Miners: No man’s land full of fog ahead

We have a long way to go before the next big market reversal.

Miners: No man's land full of fog ahead

As the mountains rain down and CBDC powwows, it seems inevitable that officials will turn the tables on the enemies of another world. For cryptocurrency traders and miners, bad news has followed one another in recent days, with the market continuing to break defenses, falling to record lows, extreme panic, and sideways disappointment, like a bear market. We have a long way to go before the next big market reversal. The blockchain revolution that currently belongs to the cats and dogs is over, and we are leaving the scene of the Fed’s first money-spreading binge and driving into the silent and dangerous no-man’s land, a stretch that could last for months, but the only certainty is that hold the steering wheel in your hands and don’t let off the gas before you see the light.

Liquidity Disorder Party Ends for Now
We have just experienced the biggest monthly drop in history and the market has clearly entered a relatively long period of constant friction on investors’ bottoms, and it is not too much to say that the bears are here. The UK raised interest rates, the pound spiked, the Fed released water, the dollar continued to fall relative to the rmb, and the liquidity in the financial markets kept pulling.

The worst part of the epidemic is that it has cut the world apart once again, the situation of the epidemic is different in each country, which directly leads to the different demand for money printing needed for each country’s economic recovery, but what remains the same is the ambition of the dollar to rule the world, the dollar continues to increase to lower the cost of money is already indisputable, but in addition to the United States other countries are quite afraid, so central banks are raising interest rates warning to prevent inflation The Fed continues to fund heavily to restore the US economy hit hard by the epidemic, but other countries with power seem to be fearful of this hyperinflation, with huge demand for currency on one side and caution and panic generating moderation on the other, it is certain that the market will not be calm this summer, and the cryptocurrency market is certainly not immune. The smart money in the market may choose to run to bonds and gold, a class of assets with high certainty, to wait and see for a while during this period.

The concept of high policy pressure
First let’s compare two policy-related news items from the end of May.

1,Resolutely prevent and control financial risks, adhere to the bottom line thinking, strengthen the financial risk all-round scanning and early warning, promote the reform of small and medium-sized financial institutions to transform the risk, focus on reducing credit risk, strengthen the supervision of financial activities of platform enterprises, crack down on bitcoin mining and trading practices, resolutely prevent individual risks to the social sector.

2,Recently, the National Development and Reform Commission, the Central Network Information Office, the Ministry of Industry and Information Technology, the National Energy Board jointly issued a “national integrated big data center collaborative innovation system arithmetic hub implementation plan” (hereinafter referred to as “the program”), clearly put forward the layout of the national arithmetic network national hub nodes, to start the implementation of the “East number West calculation” project, to build a national arithmetic network system.

Interestingly, when you Baidu the word arithmetic, the definition given by Dounian is: “Arithmetic (also known as hash rate) is a unit of measurement of the processing power of the Bitcoin network. That is, it is the speed at which a computer (CPU) can calculate the output of a hash function.

That said, conceptually speaking, it seems that this official statement is suspiciously inconsistent. As the domestic exchanges take the lead on animal coins and other market chaos, it is not difficult to understand the regulations of the relevant departments, but as the risk of affecting the financial stability of society, the major cloud computing power platforms and the resurgent P2P capital behind them are the biggest hidden danger. The mining itself is just another way of saying arithmetic. Compared to the individual choice of mining or arithmetic technology itself, the arithmetic contract and the leverage effect and over-the-counter capital compliance issues brought about by digital currency trading derivatives are the biggest risks in the market.

In fact, this wave, dancing the most high is not the traditional bitcoin miners and ethereum miners, but hard disk mining on behalf of chia arithmetic and distributed storage FIL arithmetic business, this good at creating pseudo-demand pseudo-blockchain technology real money disk project, in a muddy way into the view of the public investors, but compared to bitcoin mining, these cloud storage of hard disk mining But compared to bitcoin mining, these cloud storage hard drive mining projects did not use any green renewable energy, but simply dumped investors’ money on each other on the same hard drive devices. In the next few months, the blockchain project for this ‘green’ concept is entering the stage of de-facto, compared to bitcoin and ethereum, whether the leading brother of these budding projects can survive the cruel market test without giving up the faith of green bitcoin, let’s wait and see.

It should be realized that lumping one-size-fits-all regulation will often lead to greater regulatory difficulty and risk at a later stage, and will also give rise to more new risks that are difficult for the market to control, such as the current Defi, which we have 94 lessons from the past. Regulation needs to be targeted, establish a long-term mechanism, and learn more from the best foreign experience, which is also the voice of many practitioners.

To wear the crown, you must bear its weight. It will take time to recover.
Bitcoin as another world consensus marker, had been following its own rhythm, this round of bull market bitcoin did nothing, by the major compliance agencies to buy buy and add into the balance sheet, but because of the exchange of the critters in the wild jump and the various capital disk players rise and fall and once again become the target of the crowd. But more than the coin price, the biggest impact in this round of adjustment is still the network-wide arithmetic. As a trillion-dollar asset, the security and consensus behind it all relies on the world’s computing power. Bitcoin’s network-wide arithmetic has fallen from a peak of 176EH to 143EH, a drop of nearly 23%, so there’s only respect for the miners who are still guarding the network. Miners will always carry the weight, they are now stepping into the throttle through the no man’s land at the helm, the only way to persevere through the deepest darkness.

The growth of computing power and mining difficulty often lags behind the price, but the price often corresponds to a steady growth in computing power, but currently we are facing the opposite situation, just bitcoin mining difficulty has dropped 15%, the network-wide computing power may also continue to decline, waiting for the shoe to drop, the domestic mining machine and computing power part of the sea to redeploy will also take at least a month, and the sea mining power Must be stable? Look at the recent Iranian power outage news will know , so the next whether it is arithmetic power or coin prices are difficult to have upward momentum, and in the face of the turbulent financial markets, it is difficult to go rushing again in the near future. But don’t forget anyway, one of the qualities of bitcoin is that it always stuns everyone with a big positive when people think it’s dead, and it always blows everyone away with a super negative when people think it’s a blockchain revolution.

Perhaps the best thing to do this summer is to uninstall all trading and mining software and raise a glass to the exciting Euros with friends. Keep moving, pick up the luggage that was left behind by passersby because of confusion and fear, wait patiently for the next signal gun to go off, and then start the parabolic run again, where the foggy and dangerous no-man’s land ends in a whole new world.

Risk warning: the above views are only the author’s views, not as investment advice

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/miners-no-mans-land-full-of-fog-ahead/
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.

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