What is the last boot in the industry.
First of all, review the second article of the fifty-first meeting of the State Council Financial Stability Development Committee: resolutely prevent and control financial risks. Adhere to bottom-line thinking, strengthen the all-round scanning and early warning of financial risks, promote the reform of small and medium-sized financial institutions to reduce risks, focus on reducing credit risks, strengthen the supervision of financial activities of platform companies, crack down on bitcoin mining and trading practices, and resolutely prevent the transmission of individual risks to the social sector.
All subsequent policies for the industry are based on the content of this meeting.
Regarding the crackdown on mining, the spirit of the conference reached the local level before forming the implementing regulations, and the local level was fast. The first is Inner Mongolia, where thermal power is concentrated. On May 25, the Inner Mongolia Development and Reform Commission released a public notice on the “Eight Measures of the Development and Reform Commission of Inner Mongolia Autonomous Region on Resolutely Combating and Punishing Virtual Currency “Mining” (Draft for Comments)” for public comment. The eight measures announced are relatively representative and basically provide ideas for other regions to formulate policies, so the full text is extracted as follows.
A. For industrial parks, data centers, self-provided power plants and other entities to provide sites and power support for virtual currency “mining” enterprises, according to the “Energy Conservation Law of the People’s Republic of China”, “Electricity Law of the People’s Republic of China” and other relevant laws and regulations, increase energy-saving monitoring efforts and reduce energy consumption budget targets; for the existence of intentional concealment, withdrawal and shutdown is not timely, approval and supervision is not effective, according to relevant laws and regulations and party regulations to seriously pursue responsibility and accountability.
Second, for large data centers, cloud computing enterprises and other subjects with virtual currency “mining” behavior, the competent departments to cancel all kinds of preferential policies, withdraw from the multilateral trading market of electricity in Inner Mongolia, according to the “Energy Conservation Law of the People’s Republic of China” to deal with strictly, seriously held accountable.
Third, the communication enterprises, Internet enterprises and other subjects have virtual currency “mining” behavior, according to the “People’s Republic of telecommunications regulations,” the relevant provisions of the competent departments shall revoke the value-added telecommunications business license, seriously held accountable.
Fourth, the Internet cafe and other subjects have virtual currency “mining” behavior, by the competent departments in accordance with the law on its suspension and rectification and other disposition.
Fifth, the unapproved private access to power supply virtual currency “mining” projects and other subjects, according to the “Criminal Law of the People’s Republic of China” and other relevant laws and regulations, its illegal power theft shall be transferred to the judicial authorities.
Sixth, enterprises, individuals and other subjects in the form of virtual currency money laundering and other illegal acts, according to the “Criminal Law of the People’s Republic of China” and other relevant laws and regulations, according to the law referred to the judicial organs to deal with.
VII. For enterprises, individuals and other entities using virtual currency for illegal fund-raising and other acts, according to the “Regulations on Prevention and Disposal of Illegal Fund Raising” and other relevant laws and regulations, the competent departments to deal with strictly.
Eight, the existence of virtual currency “mining” behavior of the relevant enterprises and related personnel, in accordance with the relevant provisions into the blacklist; public officials use their positions to participate in virtual currency “mining” or to provide convenience and protection, all transferred to the discipline inspection and supervision organs.
Inner Mongolia is one of the first local governments to deal with mining companies, and the bitcoin mined from here is conservatively estimated to account for a quarter of the world’s bar. The mining province benefits first from local coal and electricity, secondly from land, and thirdly from policy support. The first perception of those who have visited mining sites in Inner Mongolia should be “big” and the second is “deserted”. The best hotel in Erdos has 1.5 times the area of ordinary rooms in other cities, and the price is only three to four hundred, and outside the hotel is a huge civic square, surrounded by two shopping malls, which is the downtown of the city. Even in the evening when the crowd is concentrated, the square is very few, more empty. There is an industrial park a few kilometers from the center of Ordos, and it is a real ghost town at night. There is a big data center outside the city, where several big Internet companies put their cloud computing or other power-consuming departments. In such big data centers we can usually see rows of cooling fans in other plants, and many of the big miners set up their mines here. In industrial parks and big data centers, the scale of mining farms is usually very large, where the transportation is relatively convenient, and the power supply is stable and invoiced, although the electricity cost is a little expensive.
Besides Erdos, the surrounding places like Wuhai are also popular mining towns for miners. Land is cheaper here, and many mining companies choose to buy land to build plants instead of leasing. When the industrial park was inaugurated, the miners and local leaders went on stage to cut the ribbon together, and firecrackers and fireworks were set off.
In fact, old miners and large-scale mining enterprises in the last round of policy crackdown on the very careful selection of sites, investment in mining unlike secondary market trading, plant, mining machine mobility is very poor, stability and safety is one of the most important factors in mining. The policy will only get tighter and tighter, and the space for coal power will get smaller and smaller. The same situation as Inner Mongolia and Xinjiang Gansu and Shaanxi, we all pin our hopes on Sichuan Yunnan and Guizhou. These regions are the major domestic hydropower provinces and the last base for miners to retreat to.
The market’s response is very pessimistic, as soon as the Inner Mongolia policy out of the entire network arithmetic plummeted and affected the mining pools, the world’s top three domestic mining pools fell by up to 20% of the arithmetic. Overseas mining pools suffer domestic for a long time, this situation can not help but laugh out loud.
The Cloud Computing trading platform also announced that it was ceasing to serve Chinese customers. What followed was a continued stampede in the secondary market. Miners with overseas resources went to sea immediately after the first shot in Inner Mongolia, judging from the high level of this meeting, according to past experience, but the spirit of high-level meetings to local implementation will be overkill, simply put, the local will definitely use the simplest way “one size fits all”. Another part of the miners hold the idea of “digging for a day is a day” “at least digging after the abundant water period and then stop it”, still expecting the policy can be flexible to treat hydropower. Even so, they have started to clean and pack their machines and prepare for the migration. Although waste and abandoned power can bring local income, solve some jobs, and in some cases even pay taxes to the government, they can be ignored in front of the “stability overrides everything” principle of the conference spirit.
In the “graphics card bar” such information gathering place, there are mining site clearance pictures, graphics card prices plummeting posts.
On top of that, underneath the policy is a difficult ‘deleveraging’ for miners. A portion of miners pledged bitcoin to borrow fiat currency, which was used to invest in mining farms to buy mining machines, and were inevitably liquidated in the death spiral market.
Many people were guilty of empiricism when confronted with the spirit of the May 21 meeting (including me). At that time, I saw a lot of arguments like “here we go again” “once a year”, arrogantly sharing the “94 experience”. There was no serious analysis of the current macro and micro economic situation, and underestimated the authorities’ understanding of the industry. A large portion of new investors have not experienced the policy storm, the low-cost liquidity built by defi has increased the leverage risk to some extent, and institutional investors are also potential shorting forces. In the face of trends, many positive factors can be a cause for a stampede.
Regarding the crackdown on trading, so far it looks like it’s all exchange-initiated reactions. The first was the announcement by a derivatives exchange to stop serving domestic users and restrict domestic cell phone logins. Some second- and third-tier exchanges also began to shut down OTC and clear out domestic users. The second thing that was more vocal was a new round of information blocking, with a number of head accounts cleaned up by microblogs and public websites. But we are all used to such a living space, wailing to wailing, actually a little sad sense of collective honor, and then each blogger has sacrificed their own small number.
About the last boot, after Inner Mongolia issued the article, we feel that Sichuan Yunnan is the last boot of the mining industry. But yesterday someone said that the country is about to “ban the production as well as export of mining machines”, a few weeks ago when I heard this statement I thought it was very crazy. But now I’m a bit convinced, because yesterday miners held a “self-help conference” in Chengdu, and mining companies that had laid out early abroad have been selling their futures machines, and have already sold them until the second quarter of next year.
Everyone’s eyes were actually on the two exchanges, O and H. When O took down the OTC of its own platform coin (and later restored it), it was immediately spread as “O shut down the OTC”. Despite investors’ complaints, the two exchanges were silent. Only the executives quietly withdrew from the country and started a large-scale overseas recruitment. The rumor is that first the leveraged contracts were shut down, then the OTC, the domestic IPs were restricted, and finally the existing domestic users were purged. This is also the most logical script, the enthusiastic air force began to P chart.
In fact, in the structure of the domestic long ago there are no these two exchanges, but naive brand operation for too long precipitation is too good, despite repeatedly reiterate the domestic does not exist, and O and H vigorously cooperate with the authorities to combat virtual currency crime, support the government’s development of blockchain technology, but people still do not buy it. In the face of the spirit of the May 21 meeting, it’s time for these two to pull the plug: exit the domestic market, completely abandon the two names of O and H, and vigorously support foreign brands.
That’s the best boots on the ground. And the netizens have even thought of a name for the new platform.
On the question of whether the bull market is still around, many of the indicators have turned bearish, but the industry today has a hundred times the number of participants than it did several years ago and is expanding exponentially in size. Although many projects have come close to foot chopping from their highs and mainstream coins have been cut back, whether the plunge is caused by intrinsic claims or exogenous catalysts, it is helping to eliminate the bubble. All in all, this is a bull market that has not gone through the process, is the bull still there? I can’t answer that either.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/if-oh-announces-the-closure-of-the-domestic-exchange/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.