Bitcoin still has no bottom and there are only three types of mines in the future.

Falling again,

Bitcoin is not just falling on the floor.

It seems that there are “18 layers of hell”.

According to the third party trading platform data, as of November 27th, the 24 – hour declines of the currency representative of the virtual currency fell to 6.17%, and fell to $3793.55. Compared with the most high price of bitcoin at the end of 2017, it fell by more than 80%, compared with $19299.

Most experts believe that bitcoin still has no bottom. Stephen Innes, Asia Pacific Trading director at Oanda Corp, thinks the price of bitcoin will fluctuate between $3500 and $6500, and may fall to $2500 by the end of next month. The downside pressure of the “collapse” of the virtual currency detonated the heavy reaction of the mining industry, and the news came from the news that the mining enterprises were shut down, the mines were shut down and the miners were repaid. And the mining machine manufacturers in the upstream of the mining industry also have a sights of winter, the mining machine is unsalable, the profit is shrinking, and the IPO is suspended.

Virtual currency is frequently “dive”

After months of cross, the bitcoin has been steeped down from November. The trading platform data showed that the price of bitcoin fell more than 25% in the first week of November, the worst week since 2018. In November 25th, its price was once again falling below $3500, the lowest since August 2017.

And under the influence of bitcoin down pressure, other mainstream virtual currencies are also difficult to escape the fate of the price “diving”. The dummy currencies, such as the Swiss currency and the ether, have also fallen by more than 25%. Statistics show that the global market value of virtual currency is around 154 billion US dollars, shrinking by nearly 80% compared with the market value of $about 800000000000 at the beginning of this year.

The direct fuse of the price plunge of virtual money includes many factors. One is related to the recent hawkish remarks by Lagarde, President of the International Monetary Fund, IMF. In his recent speech at the Singapore Financial Science and technology festival, Mr. Lagarde pointed out that the possibility of issuing digital currencies should be considered by the central bank, rather than a multitudinous virtual currency that could not be duplicated. This also leads to strong regulation of the token and some virtual currencies in the United States and China. The two is related to the market panic that has been caused by the hard split between BCH (bitcoin cash). In the BCH branching process, the sale of BTC from both sides of the war has led to a plunge in its price, causing panic in the whole virtual currency market. Market pessimism is triggered by the loss of funds from the BCH bifurcations and force wars and the skepticism of the centering application. Three is the failure of the OKcoin futures index to trigger a fund burst. Four is an important reason for the slump, in 2017 the bull market had overestimated and accumulated a bubble in the virtual currency and block chain, and market confidence began to collapse as the 2018 bubble burst.

Therefore, the price of virtual currency plunged “three feet cold”.

The mining industry faces a huge change in shuffling

With the price of virtual currency plunged, the whole mining industry has quickly entered the cold winter, and it is difficult to dig the mining industry. Mining enterprises bankruptcy, miners stop work, miners stop and other news flooded the market, mining machine is on sale is becoming a hot topic in the industry. Today, the price of S9 new miner is only 3000 yuan, and the price of the mining machine is even more than 20 thousand yuan when the bull market is in the market.

The logic behind the chain reaction of industry lies in the decline in the income of virtual money produced by mining, which leads to the difficulty of covering the cost of investment. This has caused more and more enterprises to go bankrupt. Recently, Djiza Watt, the largest single – body in the United States and the world, applied for bankruptcy protection in the East District bankruptcy court in Washington state.

In the global digital money miner supply, the three Chinese companies, such as bit continent, jiaxan and hundreds of millions of technology, occupy the top three, and monopolize more than 90% of the market. However, the days of the three big bitcoin mining companies are not too good. From the three quarter, revenue and net profit declined gradually. In November 15th, the application of Hongkong IPO, one of the continental mining giants, was formally invalid. The other two giants, the IPO, can not be completed this year. While bit continent is still receiving inquiries from the Hong Kong exchange and the SFC, the market has questioned its performance and future development many times, including Tencent, Softbank, DST Global and other institutions that deny the investment in the bit continent. The failure of IPO for the whole mining industry is undoubtedly a frost.

In the downstream side, two other Taiwan’s video cards and motherboard manufacturers, MSI and gigabyte, said that as the price of the virtual currency fell and the attitude of the regulatory units to the virtual currency became more and more strict, the business opportunities brought by the mining industry had been a lot of fever from the third quarter.

For many years, the virtual currency circle has formed an industrial chain. It is complete, precise and almost full. In a sense, every ring on the chain is proud and damaged.

As of November 2, 2018, the total market value of the global digital currency was $20 billion 560 million, which has fallen to 75.2% from the highest point at the beginning of the year.

Machine operators seeking to break through

Since the release of “Bitcoin: A Peer-to-Peer Electronic hearing Cash System” in 2008, bitcoin has been born for 10 years, and the coexistence of bitcoin dig mining industry has existed for nearly 10 years. The mining industry from the earliest computer CPU to GPU to mining special chip, mining sites from home to small workshops to the professional field, change radically the price of bitcoin, the miners entering the departure, the machine to open the stop, the miners enjoying huge gains brought by mining but also bear a great risk.

Now under the nest, eggs will be over. Steady cash flow, active transformation, self rescue, has been the lifeline of the major suppliers in the mine supply chain. The manufacturers are constantly adjusting their strategy and product layout, such as bit continent, jiaxan, Chinese science and technology, NVIDIA, TLC and so on.

Experts believe that there are only three types of mines in the future. The first category is backed by a miner manufacturer, such as the bit continent. In a bear market, they can take the miner at the lowest cost and have a unique advantage. The second kind, the gold owner is the grey capital. These funds are often less than the rate of return. When the bear market, the capital would prefer to lose some; when the bull market, may be able to make a few times, so the comparison can resist the disaster. The third type is a mining field using an innovative model. Traditional mining requires a person to buy a mine, find a place for cheap electricity, build a mine, or give a mine to a small and medium-sized mine, and the user will pay for electricity, maintenance and subsequent management. However, this does not work, and now the new model is a model of cloud mining with force leasing. Users do not need to consider the electricity price, site selection and other problems, through the APP, you can directly rent the bitcoin machine calculation force.

However, there are also experts optimistic that the collapse of the virtual loan currency is not sustainable, the panic is also irrational, the market will restore reason after the end of the war. As the US SEC regulatory policy is becoming more and more clear, the possibility of the approval of the bitcoin ETF is increasing, and the STO test will also bring confidence to the market, and the bitcoin will rebound.

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