The Status of the Bitcoin Mining Industry
In recent years, Bitcoin mining developed from the participation
of a few geeks and programmers to a hot investment target with a current market
cap of $175 billion.
Through fluctuations in both the bull market and bear market
activities, many traditional entrepreneurs and fund management companies
continue to play a key role in the mining industry today. Fund management
companies no longer use traditional models to measure mining. In addition to
introducing more economic models to measure returns, they have also introduced
financial instruments such as futures and quantitative hedging to reduce risks
and increase returns.
Bitmain has observed a dramatic shift in the interest of Bitcoin mining
since the previous halving in 2016. A significant number of service companies
have emerged in the mining industry, including third-party mining suppliers,
mining operators, maintenance service providers, mining hardware finance
leasing companies, third-party mining hardware maintenance companies, and
digital currency financial services.
Industry integration saw companies like Bitmain expand their
business to integrate other services. Exchanges began to establish mining
pools, and mining pools began to develop wallets. All of these are a result of
the bear market as companies could not only offer more but now had the demand
to take more on.
The Price of Mining Hardware
For many miners who have entered or who are considering entering
the mining market, the pricing of mining hardware is of key interest.
It is commonly known that the price of mining hardware can be
divided into two categories: factory price and circulating price. Many factors
dictate these pricing structures with the fluctuating value of Bitcoin, a key
factor in both the new and second-hand hardware markets.
The actual circulation value of mining hardware is affected not
only by the quality, age, condition, and warranty…