Bitcoin enters the "death spiral"! What do you think of the currency circle?2018-12-29 18:33:19 16 ℃
The winter of 2018 is the winter of the virtual digital currency bubble, even if it is the "coin king" bitcoin, it is not immune.
The non-small market shows that bitcoin has fallen 43.99% in the past three months. After a recent plunge, at 14:5 on December 24, the unit price of Bitcoin rebounded to $4,201. In just a few days, Bitcoin fell more than 10%. As of 14:50 on December 28, Bitcoin closed at $3,580. The entire bitcoin seems to be caught in a "death spiral."
Data Map (Source: Visual China)
Bitcoin enters the "Death Spiral"
On December 3rd, Atulya Sarin, a professor of finance at Santa Clara University, published an article about the difficulty of mining. The paper, he believes, the recent decline in the difficulty of mining indicates that the bitcoin market has entered the "death spiral" stage.
What is the "death spiral"? It is the decline in bitcoin price that will lead to the loss of miners. The decline in computing power caused by the loss of miners will make the bitcoin network mining difficulty down, and the difficulty of mining will reduce the cost of mining. Finally, the cost of mining will decrease. The price has ushered in a new round of decline.
In layman's terms, for example, 10 people were mining, because the benefits were reduced, 5 people did not dig, and the remaining 5 people continued to dig. Because the rewards for each block of the Bitcoin network remain the same, five people dig as much as they can dig into the original double. Mining unions that dig more bitcoins sell off, which will further increase market supply and lower bitcoin prices.
According to btc.com website statistics, starting from November 2, Bitcoin network has been significantly reduced network mining three times (November 17, December 3, December 19) Difficulty, the overall decline was 32.8%. It was during this period that bitcoin prices fell in successive waterfalls. From $6,419 on November 14, to $3,201 on December 16, the highest drop was 50%. Looking at the well-documented history, the difficulty of this three consecutive major reductions has been traced back to 2011.
Because of the price drop, the miners withdrew, the bitcoin network's computing power and difficulty fell, and the calculation and difficulty fell, the consensus reduced, further aggravating the decline in the currency price. This "death spiral" is actually happening in the recent bitcoin price.
Source: screenshot of btc.com page
Let's go on like this, the miners have to finish?
In fact, the "death spiral" is not only reflected in the price of bitcoin, but also in the recent currency circle and mining circle.
The previous daily economic news () reported that the world's second-largest mining giant Jia Nan Zhizhi launched the ace model A851 in July this year, priced at 2,900 yuan, buy three get one free in November, At the beginning of December, it will drop directly to 1,050 yuan, which is equivalent to another 50% discount. The world's largest mining giant, Bittland, compared with the beginning of the year, a number of models are less than a fold sale, the lowest sale price is only 300 yuan.
In addition to the sale of mining machines, recently, a number of media reports, the former miners of the giants of the mainland, are laying off workers on a large scale. According to the report, on December 22nd, the number of employees certified as “Beijing Bit Continental Technology Company” posted on the workplace social platform, saying that Bitland will lay off employees on December 24. As for the layoffs, Dovey Wan, the former managing director of Danhua Capital, quoted Ethereum World News as a report titled “Bitland or Painfulness” and said that the layoffs in Bitland may be as high as 50%.
On December 24th, Bitcoin officially responded to the layoffs in Beijing. "There is no rumor about the outside world. It is based on the development of the business in the mainland and the normal personnel adjustment at the end of the year. We will continue to welcome you in the future. Joining talents from all walks of life."
Even if it has responded, but with the departure of a large number of bitcoin miners, the market demand for mining machines has dropped sharply. Layoffs for survival, or continue to operate at their original size, is clearly a topic that does not require debate.
Data Map (Source: Visual China)
The company where Mr. Zhang is located is professionally dug The mining company, the daily economic news () reporter contacted Mr. Zhang. Mr. Zhang said, "We have run 2,000 machines now, 70% of the machines have been shut down, and we have opened a machine that digs large coins." As for Bitcoin, Mr. Zhang told, "The lowest machine for digging BTC now, It is Avalon's A921 and A851. Our S9 was sold early, and now it seems to be a machine with more than 20T, and it can run."
Mr. Zhang revealed that when the price of the currency was high, Zhang Mr. Company "has millions of electricity bills a month, and now it is hundreds of thousands a month." Even though the current use of ultra-low electricity bill of 0.45 yuan / kw, but Mr. Zhang still lamented, "electricity is expensive, ready to change places" "If the price continues this way, all miners have to die."
Edit | Zhao YunInternship Editor| Yi Qijiang
|Daily Economic News nbdnews Original Articles|
Guess you like
- 2018-12-24Will the housing prices continue to rise in 2019 when the real estate regulation policy is released?
- 2018-12-16How many people have a monthly salary of 5,000 yuan? Not as much as you think
- 2018-12-14By investing to pull the economy back and forth, where is the future reform?
- 2018-12-12Just now, Dong Mingzhu denied that it is an iron cock: Gree does not pay dividends in 2017 is more for 2018
- 2018-12-10"Double-width cycle" is coming soon! If so, the property market is likely to usher in a retaliatory rebound
- 2018-12-08Live | 2018 Sanya Finance International Forum
- 2018-12-07There are 450,000 direct sales! The second-hand housing market in this first-tier city is cooling down.
- 2018-12-07In the first half of 2018, global house prices rose by 50! Why are these 9 mainland second-tier cities on the list?
- 2018-12-06In the 2019 US stocks, Hong Kong stocks and A-shares, how should investors choose?
- 2018-12-05The Ministry of Commerce responded to the China-US economic and trade consultation: the meeting was very successful and confidence in implementation
- The country's 65 million houses are vacant? The truth behind it is even more cruel!
- The United States will investigate 244 foreign companies, including 213 Chinese companies such as Baidu and Ali. Why?
- People are not as good as days, slamming 47% in 6 days, Shanghai Lai Shi capital chain is in a hurry
- Xu Jiayin's wife made her first public appearance.
- The oil price has dropped by 30%. The picture shows the small plot behind the big drop.
- Review: The two cities fluctuated within a narrow range throughout the day, the Shanghai index rose 0.37%, the communications equipment sector led the rise
- Buy Huawei mobile phones, subsidies! Buy an apple, fine! The Shenzhen manufacturer who supports Huawei is coming to the head.
- "Double-width cycle" is coming soon! If so, the property market is likely to usher in a retaliatory rebound
- Why do multinational companies do this in China?
- Live | 2018 Sanya Finance International Forum