One of the topics to be vigilant in the year 2020, it is with respect to the Halving of Bitcoin, which will affect particularly the miners. Currently, there are various opinions on the subject, suggesting that will be positive, negative, or even zero. However, all agree that they should be prepared for when the time comes. For this reason, Bitmain poses that will return strong.
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Context
Bitmain is one of the largest companies devoted to promoting the mining by the world, whether it is by selling machines or providing the knowledge. However, with the issue of the regulations for electrical power, alternative sources to mine online, and the volatility of the market has been in decline. Stands out, which makes reference to that has been losing the power that had accumulated during their first months of life. Noting that in its golden age the 50% of the teams ASIC were brand Bitmain. In addition, one of the centers of mining Bitcoin largest and most efficient come from the company. Another important point is the same internal organization, considering that they have had problems with their development teams. However, it has returned the CEO of the golden era of Bitmain, being the cofudandor, Jihan Wu.
Plans for the 2020 and Halving
Appearing as the CEO for the first time in months, Wu participated in a conference for the customers of Bitmain. Their intervention consisted of exposing the new strategy of the company to get back on track. Highlighting the event was for customers only, therefore, seeks to pacify them with the uncertainty of the halving. In essence, his speech seeks to influence the miners to stay with the product from Bitmain. Stating that the company will assume the risks associated with the cash flow, the price volatility of Bitcoin and the cost of electricity. In addition, it shows that the price of Bitcoin is going to shoot back to the event of Halving, however, the miners will be complicated.
The proposal
To achieve this goal, Bitmain has a new business strategy, which is focused on the current customers of the company. Beginning apparently Bitmain has replaced its sales strategy above, in which the customers had to pay the full amount upfront for the mining equipment due to the delivery of future, with a structure of staggered payments. For example, customers who pre-ordered between 100 and 999 mining equipment can reduce the 50 per cent. While investors larger that purchase more than 5,000 units can pay a minimum of 20 per cent in advance. The rest of the payment must be paid seven days prior to the date of actual shipping. But the result is that this would displace the pressure of the flow of short-term cash customers to Bitmain. A second tactic that Bitmain has plans to launch is directed to those who have farms, mines with resources of energy but still do not have enough equipment to operate at full capacity. The firm said it will offer an agreement of co-mining that lasts for more than a year for that farm operators mining rent their flagship products AntMiner S17 or T17. Bitmain would cover the cost of electricity throughout the year to 0.35 yuan ($ 0.05) by kilowatt-hour, while operators of farms, mining companies are still responsible for the maintenance. To change, Bitmain will retain 75 percent of the profits of mining and agricultural operators will take the 25 percent remaining. In particular, if mining revenues are less than the cost of the electricity, all coins mined will go to Bitmain. The following two tabs change content below. I am a student of economics, interested in innovation and technological development, always faithful to that tomorrow will be a better day.