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Why is the Shenma mining machine not powerful (reason for unstable computing power of the Shenma mining machine)?

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Why is the Shenma mining machine not powerful? The performance of the Shenma mi

Why is the Shenma mining machine not powerful (reason for unstable computing power of the Shenma mining machine)?

Why is the Shenma mining machine not powerful? The performance of the Shenma mining machine has always been below expectations, especially in a highly competitive market.

It is said that the price of Shenma’s S19Pro mining machine has dropped to its lowest, but it still has issues.

The reason why the Shenma mining machine can achieve such results is because the prices of other mining machines on the market, such as the Shenma M20 series, Xindong T17, and Avalon A10 series, are relatively cheap (about 20% lower than mainstream brands). If we calculate based on this standard, these machines can be shipped for about 1 cent per unit in electricity costs. However, the cost will definitely not be high because the prices of these machines will directly increase.

So, what does “not powerful” mean? It means that the coins mined are not profitable due to the high difficulty of Bitcoin mining.

According to the latest news, Shenma has announced that it will begin the delisting process in the near future and is expected to complete the upgrade process before April 2020.

Therefore, there are two reasons for the Shenma mining machine not being powerful:

1. The Shenma mining machine itself has some technical issues, such as the need to design a new ASIC chip and to reduce the production cycle of graphics cards, making them easier to purchase and sell while avoiding being eliminated by certain large manufacturers. In addition, since July of this year, Shenma mining machines have experienced this phenomenon many times. 2. With the development of cryptocurrency, more and more traditional enterprises are entering this field and paying more attention to the blockchain industry. 3. For ordinary investors, investing in virtual assets requires paying attention to several points: 1) Essentially, they want to buy valuable products or services rather than simply speculating on digital assets. 2) Considering the risks brought by the current Bitcoin mining boom and the potential participation of various financial institutions and individuals in the future.

Reasons for the unstable computing power of Shenma mining machines

Editor’s note: This article is from Deepchain (ID: deepchainvip), written by Chen Jiachen and authorized by Odaily Star Daily for reprint.

January 19, 2018, was the year of Bitcoin halving, reaching its peak at block height 1050000, and then began to fall to near the recent low; 11 days have passed, and the total network computing power has reached about 13T, but it has dropped to the lowest point in nearly 9 months since mid-July. Miners have been dissatisfied with the rising price of tokens in recent weeks because the mined tokens are in a loss, resulting in the unstable computing power of Shenma mining machines. Why? There are two reasons:

The first reason is the high price volatility, resulting in significant price changes. Especially for novice investors, the high investment cost and inability to purchase new machines have caused significant losses. Therefore, many friends tend to be more cautious when using old mining machines. However, with the rapid development of the market, the demand for this type of customer is also increasing. The second reason is the increasing competition between mining pools. Some smaller cryptocurrency exchanges have launched their own digital asset trading platforms in order to provide better market access. If they can obtain more funding support and channels from mainstream financial products, these users will be attracted to enter the market. Currently, some large institutions are laying out in the blockchain field, such as Mastercard, which has become a major partner; Bitmain is about to release Bitcoin ATMs for retail users; Canaan is also considering going public. Although these two listed companies have not announced the issuance of their own stocks, they do plan to raise more capital through public sale of some shares. Of course, one thing worth noting is that according to previous reports, the cooperation between Bitmain and Bitmicro is only temporary. It is not known whether other companies will go public in the near future.

The second and most important factor is the competition between mining pools. In previous articles, it has been mentioned that Antminer S19Pro mining pool from Bitmain has significant uncertainties. This product has been average since its launch in early 2020 and was officially put into operation in June this year, previously known as the Antpool mining pool. At the end of August 2018, Bitmain announced that it would complete the third update and increase new ASIC chip capacity by the end of this quarter, and it may subsequently undergo comprehensive upgrades, including the new Ant A3 mining pool and the latest Shenma M30 series mining machine, and so on. However, the upgrade of this version is expected to take no more than 12 hours and will be further delayed by about six months. In addition, it is estimated that high-end graphics cards under Bitmain’s Antminer S17+ and Xindong Z15s have not been affected.

The third and most significant problem is that there are many reasons for the shutdown of mining machines in the current market situation. For example, during the high-water period last year, we could see that electricity prices in most regions were rising, and there was a large amount of electricity flowing to Sichuan and other regions almost every day.

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