What is the future direction of the Bitcoin mining machine?

April 18, 2021
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What is the future direction of the Bitcoin mining machine?


The hot spot in the nearest mining area is that the Litecoin block has reduced production and the miners’ income has been halved. As a result of the miners’ panic, what should be done to close the low-computing bitcoin mining machine? What should I do if the cost of electricity increases? This is the biggest problem miners are currently experiencing.


However, industry personnel said that although the profit reduction of the Litecoin block has decreased, the technology of the Bitcoin mining machine is constantly improving. The miner's mining cost increase is only an excessive time. Waiting for the upgrade of the mining machine power, the difficulty of the block can bring good benefits to the miners.


Rolling bitcoin mining machine business


The Bitcoin mining machine is accompanied by virtual money. Today, digital currency has no practical use. The mining machine is regarded as an investment product. The discount of the future mining yield of a mining machine is the market value of the mining machine. The price of mining machines has changed with the rise and fall of digital currencies. When digital currencies are hot all over the world, mining machines are popular.


Take the Avalon mining machine as an example. In 2017, Jianan Zhizhi delivered 294,500 sets of mining machines, with a market share of 20.9% in terms of delivery volume, ranking second in the world; Bitland ranked the world with a market share of 66.6%. First place; Yibang International ranks third in the world.


From 2015 to 2017, it is also the golden year for mining machinery manufacturers to explode. In just three years, the three major mining machine manufacturers such as Bitian, Jianan, and Yibang International have achieved a compound growth rate of more than 300%. At the end of 2018, all three companies submitted IPO applications in Hong Kong. Although they were eventually rejected, in July this year, Bitian and Jianan Zhizhi submitted IPO applications to the United States again. The results are waiting to be seen.


Before the Bitcoin mining machine was launched, miners generally used the graphics card mining machine to mine. The high-performance computer graphics card can significantly increase the computing power, and the graphics card supply is much smaller than the demand. Graphics card manufacturer Nvidia has benefited from the miner's mining enthusiasm, which has caused Nvidia's old customers and gamers to buy high-end graphics cards.


The only use of the Bitcoin mining machine is mining. The mining machine manufacturer has designed a special mining chip to make the mining machine far more powerful than the ordinary graphics card. Chinese companies have the absolute right to speak in this field.


While expanding the market, the gross profit margin of mining machine manufacturers is also increasing. Taking Jianan Zhizhi as an example, the company's gross profit margin increased from 29.1% to 46.2%. However, in the second half of 2018, the price of mining machines decreased with the decline of bitcoin prices. The profit of a single mining machine was as low as 10 yuan. The mining machine market was cold, and some mining machine dealers even switched. The mining machine has just listed a huge profit to the mining machine.


The biggest risk facing miners is that producing miners is not a sustainable business. A video card retailer in Huaqiang North revealed that when the miners bought most of the graphics cards, Nvidia did not open up the mining machine market, but issued a notice to the dealers, which must give priority to gamers. Obviously, Nvidia believes that old gamers will continue to contribute to the company's revenue, while miners on the wind are not necessarily.


Ma Tianyuan, a senior researcher at the Fire Coin Group, said that for mining machine manufacturers, the entry of digital currency into the mainstream society is both an opportunity and a challenge. Capacity and chip are the core competitiveness of mining machine manufacturers, which can limit the entry of small players, but traditional chip industry giants can break through these thresholds and even achieve overtaking in corners. After the giants personally leave the field, mining machine manufacturers will face tremendous pressure.


Mining with mining machines is not the only way to generate digital currency. “There will be more incentives in the future. There have been many behavioral mining methods. The incentive mechanism is essentially a means to encourage miners to maintain the network and the whole node. "Ma Tianyuan said.


How to transform the prospect of mining machine chips


The AI chip is the same as the ASIC chip. The three elements that determine the development of AI are algorithms, computing power and data. The algorithm and computing power are determined by the chip. According to the concept of mining machine manufacturers, the mining machine chip surpasses the ordinary chip in computing power, and the company's R&D experience on the mining machine chip can be extended to the AI chip.


The development and upgrading of the most important chips of the mining machine, and Bittland believes in making money, has been developing AI chips. Bitcoin's listing proposal has shown that it can improve the research and development capabilities of ASIC chips and blockchain applications and expand production, improve the research and development capabilities of our AIASIC chips and AI applications and expand production. Coincidentally, Jianan Zhizhi's prospectus shows that the first two uses of listed funds are “ASIC chips for developing artificial intelligence algorithms and applications”, “blockchain algorithms and application ASIC chips”.


However, mining machine chip practitioners do not understand the future market of chip mining machines.


A person in charge of the chip business of AI company headquartered in Shenzhen believes that mining needs to repeat a large number of logic operations, and the mining machine chip can repeat a large number of simple logic operation units, and the design is relatively simple. The AI chip not only requires massive calculation, but also requires high flexibility and efficient data interaction efficiency. It caters to the rapid change of deep learning in the evolution of algorithms, adapts to the "smart thoughts" of neural networks, and the algorithm of mining chips. There is a big gap with the AI chip.


There is no future for the pure bitcoin mining business. The story of the AI chip has failed to convince practitioners and regulators that mining machine manufacturers may be lucky enough to land in the US securities market, but for any company, listing is not the end.


The future development of Bitcoin mining machine chips, some practitioners are not very good looking, the market volume, the needs of the miners group is limited. Focus on the development of mining machine chips can only be used for mining mining. The mainstream mining machine manufacturer submitted the listing application again and encountered industry doubts. However, the current industry of the mining machine is out of stock, and the futures are all in a few months. The supply of mining machines is in short supply. Especially in the current market conditions, the price of the currency has risen, although the mining cost is not low, but the mining return is quite good.