Interview with Wang Wenguang, Head of Mining Business of Bit Deer Group: The future of mining lies overseas

Released on February 25, the National Development and Reform Commission of Inner Mongolia "about to ensure that the" difference "double energy consumption control goal task several security measures (draft)", the attendance requirement on virtual currency, Montana mining industry "comprehensive cleaning shut down virtual currency mining project, before the end of April 2021 at all", at the same time will be "a reasonable and orderly control data center construction scale, it is forbidden to build virtual currency mining project". Although only soliciting comments, the industry is still concerned about how long the domestic virtual currency can be dug?

The mining market, on the other hand, is booming. Not long before this, on February 19, Bitcoin's market value broke through the trillion-dollar mark for the first time, becoming the eighth largest asset in the world. Ethereum is not far behind with a price that has also hit an all-time high above $2,000. As the price of coins soared, a large amount of money poured into the mining market, seeking opportunities to get cheap coins.

Outbound mining appears to be emerging as an attractive investment option because of the huge policy uncertainty surrounding domestic mining. Over the past year or so, overseas miners have captured much of the new computing power by spending heavily on mining machines. So why do investors favor offshore mines, and what are the advantages of going offshore? For this reason, Blockbeats spoke with Wang Wenguang, head of mining operations at Bitdeer Group, about where the mining industry is headed after bitcoin's trillion-dollar market value, and why overseas mining is a better business than domestic mining.    

  Wang Wenguang, Head of Mine Business of Bit Deer Group

After bitfawnization, Mining++ will deepen the mining service field and create the most reliable digital asset mining ecological service

Rhythm Blockbeats: Mining++ is in what position and the main areas of development in the future of Bitdeer Group?

Wen-guang wang:Mining++ is a mining service platform launched by BitDeer Group after resource integration. It integrates the mining software team of Bitmain Group and the mine team, including the computer protection software AntGuard, computer monitoring software AntSentry, mine design, mine construction, mine operation and maintenance business.

In the increasingly specialized world of cryptocurrency mining,Mining++ has been built as a one-stop platform for miners within the Bit Deer Group, as long as customers come to fawn group, you can easily enjoy a comprehensive professional mining services, in a simple way, a customer payment, we help customers solve all the problems in the process of mining. The two brands, Bitdeer and Mining++, practice the group's development idea of "one body, two wings, into the sky", provide customers with a package of services, and create the most reliable digital asset mining ecology.

Rhythm BlockBeats: What services do the major business segments of Mining++ provide?

Wen-guang wang:Bit Deer Group is positioned as a digital asset mining ecological service provider, while Mining++ mainly serves the mining end and provides the underlying support for computing cloud services, including hardware and software. Hardware support including mine design, construction, operations and maintenance, as normal field of China's earliest construction team, we accumulate a large amount of mine design and construction experience, covering North America, Europe, central Asia, yunnan, sichuan and Inner Mongolia, xinjiang, summarizes the variety can be applied to different power supply standard and utilization environment of mine design plan. Software support mainly includes mining machine operation automation software AntGuard and AntSentry. The combination of hardware and software will provide customers with high standard, more secure, intelligent mining end services.

It is no exaggeration to say that Mining++ is the most mature and well-established partner in this field. For customers who need to expand overseas mine resources, construct mines and operate and maintain mining machines, MINING ++ is absolutely the best choice.

The future of mining lies overseas

Bullish Blockbeats: There are plenty of investment opportunities in a bull market -- mining, mining, computing, investing, etc. What are some tips on where to invest if you want to participate in the cryptocurrency bull market?

Wen-guang wang:The price of Bitcoin has reached $50,000 and $1600 for ETH.However, after our calculation, the cost of mining a Bitcoin is only $10,000 and the cost of mining an ETH is $200. Mining is undoubtedly of great investment value. However, personal mining, to buy mining machines, to find managed mines, to find operation and maintenance maintenance machines, need to consider all aspects of the problem. In today's highly specialized mining industry, it is too risky and difficult for individual investors to enter the field without the assistance of professional institutions.By contrast, computing power is actually a very good product. On the one hand, investing in computing power is equivalent to buying coins at a low price. On the other hand, it is highly standardized and friendly to investors who lack operating experience of mining machinery and mines. A reliable computing power provider, is the gray level of the primary market fund. For those who want to enter this industry, it is one of the best investment channels.

Rally BlockBeats: Recently, the Inner Mongolia Autonomous Region Development and Reform Commission recently released the plan to shut down the virtual currency mining project documents announced, on the mining industry what impact?

Wen-guang wang:This is actually a continuation of last September's Inner Mongolia Department of Industry and Information Technology required mining companies to withdraw from multilateral power deals. Due to the pressure of economic development due to the epidemic, the document was not fully implemented last year, but the GDP and energy consumption of Inner Mongolia have long been inversely correlated.The fundamental contradiction of being the lowest in energy consumption has not changedIn the context of China's commitment to carbon neutrality, it is a trend to clamp down on industries that consume a lot of energy and contribute little to the economy. This is where the closure comes in.

These measures will push up the trust price of the industry in the short term and make resources in Xinjiang and other places more tight, but we should understand that even the mines in Xinjiang are not 100% safe. Under the background of the continuous construction of 1100kV ultra-high voltage channel, the problem of pit power will be alleviated, and the local electricity price will surely usher in a wave of price hikes. There are many uncertainties in the construction of hydropower absorption park in Sichuan. In domestic mining, the biggest risk is the uncertainty of electricity policy, which has not changed.

Continued and stable mining is very important in the bull market. Compared with domestic mining, overseas mining is much more stable. The policy environment is very stable and the government is more supportive. This is also illustrated by the recent increase in the number of people going overseas for mining.

Rhythmic Blockbeats: What are the advantages and characteristics of overseas mines compared to domestic mines? Has the recent snowstorm and other extreme weather in the US had any impact on the mine?

Wen-guang wang:There are several advantages of overseas mines:1. Stable policies and government support. Both North America and Europe have a lot of power loads and are very welcoming to industries that create jobs and do not pollute.2. High asset value and standard operation. Foreign electrical equipment standards are high, in line with the CE, UL standard of electrical equipment is very value-proof, and not like the domestic, the mine does not run can only be sold as waste.3. Low electricity price and stable power. The average price of electricity is only about 3 cents, and all electricity comes from the grid.

Texas is one of the more concentrated mining areas in the country, and the storm knocked out power at our local mines for about a week, but nothing else. Texas is one of the most market-based places for electricity, and we've received millions of dollars in compensation from power companies in Texas for power outages.

Blockbeats: U.S. companies are buying a lot of mining machines. Does that mean North America will be the next big mining area?

Wen-guang wang:There is no doubt that the North American market is the home of this bull market. Not only are US companies buying large quantities of mining machinery, but US capital markets have provided access to financing for mining companies. Market value/calculation power has become the index to measure the stock price of listed companies. According to statistics, the newly purchased mining machines in North America have exceeded 350,000 units, and it is estimated that 1200MW of mines will be needed. Mining in North America, owning dollar assets and listing in the US is becoming the new business model for mining investors.

The focus of Bit Deer Group's mining business is overseas. With Mr. Han's early keen market sense,We have already built more than 200MW of mines in North America and will expand another 300MW this year, ensuring our leading position in the industry.

Open business and build ecological cooperation in the industry

Rhythm Blockbeats: What are the issues and suggestions for Chinese mining companies that are planning to go overseas? What can Mining++ do to help them?

Wen-guang wang:Although overseas mining has stable policies and low electricity price, which is suitable for long-term operation, it has cultural differences and high construction costs. Once it goes wrong, it will face no small loss. Frankly speaking, it is not easy for us to build mines overseas. We have accumulated a lot of experience that can help us.

Through our contacts abroad and our research into overseas power markets,We can help domestic mine owners find suitable power sources overseas, and through our overseas team, we can provide a package of assistance in mine design, construction, operation and maintenance and other aspects. Even the opening up of equity in our own companies for investment is also the direction of cooperation. Openness, cooperation and diversified development have always been our cooperation philosophy. We also welcome more partners to expand overseas business together and set sail in a broader field.  

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