Have to dig the market turning point? Bit, 200 thousand game machine

This article from the Coindesk, the original author: Wolfie Zhao

The daily planet Odaily translator | Moni

 Have to dig the market turning point? Bit, 200 thousand game machine

If the bit, who are most familiar with the mining plan, probably to the number of those the southwestern province of domestic mine operators of the crypto currency.

According to the local mine operators revealed that the bit continent has deployed about 200 thousand sets of equipment in the local mining, hydroelectric power generation capacity utilization in excess of hope brings low electricity to gain competitive advantage.

Relevant sources said, although the southwest China (including Sichuan and Yunnan) during the rainy season to come in until May, but has reached an agreement with the bit, some mines to deploy its mining equipment, in order to plan ahead, prepare in advance. Although it is unclear what will prove, bit mining workload (PoW) encryption currency, but this time they will deploy some of the latest products of mining machine, including AntMiner S11 and AntMiner S15, as well as some older machine models (such as AntMiner S9i/j). According to the online store, bit tag information, including S11, S15 and T15, the latest version of the machine is in “sold out”.

Although the main source of income is the sale of mining equipment bit, rather than independent mining, but in the current market environment, in the southwest region Feng before the water period ahead of the layout is still a chance that can not be ignored.

S9j and S11, on the site now bit machine retail prices are $400 and $500, if the bit, we can put all the stock sale, a total of 200 thousand of the two mills value will be around 80 million to 100 million dollars. It is important that this estimate was not priced at $1000, including S15 mill.

According to the world’s third largest mining pool operator f2pool tracing mining profit index shows that in the current market conditions, compared to the sale of S9j, S11 and S15 of the vehicle, security self mining more. The index shows that, based on bitcoin (Bitcoin), and the current price of $0.05 per kWh of electricity at a single benchmark, S9j, S11 and S15 and its daily profits were $0.87, $1.8 and $2.88.

Although it is not clear, the final bit can get cheap electricity in where, but according to some mine operators in southwest domestic said that the average price of the cost of the summer wet period when only $0.037 per kilowatt hour, if the mining profit index equation this price configuration to f2pool in the case, each S9j, S11 S15 and its average profit will increase to $1.29, $2.24 and $3.38.

Even if the 200000 sets of equipment, mining bits are assumed to deploy the low-end S9j mining machine, this volume will bring a profit of $7 million 700 thousand, per month for a bit.

At present, foreign media have been asked about the matter, bit company, but the company spokesman declined to comment on the matter.

The market began to recover?

Bit, began to expand the scale of operations, marking the encryption money market is changing.

Last year, the entire crypto currency market slump, leading to more than 600000 bitcoin miners had to shut down mining operations, the sale of second-hand equipment to low-cost mining (such as AntMiner S9). With the decrease in mining activity, and its business bit, has also been a great influence.

Bit, have been disclosed in October 9, 2018 blog (this information can be found on the Internet Archive website), all bitcoin mining machine generated using the SHA265 hash algorithm mining rate (or force) is about 2339 quadrillion hashes/s. The hash bit rate, assuming independent mining all from AntMiner S9, each hash and its rate is about 14 trillion hashes/s, which shows that they have about 170000 machines in operation at the time of mining. (1 quadrillion hash to 1000 trillion hash).

But when the time came in March 5, 2019, under the banner of the hash bit rate has dropped to 1692 quadrillion hashes/s. Based on the above assumptions or if it means that the bit continental shelf about 50000 mills in the past few months, the number of mill’s early March operation in about 120000 units.

Now, bitcoin and bitcoin cash (Bitcoin Cash) hash rate were 44973 hash/s and 1500 quadrillion quadrillion hash/s, which means that in March, the rate of hash bit machine accounted for the total rate of SHA265 mining algorithm based on Hash encryption currency network 3.6%.

Interestingly, mining market is quietly changing, due to the extra power of Southwest domestic hydropower station may produce electricity will be reduced to $0.037 per kilowatt hour, is bound to attract a large number of miners in the region into the pursuit of profit. Suppose, all bit using the latest AntMiner S11 machine (each hash rate can reach 19.5 trillion hash), then the deployment of 200000 devices means that will allow the mainland to get 3800 quadrillion bit hash operator.

 Have to dig the market turning point? Bit, 200 thousand game machine

According to Blockchain.info data show that the current bitcoin network hash rate is about 48000 quadrillion hash/s, if the above assumption is based on words of mining market, a bit ahead of the layout will make the whole network is 7.9%. Of course, at this stage can not determine the upcoming rainy season the bitcoin network hash rate will reach the number, but it is estimated that the mainland and other miners bit layout, the bit currency the whole network is likely to rise to 70 in quintillion hashes/s, the quintillion hashes/s higher than the historical high of 6070.

Now, the “egg” has been put into the basket.

In fact, once occupied an important part, the proprietary business income bit mining is no longer the scenery, only accounted for a fraction of their total income.

In September last year, according to the bit on the Hongkong stock exchange for the initial public offering (IPO) financial performance data disclosed that its 2017, self-employed business income accounted for has declined from 20.3% in 2015 to 7.9%, but after entering 2018, the share has shrunk by half again, only 3.3%.

At the same time, bit mainland business has become increasingly dependent on mining equipment sales, the 2017 vehicle sales revenue accounted for the proportion of total revenue increased from 78.6% in 2015 to 80.5% in the six months ended June 30, 2018, the share soared to 94.3% even.

However, encryption currency bear brought great influence to the continent bit performance, especially in the second half of last year this time. According to reports, bit no publicly available financial data, they in the third quarter of 2018 net loss amounted to $500 million.

At the same time, as of June 30, 2018, bit, has opened 11 mines in Sichuan and Inner Mongolia, new home, and “store” 200000 sets of mining equipment. Some of these mines for bit, independent mining, some will provide hosting services for other miners, and is separated from the mainland has independent operation bit field.

In addition, the bit, had also revealed that in July 2018 the mining hash rate is about 1692 quintillion hashes/s, roughly estimate it, then they should be deployed to run about 120000 mining equipment business.

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