its own mines, monthly pay tens of millions of dollars of local electricity.
“Periscope” Tencent was informed that, in addition to its own field, recently in Xinjiang, a bit overweight is put into force. 11 bit, just the end of the month, 50 thousand sets of single scale mill managed in a quarry near Shihezi. Another domestic vehicle manufacturers Jia Nan Yun Chi also in the area of order 10 thousand.
Bear survival skills
Individual miners qingtui, large capital admission, with more cash flow support, reduce the expected return, long investment cycle.
Compared with a month ago, bitcoin whole network is down 14.8%, this also means that the difficulty of mining fell 14.8%. Continuous miner is retail departure, bring reshuffle is force, a new round of melee, the miners looking for their survival strategy.
“Last year to enter the industry feel earn good money, this feeling is dead too fast”, its founder Jin Xin Mamba said, “to live in the bear market, there must be a suitable cost, and survival skills”.
Before entering the mine circle, Jin Xin serial entrepreneur and a number of projects, but because of the negligence of the failure of cash flow. In October 2017 he began to study the mining, and locked eyes is relatively small in the market on the card machine. Different from the mainland and Chia Nan Yun Chi bit production ASIC machine, machine graphics corresponding to the ETH (Ethernet Square), XMR (Monroe currency) and Zcash PoS algorithm using digital currency. The etheric Fang into the global ICO activity raised money, 2018 year 1 month peak of about 1.1 million / month.
After a couple of months, he said excitedly to the Tencent “periscope” to visit this month, “money, than I earn more business for 3 years.”
But profits only lasted two months, into 2018, with the overall digital currency down dip on cash flow sensitive he cut off his own field of ASIC bitcoin mining machine, all input card machine.
Compared with the ASIC machine, although the maintenance cost is high, but the card machine power is a bit low, global digital currency anchor is Ethernet square stress distribution is more dispersed. More critical is the core component of its graphics – graphics, remove mining, can remove, return to the gaming market. For playing games in Internet cafes game player who, with new graphics dug coal not what difference.
“There is a big difference in the card machine between miners and miners are in accordance with the current game market price to give its currency pricing, while in the game market, the core components of the machine card value is constant.”
Accordingly, Jin Xin developed his bear survival strategy: miners from the liquidation leave close to second-hand card machine, to cover the cost of a slight surplus and the moment in the currency price, plug in the power expansion of work force, once the currency price fell to the cost line, then sell off card, if the currency prices rose to bull market. Take card to miners.
With the CBBC cycle, graphics transfer between miners and game player. Look, this is a near the pink of perfection strategy.
“But if the currency price has been falling?” “Periscope” asked.
“It had to recognize.” Jin Xin’s answer is smooth and clean.
At least for now, Jin Xin’s strategy is effective operation. He also studied the field of energy consumption is down 10%, is a part of force to undertake business operations of artificial intelligence orders.
At the end of November, another center of domestic mines in Sichuan ushered in the dry season, which has brought a large number of mobile phone two to him. His team is busy testing the shelves, and access to power.
Let him proud is that with the continuous mill shelves, mine now has 1% square network is Ethernet, “equivalent to get a stake in the etheric fang.”
To dig coins and short currency price
Bitcoin on a bear market lasted for two years. In a bitter dig, Tun coins do not sell the miners have a surprising return in subsequent bitcoin bull market, the industry has become legendary among people.
In the past 4 years, was a round of the coin Tun miners look up to as the standard rules, this round of the bear market is no longer applicable. The miners are facing a more complex market circulation: bitcoin about 4000000 more, the market value is the circulation of tens of thousands of yuan, to cash exchange many thousands of.
The new generation of miners rarely emerged like bamboo shoots after a spring rain Tun currency, exchange, to provide them with financial instruments more and more, learn to hedging lock ahead of earnings, is one of the essential skills they live in a bear market. Bitcoin factory production mode, upgrade to the financial model.
Hedging, in simple terms, in the spot market and futures market at the same time the same amount but in the opposite direction trading activities. The use of futures and spot prices with up and down the establishment of hedging principle, use futures to fill the spot the loss of profit.
For example, next month I output 30 coins, but a month after the currency price in accordance with the trend is likely to continue to fall 10%, then I will exchange in the air under a single, sold at current prices, a month after the delivery of 30 yuan.” Jin Xin explained, so you can lock the currency income, and not to bear greater losses in the stock market fell.
But the miners groups frequently hedging operations, let them consciously or not, has become the biggest force in short bitcoin.
“Everyone in the end is short, and we all want to protect themselves to currency prices continue to decline, but prices fell to mine operating currency.” Jin Xin said, “a bit like Arano Ki, not short to be eliminated, we are short of last heroic death!”
The bite of financial instruments to hedge the mission from the open mouth, bitcoin futures, but live into speculation.
In each game, every step carefully, to see the spring.
Everything is not over yet
In November 28th, falling bitcoin temporarily stopped declining, the day rose 11% during the return of more than 30 thousand.
Jia Nan Yun Chi even as a pretext, immediately announced several new mills, discounts.
But the trend is unstoppable, the last radiance of the setting sun a day later, currency price turned to continue down.
To winter. Liu Haiyang’s ten thousand mills has been plugged in, Jin Xin also received a number of second-hand goods, Luo in liquidation and migration between hesitate.
There are hesitant CHINT dealer in Shihezi. A boy came to the door, open to the 50 thousand power switch, big list suddenly fell on his head, so he did not dare to believe.
The 50 thousand switch is for 50 thousand bit, just a single machine hosting. Winter to spring and winter, the bull market bear market selling machine, mining is past experience to tell them the truth.
It is also a bear market in the last bit from the mainland invented the world’s first bitcoin miner ASIC Chia Nan Yun Zhi took the hands of a mine in Inner Mongolia Dalate county. Is the shuffle, the mainland has become the rise of a bit.
This story inspired the winter miners. Since December 2nd, Shihezi has third winter snow. 18 degrees below zero, the wind blows, the miners were dormant, waiting for the spring. Hundreds of thousands of mine still running, screaming, carrying their hope, never sleep.
From the Tencent of science and technology