The resistance to the end of the mining industry is only a matter of time?

After the May 19 plunge, the global crypto market has not fully recovered.

The resistance to the end of the mining industry is only a matter of time?

With the ban on mining in Inner Mongolia, Tesla CEO Musk repeatedly blaming BTC mining for not being environmentally friendly, etc., the coin price is sluggish and many industry insiders believe that the bear market has come and the crypto mining industry is in danger.

In fact, the global mining industry has been facing a lot of problems since February this year. The crazy rise in coin prices has attracted more enthusiasts to enter the mining industry, and the competition in the mining industry is fierce; while graphics card miners have to compete with gamers for GPUs, for example, in the United States, the price of some graphics cards has increased by about 120%. The shortage of spare parts has aggravated the crisis in the mining industry, and the new crown epidemic has added to the mining industry’s woes.

With the emergence of new coins such as Chia (XCH), miners are looking for alternative methods of mining. In the case of Chia, mining this cryptocurrency requires the use of solid state drives, which are much cheaper than GPUs.

Chia uses the available space on the device’s storage, and the more space available, the faster this cryptocurrency can be mined. In addition, Chia’s founder Bram Cohen argues that Chia claims to be more environmentally friendly than Bitcoin because the hard drives have significantly lower losses, which means less harm to the environment. Of course, critics are quick to point out one of the main drawbacks of Chia mining; solid-state drives will have a significantly reduced lifespan of only 80-160 days if you mine Chia, meaning that Chia mining is no more environmentally friendly than bitcoin mining.

The advent of Chia has also inevitably led to a shortage of storage devices and rising prices. miners started buying hard drives with capacities of 4-18 TB in April, and SSDs are also in high demand. There were also price increases for spare parts over in Hong Kong; depending on the model, the cost increased by $25 to $75.

And in addition to policy reasons, the supply chain has not been kind to the mining industry. GPU makers began actively fending off crypto miners in February. NVIDIA led the attack, trying to limit mining by releasing special programs for RTX 3060 cards, though miners have gotten around the restriction by using cheap HDMI port plugs and other methods. And NVIDIA’s latest GeForce RTX30 (Lite Hash Rate) will see its arithmetic performance drop by half when mining Ether, and its overall mining efficiency will drop by more than 50%.

However, it is interesting to note that NVIDIA has launched CMP HX gas pedals at the same time, despite repeatedly emphasizing that miners are not the main customer group. These products are specifically targeted at mining, as crypto mining processors (CMPs) have no external interface at all. It is simply not possible for users to connect their monitors to the processor and therefore cannot be used for gaming.

And Nvidia’s biggest competitor, AMD, has announced that it will not make special anti-mining modifications to its gas pedals. At the same time, the company says it will not limit mining arithmetic, leaving it up to the user to determine the use of the GPU’s arithmetic.

According to Coin Metrics statistics, ethereum miner revenue reached a record high of $2.35 billion in May, compared to $1.45 billion for bitcoin miners. Although mining revenue for various Altcoins is not counted, it should still be optimistic under the pre-hype expectations.

So despite the various compliance restrictions and supply chain challenges, jobs and profits will continue to drive the global mining industry. However, under China’s regulatory stick, many big domestic miners have moved their mines overseas, and I’m afraid only time can answer the question of how the domestic mining industry will continue to develop.

Posted by:CoinYuppie,Reprinted with attribution to:
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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