“Mining” encounters strong supervision: Huaqiangbei’s boss returns to zero and graphics card prices plunge

Introduction: If Bitcoin or other cryptocurrencies cannot meet the requirements of financial stability, they are likely to be subject to “strong supervision” or even suppression for a long time.

Shenzhen Huaqiangbei, as the distribution center of the national miner service providers, is mainly engaged in “mining” series of products for stall owners, and it has been difficult for more than a month.

In early July, the fifth and sixth floors of Huaqiangbei SEG Plaza, which are mainly engaged in “mining” electronic products such as mining machines, hard disks, and graphics cards, were slightly deserted, and there was no bustling crowd in May. Mr. Jin, the owner of the main mining machine, recalled that in April, everyone was rushing for hard drives, and many “new bosses” entered the game. It was only a few months ago and it was completely changed.

The reason behind this is that virtual currency mining projects are subject to strict national level supervision.

Since June of this year, many major mining positions in Inner Mongolia, Qinghai, Sichuan, and Hefei have been shut down one after another, and the withdrawal of mining from China is a foregone conclusion. Real-time data shows that at 8 am on July 19, the price of Bitcoin was $31121.26. In mid-April this year, the price of Bitcoin once exceeded $63,000, and now the price has been cut in half. At the same time, the prices of Kia coins, Ethereum, etc., have plunged sharply compared with the April or May market.

"Mining" encounters strong supervision: Huaqiangbei's boss returns to zero and graphics card prices plunge

Bitcoin price movement in the past 52 weeks

Experts believe that the main purpose of my country’s supervision and restriction of Bitcoin trading and mining is to prevent financial risks. If Bitcoin or other cryptocurrencies cannot meet the requirements of financial stability, they are likely to be subject to “strong supervision” or even suppression for a long time.

“Mining” product prices fall due to fault

In 2009, the mining industry developed rapidly around the world, attracting countless capitalists. Shenzhen Huaqiangbei, as the country’s largest electronic product trading distribution center with the most complete product range and the largest annual transaction volume, selling electronic tools required for mining has once become the choice for many electronic businesses to transform.

As recently as May, in Mr. Jin’s shop, several employees were constantly assembling mining machines on the desktop. On the most conspicuous wall of the shop, a large-screen LCD TV broadcasted real-time information of various virtual currencies. The price, and the other one shows the price of the mining machine that day, with more than 80,000 top server servers, more than 70,000 high servers, more than 40,000 medium servers, and more than 20,000 low prices… At that time, I came to the store to ask about the coins to be mined. Fans of the circle emerge in endlessly.

“The price of an enterprise-grade 16T hard drive is 5,300 yuan, and it needs to be pre-ordered.” This is a quotation made by Ms. Zhang, a sales store of Western Digital, Seagate and other brand hard drives in early May. At that time, stocks were out of stock and price increases were the norm.

After the appearance of the enterprise-class large-capacity hard disk, the price of Kia coin has been pushed up several times. After mining with mining machines and mining with graphics cards, the new favorite Kia coin can start mining with only a hard disk.

However, after more than a month, after the currency circle was regulated and the price of Kia currency plunged, the price of hard drives has returned to the initial price in the near future.

In mid-July, Ms. Zhang sorted the goods at a stall of less than 10 square meters. When asked again about the price of the 16T hard drive, she said that now it is about 2,000 yuan and the supply is sufficient.

The price of the P-disk server also used for mining has also plunged. Mr. Jin told a reporter from China Business News that a top-level P-drive, with a daily P-drive of 9T or more (new warranty for accessories), was priced at more than 80,000 in May, but now the price is more than 40,000.

April and May are the highlight moments of Mr. Jin in the currency circle. In two months, he sent more than ten circles of friends to promote his store. In June and July, Mr. Jin only posted two news about the store in Moments.

And the graphics cards, which have always been priced strong, have also been affected this time. Jiang Tai, the stall owner who specializes in graphics cards, told China Business News that the graphics cards have dropped by two to thirty percent compared to before.

This time virtual currency mining has encountered strong supervision, some private power plants have also begun to close down, and the number of second-hand graphics cards on the market has also increased significantly. Compared with new graphics cards, second-hand graphics cards have a greater price cut.

According to the industry quotation, the RTX 3060 with the original price of 2499 yuan currently ranges from 2400 to 3000 yuan in the secondary market, and the price two months ago is 6500 yuan; the RTX 3070 with the original price of 3799 yuan is currently 4100 to 5000 in the secondary market. The price ranged from RMB 8,500 two months ago; the RTX 3080, whose original price was RMB 5,499, currently ranges from RMB 5,700 to 6,500 in the second-hand market. The price two months ago was RMB 12,000.

"Mining" encounters strong supervision: Huaqiangbei's boss returns to zero and graphics card prices plunge

Some main mining products stalls are emptied, and continue to hire Huang Qiong/photo

The price of various mining products is cut in half, and the life of mining machine service providers is naturally difficult. Jiang Tai has been in SEG Plaza for more than ten years, starting with selling computers and peripheral products, and then selling graphics cards and mining machines. According to his words, “I will sell what the market needs.”

When the market is hot, the price of a high-end mining machine ranges from more than 100,000 to tens of thousands, and a graphics card ranges from tens of thousands to tens of thousands. Jiang Tai said that in the hottest period, the daily sales amounted to hundreds of thousands, and in general, there were more than one hundred thousand. But now, a day’s turnover is at most tens of thousands, and sometimes there is no money in a day.

At the same time, many merchants told CBN reporters that the SEG Plaza has recently entered the maintenance period and will be closed for more than a month, and orders will be received online during this time.

On the morning of July 15th, Jiangtai saw the notice at the stairway of SEG Plaza. During the mast removal, the SEG Plaza Building and some surrounding roads will be closed for management. Owners and tenants (merchants) are required to be at the time of this notice. From the start, valuables and items needed for business operations will be removed from the building within 24 hours. Starting at 18:00 on July 16, 2021, except for construction personnel and staff with passes, other irrelevant personnel are prohibited from entering and exiting the towers, podiums and underground parking lots of the SEG Building.

Jiang Tai said that during the closure of the building, his business premises will be transferred to Huaqiangbei Underground Mall to continue business.

However, it will still have an impact in terms of absorbing new customers, sending express delivery, and receiving goods.

“Mining” or long-term strong supervision

On June 22, the relevant departments of the People’s Bank of China stated that virtual currency trading activities disrupt the normal economic and financial order, breed the risks of illegal cross-border transfers of assets, money laundering and other illegal and criminal activities, and seriously infringe the people’s property safety.

At the same time, mining also brings huge power loss. According to data from the Alternative Finance Research Center of the University of Cambridge, as of May 17, 2021, the annual power consumption of global Bitcoin “mining” is approximately 134.89 billion kWh. If Bitcoin is regarded as a “country”, it is in Ranked 27th in the global power consumption ranking.

Yu Lingqu, deputy director of the Institute of Finance and Modern Industry of the China (Shenzhen) Comprehensive Development Research Institute, said in an interview with a reporter from my country Business News that the main purpose of China’s supervision and restriction on Bitcoin transaction hype and mining is to prevent finance. risk. For example, Bitcoin lacks a value center, and its price fluctuates sharply, which brings losses to investors, and may even evolve into social risks; Bitcoin cross-border transactions evade cross-border capital flow supervision and bring hidden dangers to national financial security; Bitcoin is black The gray industry provides trading tools, which brings new financial risks such as money laundering and terrorist financing.

Yu Lingqu said that if Bitcoin or other cryptocurrencies are incompatible with the existing financial regulatory system and cannot meet the requirements of financial stability, they are likely to be subject to strong supervision or even suppression for a long time, making it difficult to become a legal financial asset.

"Mining" encounters strong supervision: Huaqiangbei's boss returns to zero and graphics card prices plunge

The slogan of “House of Coin Circle” was replaced with “Server Accessories”. Photo by Huang Qiong/

Along with the changes in the currency circle, the slogan on a wall pillar in the middle of SEG Plaza has also been updated recently, from the “House of the Currency Circle” in May to the current “server accessory”.

Regarding stall owners, in the cold business situation, whether there is any other way out, Jiang Tai told the China Business News reporter that he hadn’t thought of it for the time being. Keep waiting and guarding.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/mining-encounters-strong-supervision-huaqiangbeis-boss-returns-to-zero-and-graphics-card-prices-plunge/
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