'Trend' despite the bitcoin price drop | mining power has increased by 55% this year

1. Although bitcoin price drop bitcoin mining power has increased by 55% this year; 2.58% bitcoin mine has 'key human risk' in China; 3. Bitcoin RSI index has reached the lowest level since 2016; 4. Guangdong police cracked a big case of Bitcoin online gambling

1. Despite the drop in bitcoin prices, the bitcoin mining power has increased by 55% this year;

The price of Bitcoin has now hovered at a low of $6,400, and has fallen more than 50% year-to-date, plummeting 66% from the highest ever price of $20,000 in December. However, a large number of participants and pools Competition processing transactions, bitcoin mining environment is expanding on a large scale. According to Cryptoslate, the year-to-date bitcoin mining network computing power Hashrate has grown to 155%, Bitcoin mining participants have not lost their confidence.

It is reported that the main reason for the increase in bitcoin mining power is that each new Bitcoin block will generate 12.5 new bitcoins, with a reward of about $78,000. This huge reward still encourages miners to explore more available trades. Bitcoin, but with the decreasing number of bitcoins available for excavation, the limited supply of Bitcoin will gradually manifest. By May 25, 2020, the next 'halving of production' may occur. , tapping new bitcoin block production to 6.25 new bitcoins, according to the current bitcoin price, the incentive to mine each bitcoin block is reduced to 39,000 US dollars. So the sooner you dig more bitcoin mining Participants are still profitable. cnBeta

2.58% of Bitcoin mining plants have 'key human risk' in China;

Intern reporter Li Shiyun Reporter Xie Zhenyu Every edited Chen Junjie

The impact of the Sichuan flood on the global bitcoin computing power seems to be worrying, but some insiders have expressed deeper concerns.

Some analysts told the Daily Economic News reporter that if any major blow to the Sichuan Bitcoin mining pool would affect the global hash rate, it further stated that Chinese miners still dominate the cryptocurrency, while China’s bitcoin digging The mining industry has a 'key human risk' for the entire bitcoin industry (ie, the risk of losing a key person will be a devastating blow to the collective).

At present, China is almost monopolizing the bitcoin mining industry. According to iResearch, the global Bitcoin mining machine manufacturing market is dominated by the three major manufacturers of Bitian, Jianan Gengzhi and Yibang International, and all three major manufacturers are Chinese companies, in 2017, the total sales revenue and sales of the three companies accounted for 90% of the world.

A bitcoin industry research report from Cambridge University in April 2017 showed that 58% of the world's bitcoin mining plants are located in China, while the second-ranked US only accounts for 16%.

Mining is prevalent in China, and a large part of it is due to the huge demand for electricity in the industry, while domestic electricity prices are lower than those in some countries.

From the point of view, there is no more leap in the iterative aspect of the chip. 'The current competition is no longer the ability to compare a single chip, but how many chips a mine can plug in, and handle the problem of heat dissipation and power supply. 'The industry even circulated such a saying, 'Power determines the power, and the power determines the wallet'.

According to a report by Morgan Stanley in May this year, high energy demand is also a challenge in the Bitcoin industry. The report mentions the POW (Proof of Work) calculation method used to protect bitcoin transactions against electricity. The demand is huge.

Affected by some of the above factors, China has tightened the relevant policies for bitcoin mining. According to relevant reports, in January this year, the Mujin Remediation Office issued documents to all localities, requesting comprehensive measures such as electricity price, land, taxation and environmental protection. Guide enterprises within the jurisdiction to order the bitcoin mining business in an orderly manner, and regularly report the progress of the work.

According to reports, large domestic mines have begun to transfer some of their business to countries with similarly low electricity tariffs in Canada, Iceland, etc. For example, Bitmain, which operates China's two largest bitcoin mines, has established branches in Singapore. And in the United States and Canada to carry out mining operations. In January this year, the founder of the Leipzig pool (BTC.Top) Jiang Zhuoer also said that the company is opening a branch in Canada, because the cost of operating the mine in Canada is relatively high Low and stable.

Some small mines are also flexible in finding a living space. The operators of a small mine said to the reporters of the Daily Economic News that 'the place was not in the past, and it has changed from hydropower to electricity.' Daily Economic News

3. The Bitcoin RSI index has reached its lowest level since 2016;

According to data from the Bitfinex exchange, the CoinDesk's Bitcoin Price Index (BPI) reached a low of 70,413 US dollars for a consecutive 70-day low, and the Bitcoin Relative Strength Index (RSI) reached its August 2016 level (26.4).

The Relative Strength Index (or Relative Strength Index) is used to identify overbought and oversold conditions for an asset by comparing the magnitude of recent gains and losses over a specified time period to measure speed and price changes.

When such a level is touched, the indicator indicates that the price action is approaching a level below the true value of the asset, and a price rebound often occurs.

In the daily time frame, BTC / USD rarely touches the oversold level (<30), 但是当它发生时, 价格历来表现良好. 2月6日是RSI水平最后一次低于30的时候, 当时价格在短短两周内从6,000美元上涨至11,788美元, 导致约96%的涨幅. 在此之前, 2016年8月14日, 当比特币价格显示563美元时, 比特币的RSI水平略高于26. 即使到今天, 比特币的价格也没有低于563美元, 目前的水平代表价格上涨约980%.

However, although oversold indicators tend to show signs of weakening, bulls may still need to be cautious before Bitcoin's daily RSI reaches a low level.

According to Bitfinex, the lowest level recorded since 2013 was 16.1 on August 18, 2015.

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4. Guangdong police cracked a big case of Bitcoin online gambling

CCTV News: Recently, the Guangdong police launched an operation to crack down on the World Bank gambling crimes, successfully knocked out more than 20 suspected gangs, and arrested more than 540 suspects. Among them, Maoming police cracked the first use of bitcoin for online gambling. Extraordinary case, preliminary statistics, the case water flow exceeded 100 billion yuan.

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