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Who continues to benefit behind the myth that Musk brings goods to Bitcoin and Dogecoin to create wealth?



Since 2021, the stories of overnight riches brought by Bitcoin (BTC), Dogecoin (DOGE), SHIB, etc. have caught people's attention.

However, it is commonplace for cryptocurrencies to skyrocket and plummet, and no one can tell how many bubbles are behind the carnival in the currency circle.

The birth of cryptocurrency has spawned a large number of computing chips used to "develop" cryptocurrency around the world. Since the production process of Bitcoin is called "mining", such chips are also called mining chips. The fanaticism of coins also gave birth to the prosperity of the mining machine market. In the gold rush story, the business of "digging for gold" is obviously not as safe as the business of "selling shovels".

For mining machine chips, the pursuit of computing power is endless. From GPU, FGPA to ASIC, miners all hope to obtain higher computing power with lower energy consumption and improve production efficiency. Some people say that the field of mining machine chips is dominated by China, which is rare in the chip industry, so what is the truth? Nvidia, Bitmain, Canaan, MicroBT and other mining machine chip manufacturers, who is the "king of mining machine chips"?

Musk called Twitter a "universal application" with an average daily increase of more than 2 million registered users, a new high: News on November 27, local time on the night of November 26, Musk tweeted that Twitter is a "universal application" (everything app), and said that the number of registered users and the active-zce time of users have reached record highs. He said registrations averaged more than 2 million per day for the week ended Nov. 16, up 66% from the same period in 2021. Musk expects Twitter to exceed 1 billion monthly active-zce users within the next 12 to 18 months. (Golden Ten)[2022/11/27 21:05:07]

The price of mining machines fluctuates with the price of currency, and mining machine manufacturers "sit back and reap the benefits".

If you want to obtain cryptocurrency, there are two ways, one is to trade and buy, and the other is to mine yourself. Mining can be regarded as the primary market for cryptocurrency transactions, and it can also be regarded as the upstream link of this industrial chain.

Just like in regular mining, in cryptocurrency mining, the job of miners is to mine resources. The reward for mining resources from the ground is the cash value of the resource, while for blockchain miners, cracking puzzles can be rewarded with corresponding cryptocurrency rewards. Mining costs mainly come from mining machines and electricity.

Musk communicates with Twitter advertisers to reassure executives after chaos: Elon Musk will meet with some of Twitter's big advertisers and marketing Reassure executives after a chaotic situation arises. Musk had threatened a "thermonuclear name & shame" campaign against advertisers who left Twitter after it was acquired by Musk for $44 billion.

Musk will chat with vetted advertisers via Twitter Spaces. WPP, one of the world's largest advertising companies, also participated in the meeting, according to anonymous sources familiar with the matter. The subject of the discussion was unclear, but Musk said last week that Twitter was facing a "significant drop in revenue" as advertisers paused activity on the platform. Since Musk completed the acquisition, reports of hate speech and abuse on Twitter have increased. (The Washington Post) [2022/11/10 12:40:23]

Not to mention that Bitcoin has achieved an increase of tens of millions of times since its release. From the beginning of 2020 to May 14, 2021 alone, its increase was as high as 569%, reaching a peak of 61,200 US dollars per coin; 2829%; and Dogecoin, the biggest dark horse this year, has risen by 5192% since the beginning of 2021.

Musk seeks to prevent the court from fast-tracking the acquisition of Twitter: Jinse Finance reported that Tesla CEO Elon Musk's lawyers filed a motion with the Delaware Chancery Court on Friday against Twitter's request for a fast-track trial of the $44 billion court case. In the U.S. dollar acquisition case, Musk’s lawyers stated in documents submitted to the court that the court should reject Twitter’s “unreasonable request”.

"Twitter's sudden demand for speed, following two months of delay and confusion, is its latest tactic to bury the truth about spam accounts in order to keep the accused in trouble," the filing said. (Reuters) [ 2022/7/16 2:16:48]

In addition to the rising price of virtual currency, what drives miners to increase their investment is the sense of urgency that the currency is getting less and less, and it is becoming more and more difficult to mine.

For example, for Bitcoin, the reward was initially set at 50 bitcoin currency rewards per block. On November 28, 2012, the reward was halved to 25; on July 9, 2016, it was reduced to 12.5; on May 11, 2020, it was reduced to 6.25 again ; by 2024, it will be halved again. This halving process will repeat until the total amount of bitcoin currency rewards issued reaches 21 million. Fewer rewards mean more difficult mining.

The hacker group Anonymous has targeted Musk and criticized him for manipulating the encryption market in the challenge video: The hacker group Anonymous has released a malicious message on Youtube challenging Tesla and SpaceX founder Elon Musk (Elon Musk). In the video, Anonymous criticized Musk for "nonsense" on social media and shook the cryptocurrency market, saying: "You may think you are the smartest person, but now you have met your opponent. We are Anonymous! Looking forward to it Us." But the matter didn't end there. An anonymous unauthenticated user also commented on one of Musk's tweets on Twitter, saying "Anonymous hid you, what's your comment?" and attached a link to the above video. Afterwards, the user tweeted again: "Elon Musk hid when Anonymous tweeted." At this time, it can be found that Musk's Twitter avatar has turned into pure black. Musk has yet to comment on the hack warning. (SPUTNIK)[2021/6/6 23:15:41]

Earlier, only professional and dedicated miners were responsible for mining. As some companies purchase more professional mining machines and set up mining farms in areas with lower electricity costs, the entry threshold for retail investors is getting higher and higher, and individual miners are no longer competitive. Therefore, miners join the open mining pool to combine resources to compete effectively, and the coins dug out of the mining pool are distributed to each miner according to their contribution. Some people participate in mining through mining cloud service platforms such as BitDeer.

Voice | Bitcoin Jesus: Hope Musk knows that BCH is the real Bitcoin: Bitcoin Jesus said: "Musk is a very smart guy. I know Musk likes cryptocurrencies, and I hope he knows that Bitcoin Cash is the real Bitcoin." currency.” [2018/10/31]

No matter how the mining mode changes, what remains unchanged is the demand for mining machines. Now the mining machine market is in a "seller's market". On the one hand, as the prices of a large number of cryptocurrencies have risen, the market demand for high-quality, high-performance mining machines has increased; on the other hand, the intensified chip shortage since last year has also suppressed the supply of mining machines. The combination makes high-quality, high-performance mining machines expensive and hard to come by.

At the same time, the number of suppliers of high-quality and high-performance mining machines is limited, which determines their high status in the market. Due to the high volatility of bitcoin prices, suppliers are often reluctant to commit to long-term contracts with fixed pricing terms, so the price of such miners is usually closely related to the cryptocurrency price and has similar volatility.

It can also be seen from this that, unlike people who think that speculators can obtain higher excess returns, while the income from selling machines is relatively fixed, high-quality mining machine chip manufacturers and mining machine companies actually have a high position in the industrial chain. Pricing power is also better able to lock in profits from rising cryptocurrency prices.

Nvidia, Bitmain, and Microbit each have their own strengths and weaknesses.

Cryptocurrency mining machines have gone through the era of CPU, FGPA, GPU, and ASIC mining. After rounds of evolution, CPU and FGPA are no longer mainstream, and GPU and ASIC are gaining popularity.

In the GPU field, NVIDIA is the leader. In the fourth quarter of 2020, the cryptocurrency mining business brought Nvidia $100-300 million in revenue, accounting for 2%-6% of its total revenue.

Previously, miners would increase the computing power of computers by superimposing graphics cards on them. Nvidia GPUs were looted for a time, and miners bought its game chips for mining, which made gamers unable to buy GPUs. In order to balance the market and obtain higher returns, on February 19 this year, Nvidia stated that it will launch a series of GPU products professionally used for Bitcoin mining, and the main purpose is to meet the special needs of miners. At the same time, Nvidia will also launch the CMP series of dedicated chips for Ethereum mining. It is reported that the CMP series will not have the ability to calculate images, but will have a lower peak core voltage and frequency, which will improve mining performance and efficiency.

However, due to the lack of competitiveness in computing power, GPU is suitable for mining Ethereum and some other virtual currencies, but it has no advantage over ASIC in mining Bitcoin. ASIC is currently the mainstream method of Bitcoin mining.

Completely different from other chip industries, Chinese mining machine ASIC chips have almost monopolized the bitcoin chip business. Big players in this field include Bitmain, Canaan, and MicroBT.

According to the third-party evaluation data, among a large number of Bitcoin mining machines, if the payback time is used as a measure, the first echelon is within 300 days, the second echelon is 300-600 days, and the third echelon is more than 600 days . Then, the first echelon is mainly Antminer S19, Ant T19, Whatsminer M30S, Whatsminer M20S and Avalon 1146, and the second echelon includes Ebit E12, Jaguar F5M, Innosilicon T3 and other mining machines.

In terms of computing power, the Antminer S19 and Whatsminer M30S series are far ahead. Among them, the Antminer S19 is developed and produced by Bitmain, and the Whatsminer M30S is developed and produced by MicroBT. These two are currently mainstream mining machines. Judging from the existing products, the two R&D strengths are equivalent.

However, Bitmain (BTCM.N) has great research and development potential. According to Bitmain’s annual report, it acquired a mining machine manufacturer in 2021. The manufacturer and MediaTek jointly developed mining machines. The existing mining machine products include 7nm ASICs. Mining machines will be delivered by the end of April 2021.

From the perspective of sales and supply, the official websites of Bitmain and MicroBT respectively show that the Antminer S19 and Whatsmart M30S series have been sold out. Bitmain’s 7nm chips for mining machines are manufactured by TSMC, and MicroBT’s 8nm chips are manufactured by Samsung. It is temporarily impossible to know from public information whether the upstream chip manufacturing capacity will be cut.

It is worth noting that, according to Bitmain's annual report, in February 2021, it signed a final purchase agreement for 5,900 bitcoin mining machines, with a total price of approximately RMB 55.2 million. According to the framework agreement, it is agreed in principle to purchase up to 10,000 bitcoin mining machines in 2021. These miners will all be used for Bitcoin mining to generate income.

Therefore, it is difficult to judge whether the out-of-stock is due to the lack of cores, or because the mining machine manufacturers use their own mining machines for mining. What is certain is that the "chip shortage" makes it more difficult for other mining machine chip manufacturers to obtain chip production capacity, and it may be an opportunity for leading companies to seize the market.


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