Exclusive interview with BSCI Fan Jianwei: The graphics card miner has become the standard equipment in the mine, and the net increase of computing power will reach about 20% next year

The Venezuelan Army has posted a video on its official social media account confirming the operation of a "digital currency production center" built by its 61st battalion at Fort Tijuana in the capital, Caracas. Venezuela is suffering from high inflation and economic sanctions from the United States, forcing its citizens to adopt cryptocurrency for daily transactions.

On the other hand, the Iranian authorities have also made frequent moves in formulating cryptocurrency trading and mining policies. On Oct. 30, Iran began work on new rules that would allow local miners to sell bitcoin mined in mines directly to the Central bank of Iran, allowing the authorities to pay for imported goods. In addition, TPPH, one of Iran's major power companies, is preparing to hold a tender to supply three power plants to the Bitcoin mine.

Compared with previous domestic monopolies, bitcoin computing power is gradually becoming decentralized, with a number of new mines and computing power emerging around the world. It is not hard to predict that this will become more evident in the future as local policies become clearer.

How has the pattern of mines changed at home and abroad this year? Under the favorable overseas policy, will the mining union choose to go to sea? Has the S9 series old mining machine been eliminated? With Ethereum 2.0, will miners walk away? Bitcoin prices have repeatedly hit highs. Do miners sell COINS on a large scale?

To answer these questions, Beat BlockBeats interviewed Fan Jianwei, head of BSCI, and the following is his summary of the current situation of the mining industry and his views.

Rhythmical BlockBeats: Can you first briefly explain the situation and changes of the pattern of mines at home and abroad?

Mr. Fan: The Asia Pacific region is still the main mine site in the world, but there are also mines in Europe and the United States and the Middle East, and they are growing.

It is not hard to see that the size of overseas mines is accelerating. Among them, the United States mine trusteeship is in short supply, Iran and other sanctioned countries have a lot of demand, and even the presence of mines in Africa. All these have led to a surge in demand for mining machinery to go to sea. It is estimated that more than 60W machinery is facing the choice of going to sea.

Compared with the domestic mine, there is still a clear alternate boundary between the dry period and the wet period. The stability of the "park" in Sichuan, which is a big power supply province in rainy season, has been greatly improved. Different from the shortage of overseas mining machinery, there is still a stock mine and stock load in China, which can increase greatly in the short term. And the comprehensive stock and incremental model of the situation continues, the mine in the next 1-2 years is still a buyer's market.

Global Mine Map (Asia Pacific)

Global Mine Map (Europe and America)

Resource allocation in mines has also changed:

1. Xinjiang Zhundong accounts for more than 40% of the total dry water power load; If the market permits, add 30-40wKW in a short time;

2. Relatively concentrated distribution of foreign regional resources: Central Asia (Kazakhstan), the Middle East (Iran, UAE, Kuwait), North America (The United States, Canada), Northern Europe (Norway, Sweden), Africa and other places;

3. Foreign power load tends to be 40%;

4. The industrial pattern of using the entire national resources to arrange mines and mining machinery appeared; One-stop service from construction, procurement to operation;

BlockBeats: You mentioned that foreign mines are taking shape. Will Chinese miners want to move? Because at present it seems that overseas policy is moving towards standardization.

Fan Jianwei: Foreign environment tends to be "friendly". Specifically reflected in:

The North American region is as stable as ever, and the mines in North America exist in the "supply is less than demand", with more mining machinery available; Good short-term investment returns;

2. The power resources in the Middle East are scattered, and the power generation cost is low, so there is a strong demand for models over 80W to go to the Middle East.

3. The new load in Central Asia (Kazakhstan) accounts for a large proportion;

4. Mines first appeared in Africa (Ethiopia).

As a result, some miners will choose to go to sea, while overseas sites are mostly built by "cooperation". Few domestic miners are setting up mines abroad in a wholly owned way, which is risky. Usually one party is familiar with overseas conditions and is responsible for the establishment of the mine; Another partner is responsible for mining machinery and technology provision.

In fact, domestic policies are also gradually changing: among them, "Local Sichuan" is restrictive and friendly, while Inner Mongolia in Xinjiang tends to be selective and neutral. The "consumption zone" led by the Sichuan government is very stable, and will become the mainstream trusteesion in the future. However, due to the overall planning of the government, "consumption of park electricity" and "direct power supply" will be competitive in the next 1-2 years.

Rhythmic BlockBeats: As the price of Bitcoin approaches its all-time high recently, what percentage of the market is the S9, which has been eliminated several times before? How much is the ratio between old and new miners?

Fan Jianwei: The computing power of the whole network declined from the end of October to the middle of November, when the migration of mining machines ended during the flood season. We expectS9 and some of the same series of old mining machines (16nm) in the full network computing power accounted for about 25%, after the end of the flood period should also have entered the phase of elimination, many of the old mining machines have been standby or shut down.

At the beginning of November, the computing power of the whole network is about 105E, and it has picked up recently. This means that several large mining machine manufacturer inventory has been basically shipped to each mine, the market added a lot of mining machines.

There are also a lot of futures miners in advance of delivery, such as the Bitland ant mining machine some of the scheduled December delivery of futures in November has been issued. Another factor is the movement of miners out of the sea, to offshore mines that could not sustain profits at home because of low computing power. It is learned that the average electricity price of some overseas mines is even less than 0.2 yuan, far lower than the current domestic mine price.

However, there are still some risks in going to sea. Miners need to find reliable and appropriate resources and channels, or they will face the situation of double loss of capital and mining machinery.

Computing power will continue to grow next year, with a quarter of a million new miners expected to be added from today (1 December) by the start of next year's flood season. The computational force increases between 25 and 30E. This data does not include the existing computational force, but is an incremental computational force.  

What is the market share of pulsating BlockBeats? After Ethereum turns to PoS, will its miners give up digging?

Fan jianwei: ETH2.0 has had the biggest impact in Ethereum's history. It is predicted to exceed the impact on ETH from the previous days of 1CO and DeFi. First of all, the PoS pledge mechanism generates a huge demand for ETH. At present, the ETH pledged on DeFi is about 8%, and there is about 2% on the grayscale. In the future, the ETH pledge of ETH2.0 is expected to reach about 30%, which will lead to a great reduction in the ETH in circulation. (Data as of early November)

This future expectation has created a very large demand for graphics card slots, which are typically allocated for 10 percent of the load of new mines and renovated or expanded mines. The load utilization rate of "video card position" is not high, so it needs targeted supplementary design and construction scheme.

In fact, as far as we know, the layout of ethereum mining machine is very large, ethereum mining machine revenue is also very considerable. Compared with ASIC mining machine, graphics card mining machine has low power consumption and is insensitive to changes in electricity charges, so it can continue to mine. The mine now will basically reserve some machines to the graphics card mining machine, but the volume of the graphics card mining machine is relatively large, with a graphics card mining machine position can put 3 S19 mining machine. However, its electricity consumption is small, stable load can effectively improve the utilization rate of the mine.Video card mining machine is the mine just need to be configured, in the mine video card mining machine of the proportion of about 10%.

After Ethereum 2.0, the impact on miners is likely to be that 4G graphics CARDS may no longer be able to continue mining, while 5G and 8G graphics CARDS can still continue mining. 2.0 is not an overnight process, and graphics miners should be able to continue digging for 2-3 years.

BlockBeats: We know that not only do miners maintain cyber security, but the bitcoin they hold also has a significant impact on the direction of the market. So will there be a mass sale of COINS by miners as Bitcoin booms?

Fan jianwei: Most miners don't say they'll sell their COINS right away, but selling them to pay their electricity bills is a real necessity. Electricity bills are likely to rise by as much as 50% in most places after the dry spell, a challenge for miners. There are miners out there, and that's normal. But now in the bull cycle, generally speaking, selling COINS is not a good choice.

BlockBeats: Thank you very much for your interview with us today. Could you finally introduce the Bitcontinent Supercomputing Center? For many readers, the existence of a supercomputing center is a bit of a mystery.

Fan Jianwei: In fact, we are mainly in the encryption market to undertake a frame and integration of the role. In the upstream of the industry, when we connect with investors, it simply means some enterprises, institutions or individuals who have capital and investment needs but do not know which direction to invest in. We provide them with an option to invest in a mine.

For the downstream of the industrial chain, we will follow up with some big customers and contact miners with the needs of mine construction. This segment of the customer may have equipment, experience or even power resources, but lack sufficient funds or are willing to take more money to build the mine.

So our role is to integrate the upstream capital side and the downstream resource side. We have abundant resources and experience in mines.

In short, there are two advantages to a supercomputing center:

1) Rich in resources and able to avoid various risks;

2) The future is available, and the return rate of capital investment is stable.

Welcome to join the official BlockBeats community:

Telegram Subscription Group: https://t.me/theblockbeats

Telegram Discussion Group: https://t.me/BlockBeats_App

Official Twitter Account: https://twitter.com/BlockBeatsAsia