Reporter Xie JingEvery edited section refiningBitcoin prices have reached a new milestone! On November 18th, Bitcoin broke through $18000, marking the first time since December 2017. According to non niche data, Bitcoin has increased by 13
Reporter Xie Jing
Every edited section refining
Bitcoin prices have reached a new milestone! On November 18th, Bitcoin broke through $18000, marking the first time since December 2017. According to non niche data, Bitcoin has increased by 13.38% in the past 7 days, and its growth rate this year has been 144.7%. As of the reporter's completion, the price of Bitcoin was $18055.88 per piece.
Image source: non small official website
Bitcoin prices exceed $18000 today
The unit price of Bitcoin broke through 18000 US dollars at one fell swoop today. The Cryptocurrency market is hot, and many institutions are running into the market. Kang Luzhi, a senior analyst at Huo Coin Research Institute, believes that the main driving factor for this price surge seems not to be hot money and retail investors, but rather the formation of a certain degree of fear of missing out among institutions.
From several signs, we can confirm the above point of view. First, Bitcoin of Greyscale Trust continues to increase its holdings. Now, Litecoin, Ethereum and other mainstream currencies have also begun to increase their holdings to varying degrees. Secondly, various compliance agencies have recently continued to launch Bitcoin funds or apply to the SEC for investment in Bitcoin. Another issue is the continuous decrease in data held on the Bitcoin chain of mainstream exchanges.
Kangluzhi believes that institutional investors tend to prioritize holding in their investment strategies. "Due to compliance requirements, the increased bitcoin holdings will not be kept in the exchange account for a long time, but will be kept in a compliant custodian institution. At present, the increase in holdings only in grayscale also exceeds the daily output of bitcoin. The real deflation rate of bitcoin may be far greater than the market expectation. The bitcoin chips in the Secondary market continue to decrease, that is to say, the chips determining the pricing of bitcoin are fewer and fewer, and the price rise may be more difficult than expected The elephant is low, and the future market growth may far exceed expectations
However, Rui Dalio, the founder of Bridgewater Associates, was puzzled by the rise of Bitcoin. It is reported that Dario has repeatedly criticized Bitcoin, but last night, Dario tweeted five times to express his views on Bitcoin and expressed his willingness to accept correction.
In the view of researchers at the China Blockchain Research Institute of Coin An, the surge in Bitcoin this time is mainly caused by the intervention of major US institutions, such as the continuous purchase of BTC and PayPal support by grayscale, and most of it may still be purchased by US retail investors. It believes that this trend should continue until a large influx of domestic retail investors.
Mining machine prices are greatly influenced by BTC prices
And with the sharp rise in Bitcoin prices, what is the market for mining machine manufacturers? What impact does the income of miners have? Mining machines are a barometer of Bitcoin prices, and industry insiders have admitted that due to internal changes in mining machine manufacturers and production capacity bottlenecks, the overall mining machine market has been relatively difficult this year. But with the soaring price of BTC, the demand for mining machines has also increased. However, there is still a shortage of new machine supply in the market, and the second-hand market for mining machines is currently hot.
The reporter noticed that on the BTC.com official website, Ant Mining Machine currently ranks first in terms of revenue for mining machines with BTC currency, with a daily output of $15.8, a shutdown currency price of $6947.04, and an electricity bill expenditure of $5.46.
The price of mining machines will increase with the BTC price, and both the increase and decrease are relatively large. For example, in mid 2019, the price of Bitcoin was around 13000 yuan. At that time, mining machines such as the s17 and m20 were generally over 20000 yuan. However, at the beginning of this year, when the BTC was around 7000 yuan, mining machines were less than 10000 yuan, "said an industry insider. Recently, mining machines have also seen significant price increases, but miners' fiat currency based earnings have not shown significant growth yet
The industry insider stated that the price of Bitcoin is not directly proportional to the income of miners. "The price fluctuation of Bitcoin is relatively large, which will be smoothed in the miners' side." When BTC rises sharply, the income of Bitcoin legal coins rises. In this case, some old mining machines are started (such as S9 series mining machines), and the computing power of the whole network, BTC blocks and daily output increase. According to the production formula, the income fluctuations of miners are actually relatively small
If a large amount of computing power is added to the network, resulting in an increase in the difficulty of the entire network, it needs to be adjusted for 2 or 3 difficulty cycles, and the miners' profits will return to the previous level. In fact, the existence of difficulty mechanisms has given rise to BTC, BCH, and BSV machine gun pools, and many mining pools' computing power will switch between different networks to maximize profits. However, it is also because of the existence of difficulty adjustment mechanisms, the miners' profits are relatively stable, regardless of the sudden rise or fall of BTC It is difficult to experience significant fluctuations The industry insiders mentioned above said.
In addition to Bitcoin machines, some miners have admitted that their current focus is still on ETH based graphics card mining machines. ETH had relatively high profits a while ago, and mining machines were quite expensive and out of stock. Now that prices have decreased, cost-effectiveness can be considered more cost-effective
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