After the plunge on May 19, the global crypto market has not fully recovered. Inner Mongolia’s ban on the mining industry, Tesla CEO Musk’s repeated accusations that BTC mining is not environmentally friendly, etc., the currency price is sluggish, many people in the industry believe that the bear market has come, and the encryption mining industry is also in jeopardy.

In fact, the global mining industry has been facing many problems since February this year. The skyrocketing currency prices have attracted more enthusiasts to enter the mining industry, and the competition in the mining industry is fierce; and graphics card miners have to compete with gamers for GPUs. For example, in the United States, some The price of the graphics card has increased by about 120%. The shortage of spare parts has exacerbated the crisis in the mining industry, and the new crown epidemic has made the mining industry even worse.

With the emergence of new coins such as Chia (XCH), miners are looking to other mining methods. Taking Chia as an example, mining this cryptocurrency requires the use of solid-state drives, which are much cheaper than GPUs.

Chia uses the available space on the device storage, the more free space the faster this cryptocurrency can be mined. In addition, Chia founder Bram Cohen believes that compared to Bitcoin, Chia claims to be more environmentally friendly, because the wear and tear of the hard disk is significantly lower, which means that it is less harmful to the environment. Of course, critics were quick to point out one of the major disadvantages of Chia mining. If Chia is mined on a solid-state drive, its service life will drop dramatically, down to only 80-160 days, which means that Chia mining is no more expensive than Bitcoin mining. more environmentally friendly.

The emergence of Chia has also inevitably led to a shortage of storage devices and an increase in prices. In April, miners began to purchase hard drives with a capacity of 4-18 TB, and SSDs were also in strong demand. There has also been a price increase for spare parts in Hong Kong; depending on the model, the cost has increased by 25 to 75 US dollars.

In addition to policy reasons, the supply chain is not friendly to the mining industry. GPU makers have been aggressively fending off crypto miners since February. Nvidia spearheaded the attack in an attempt to limit mining by issuing special programs for RTX 3060 cards, though miners have been circumventing this restriction by using cheap HDMI port plugs and more. The latest GeForce RTX30 (Lite Hash Rate) launched by Nvidia will reduce its computing performance by half when mining Ether, and the overall mining efficiency will drop by more than 50%.

However, it is worth pondering that although Nvidia has repeatedly emphasized that miners are not the main customer group, it also launched the CMP HX accelerator at the same time. These products are specifically aimed at mining, as the Crypto Mining Processor (CMP) is completely interface-free. It is simply not possible for the user to connect a monitor to the processor, so it cannot be used for gaming.

Nvidia's biggest competitor, AMD, has announced that it will not make special anti-mining modifications to its accelerators. At the same time, the company stated that it will not limit the mining computing power, and users will decide the computing power usage of the GPU by themselves.

According to Coin Metrics statistics, the revenue of Ethereum miners reached a record high of $2.35 billion in May, while the revenue of Bitcoin miners was $1.45 billion. Although the mining revenue of various Altcoins has not been calculated, it should be relatively optimistic under the expectations of the previous hype.

Therefore, employment and profitability will continue to drive the development of the global mining industry despite various compliance restrictions and supply chain challenges. However, under the supervision of our country, many large domestic miners have moved their mines overseas. I am afraid that only time will be able to answer this question as to how the domestic mining industry will continue to develop.