ANTMINER Insight 2022

The Status of the Bitcoin Mining Industry

In recent years, Bitcoin mining developed from the participation of a few geeks and programmers to a hot investment target with a current market cap of $175 billion.

Through fluctuations in both the bull market and bear market activities, many traditional entrepreneurs and fund management companies continue to play a key role in the mining industry today. Fund management companies no longer use traditional models to measure mining. In addition to introducing more economic models to measure returns, they have also introduced financial instruments such as futures and quantitative hedging to reduce risks and increase returns.


The Price of Mining Hardware

For many miners who have entered or who are considering entering the mining market, the pricing of mining hardware is of key interest.

It is commonly known that the price of mining hardware can be divided into two categories: factory price and circulating price. Many factors dictate these pricing structures with the fluctuating value of Bitcoin, a key factor in both the new and second-hand hardware markets.

The actual circulation value of mining hardware is affected not only by the quality, age, condition, and warranty period of the machine but by fluctuations in the digital currency market. When the price of a digital currency rises sharply in a bull market, it can cause a short supply of miners and generate a premium for hardware.

This premium is often proportionally higher than the increase in the value of the digital currency itself, leading many miners to directly invest in mining instead of cryptocurrencies.

Likewise, when the value of a digital currency is in decline and the price of mining hardware in circulation begins to fall, the value of this decrease is often less than that of the digital currency.

Acquiring an ANTMINER 

At the moment, there are excellent opportunities for investors to enter the market and own ANTMINER hardware based upon several key factors.

In the lead up to the recent Bitcoin halving, many established miners and institutional investors held a ‘wait-and-see’ attitude on the effects on currency prices as well as the total computing power of the network. Since the halving occurred on May 11, 2020, the total monthly network computing power fell from 110E to 90E, however, the value of Bitcoin has enjoyed a slow rise in value, remaining relatively stable and free from the anticipated sharp fluctuations.

Since this halving, those who have purchased new mining hardware can expect an appreciation of both the machine and Bitcoin over the next years until the next halving. As we move into this new cycle, revenue generated by Bitcoin will stabilize and profits will likely remain constant throughout this period.

Post time: Mar-02-2022