Bitdeer operating chief Ye Jiejie: There will be no big change in the mining machinery market pattern in 1-2 years

On April 22, "the second bitfawk 421 water festival and mining ecology conference" was held in Beijing, which was the first time bitfawk group met with everyone publicly. Wu Jihan also delivered a speech at the conference as the chairman of the Bit Deer Group.

The well-known BitDeer, as one of the two sub-brands of Bitdeer Group, has developed into a comprehensive mining cloud service platform. In addition to the traditional cloud services of cloud hosting and cloud mining, BitDeer is also exploring new service forms.

Rhythm Blockbeats took this opportunity to interview the head of operation of BitDeer Ye Jiejie, asked him to introduce the development and upgrade of BitDeer in detail. Ye Jiejie expressed his views on the current mining pattern in the exclusive interview, and analyzed from multiple perspectives that the mining machinery market pattern would not change greatly in 1-2 years. He also revealed that BitDeer will support more currencies in the future, and is exploring multiple areas of business, including the storage sector.

The following is an interview with Ye Jiejie by Rhythm Blockbeats:

Rhythm BlockBeats: What have been the changes in the business from a division to a group? What is the main business of Bit Deer right now?

Ye Jiejie:The business has been further expanded horizontally and vertically, which is reflected in more main business Mining++, which is provided for the research and development of mine management system, and overseas compliance mine construction business. Vertically, it is reflected in our deeper computing service, including the introduction of several third-party suppliers, the expansion of more currencies, and customized service of institutions. From a single computing power sales business into a comprehensive service platform for mining ecology

Routine BlockBeats: We have been in contact with Deer a lot before. It seems that senior executives of Bit Deer Group have been changing positions all the time. Is it still in the adjustment period? Will it affect the growth of the company?

Ye Jiejie:The change of the company's management is also an evolutionary process. As the market changes, we should also change accordingly. Internal post adjustment is a normal thing that every company will experience. This change also does not affect the development of the company. The core reason is that the business of Bitfawn has been developing for more than two years, and the whole business has become mature. Job changes can sometimes help us to further enhance our competitiveness, and the company will be more diversified in the future.

Rhythm BlockBeats: At the conference, you said you don't show up very often and you're probably not well known in the industry. Could you briefly introduce your previous experience?

Ye Jiejie:I have worked in the Internet field for many years. I have worked in Xiaomi and Ali as a product manager. At the end of 2018, Bit Deer joined the company before launching. It can be said that he has been with Bit Deer throughout its development. Therefore, I am familiar with the internal business operation. Currently, I am mainly responsible for the operation management of Bitfawn computing cloud business.

BlockBeats: After Bitmain split this year, Bitmain's former position as a giant in the mining industry is bound to be weakened. How will the current mining machine and computing market structure change?

Ye Jiejie: The mining machine pattern and computing power market of the industry in the next 1-2 years should not have much change. One reason is the limitation of research and development capacity. Now it is 5nm technology, and the chip technology of mining machine has reached a stage in the short term.

In terms of production capacity, the chips will be out of stock in the next year. We also see that the futures of Bitmain's Ant Mining Machine and What Mining Machine have been sold until the end of the year. The major miners in the market are also largely tied to manufacturers that can produce high-performance chips, such as Bitmain and TSMC, or Samsung. TSMC is still an international leader in both chip production and production capacity, so we predict that there is little likelihood of a major change in the computing market and mining machine landscape for at least this year.

Moreover, in a bull market, the price of mining machinery rises, and large mining machinery manufacturers with sufficient cash flow have more say in the market. It is unlikely that the emergence of small mining machine manufacturers will change the industry pattern

You mentioned at the conference that there are three stages in the development of Bitcoin mining. The first stage is the emergence of the first ASIC mining machine in Avalon, the second is the emergence of Bitmain and what mining machine, and the third stage is the emergence of new mining machine manufacturers such as Hummingbird mining machine. So you don't think these third stage mining machines will change or threaten the status quo?

Ye Jiejie:As mentioned earlier, the market is almost full of existing miners in a bull market, so it is usually a bear market that is more likely to see a change in the mining market pattern. Mining machine market is a very demanding field of cash flow. Under the bear market, the cash flow of large manufacturers is very high. The manufacturing process from design to production of mining machine chips is very expensive, including the consumption of flow plates.

After these two bouts of bull and bear, we can also see that in a bear market, even big companies like Bitmain will have a tough time. And the way to deal with that is we've seen it before, by laying off people and things like that to reduce expenses, to survive the bear market. Small mining machine manufacturers are relatively more flexible, if they have better research and development ability, or in the bear market through the production of small currency mining machine to accumulate users and funds, and then in the bull market will have the opportunity to gain momentum. What mining machine is a good example, they are in this way step by step to grow larger.

Beat BlockBeats: Before we said the S9 was the king of the machine, it's been through two bulls and bears and it's still mining. What type of mining machine do you think the new machine is?

Ye Jiejie:That would be the S19 Pro. This mining machine has excellent stability. Influenced by chip capacity, a short time should not have more cost-effective mining machines.

Rhythm BlockBeats: Bit Deer has launched a new product called Computing Market. Could you tell us a little bit about it? What standards are there for cooperative businesses to choose from now? How to ensure quality?

Ye Jiejie:The basic criteria are:

1. Owned Bitcoin or Ethereum miners with more than 5000 units, or R & D mining machine manufacturers;

2. Intention to supply more than 500 sets;

3. Trusted in a compliant mine;

At least 3 years working experience.

At the same time through our familiarity with the industry, further from the credit degree to screen suppliers.

For example, we work with Leibit of Jandraw, who have been in the industry for many years and have their own position in the industry. We are also very familiar with their companies. We have been partners for many years and know their conduct thoroughly. Their brands also have core business capabilities in the mining circle, which can better protect the interests of users.

As for new partners, we will inspect them in accordance with strict audit standards, and we need to pay a certain deposit to ensure the quality of our cooperative companies and protect our users.

Rhythm BlockBeats: On April 7 this year, the Hong Kong subsidiary of A-share listed company Wisdom Holdings reached A cooperation with Bit Deer Group, and completed the first batch of procurement of blockchain computing cloud services with A total amount of US $12 million from Bit Deer Group. This is the first A-share listed company to purchase A domestic platform cloud computing power service. Could you give us more details about the cooperation? How did the two parties determine their cooperation with each other? Is there any regulatory resistance?

Ye Jiejie:This cooperation is also after a long time of communication and running-in. Wisdom shares are the cooperation between our Hong Kong subsidiary and the main body of our Singapore company, and wisdom Hong Kong subsidiary has issued announcements and details in accordance with the requirements of the Securities and Futures Commission, which is fully compliant on the whole.

Law BlockBeats: What does this collaboration mean for Bit Deer and whether there will be more such collaborations in the future?

Ye Jiejie:If there is an opportunity in the future, we will definitely seek more cooperation, develop our business in compliance, further serve more institutional customers, and also popularize the blockchain technology to companies in more traditional fields. In addition, we are also trying to cooperate with traditional enterprises to explore the possibility of the implementation of blockchain technology, such as the cooperation between decentralized storage technology and traditional content websites, so as to gradually expand the service types and service objects. Blockchain business to more landing and applicability of the direction of expansion.

Routine BlockBeats: Are you talking about a storage technology business like Filecoin? Is it in the early stages or do you have a rough prototype?

Ye Jiejie:Similar to Filecoin, but not limited to a single project. It is still very early days. We need to fully understand and provide a guaranteed service to our users. No more details have been released to the public.

BlockBeats: During last year's Water Festival, Wu Jihan mentioned that the emergence of Bit Deer was to bring mining back to the era of decentralization, and let more mining enthusiasts and cryptocurrency enthusiasts get involved in the mining industry. What has beet deer done in that direction this year?

Ye Jiejie:First of all, our global user penetration has increased dramatically this year. We now have users in more than 200 countries and regions around the world. In addition, from the perspective of product richness, the platform also provides more products in more currencies. As mentioned just now, we are still exploring new businesses.

Secondly, the product on the purchase amount of more flexible, before our product prices may be more oriented C end users, in a range of dozens to thousands or tens of thousands of dollars, if the user wants to big money to buy now, want to put into hundreds of thousands or millions of dollars, for example, we also provide specialized investment agency services to help him.

In addition, for users who do not want to buy a computer and want to buy a mining machine, we have also significantly lowered the threshold. For example, if you want to find a mine to manage the mining machine by yourself, you usually require at least 50-100 mining machines. According to the current price of a S19 Pro mining machine, the investment is probably 5-10 million, which is actually a relatively large investment. BitDeer cloud hosting business "one lift" model can be a good solution to this problem.

Rally BlockBeats: A few days ago, the unexpected security checks in some regions led to a sharp decline in computing power. The market is worried about local policy changes during the flood season. What's your view on this? What advice or strategy does Bit Deer have for dealing with this situation?

Ye Jiejie:Policy review in the future will be an inevitable and regular occurrence. The suggestion is that we should first choose the mine that is in compliance. The mining enterprises we cooperate with are all in compliance, such as the power consumption park, which has little impact on us. However, it is also a reminder that compliance is a trend, and the impact on miners may depend more on their ability to bear the loss, which is relatively hard for small miners to bear in this situation.

Such a situation would also accelerate the globalisation of mining and make it a trend for miners to go out to sea. Domestic mines will be reduced and gradually moved out.

Recently, the topic of carbon neutrality has become a hot topic. People say that Bitcoin mining consumes energy and Inner Mongolia has previously announced the liquidation of mines. How will this affect the mining industry? How are mines and miners coping?

Ye Jiejie:Carbon neutrality has a large impact on miners. At present, thermal power mines need to measure the risks involved, while the impact will be much smaller if the mine is built in a hydroelectric consumption park. Mining impacts can be seen in the short, medium and long term.

Short-term: Escrow prices are sure to rise. Hydropower is relatively safe, and a stampede that is less affected by carbon-neutral policies could drive up bills further.

In the medium term: the mining opportunities will gradually migrate to the central and western regions, and the domestic computing power will be concentrated in the central and western regions.

Long-term: Miners going to sea is the general trend, the capacity of the southwest region is also limited, overseas opportunities will be greater. Miners need a more stable environment to work in, reducing the cost of relocation.

Rhythm Blockbeats: Can you tell us about the future development plans of Bitdeer?

Ye Jiejie:We will continue to improve the level of service, while expanding new product categories. For example, just mentioned the storage plate, there are Ethereum, ETC, LTC and other currencies.

In the future, BitDeer will focus on providing trusted digital currency mining solutions for global institutional clients and high net worth individual investors, as well as providing open and shared mining ecological infrastructure for high-quality industry partners, so as to make the mining services better.

We are also positioned to be a trusted digital asset mining ecosystem service provider.

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