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Why can’t fish pools find miners (why are fish pool mining profits decreasing)?

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Why can\’t fish pools find miners? The reason why fish pools cannot find miners i

Why cant fish pools find miners (why are fish pool mining profits decreasing)?

Why can’t fish pools find miners? The reason why fish pools cannot find miners is because the mechanism of fish pools is to “lock coins”, and no one can control the coin price. In the mining pool, only users and developers can participate to obtain block rewards, while miners themselves control the token’s computing power and have their own voting rights.

If one day you can exchange 100 USDT for one Bitcoin, you can become a full-time miner. Because this money will not only affect your trading volume, right? So, I believe many newcomers will use this strategy, but it is actually just to make money!

Why can’t fish pools find miners? Why can’t fish pools mine? The two largest mining pools in the current market are OKEx, Huobi, and Gate.io. The first two are based on the Ethereum network, but since Ethereum 2.0 has entered the final testing phase, we believe that Ethereum 2.0 is still in the early stage of development (expected at the end of this year), so Ethereum still has a long way to go to achieve a fully mature user experience.

First, there is the issue of the exchange’s performance itself: the exchange needs to provide stable, reliable, and secure services. For example, if the exchange needs to provide a high leverage ratio for coin-based trading, it must meet certain high requirements to provide the service. Secondly, the security level of the exchange is very crucial—in general, centralized exchanges have a large number of hackers intruding, and once vulnerabilities occur, it will cause asset losses, thereby causing significant economic risks to users. Moreover, exchanges have certain risk control measures, which seriously threaten the security of the system.

Why are fish pool mining profits decreasing?

Editor’s note: This article is from Xiaozha Chat (ID: xiaonazha88) and is authorized to be reposted by Odaily Star Daily.

Fish pool profits are decreasing, why are many miners pessimistic about mining? We know that mining projects on Ethereum this year have encountered problems because the prices of these project tokens have fallen and the block rewards have been halved, resulting in a decline in mining revenue. This indicates that mining is a very complex task in the current blockchain field, but with the continuous development, updates, and improvements of technology, this model will continue to exist.

Currently, most mining machines are deployed overseas. However, many people also believe that foreign countries may not launch their own Bitcoin mining farms so quickly, but if they do, there is no need to do other things to attract new investors to join this industry. Therefore, since last year, a large number of fish pool miners have appeared in the market, and the fish pool has also become one of the most popular platforms among many exchanges. However, recently, the fish pool has stopped operating for a period of time, and new miners are still being added. So what exactly is the fish pool and why is its profitability so low? The main points are:

First, the rebound after the sharp drop in fish pool computing power is a normal phenomenon; second, in recent years, with the development and prosperity of DeFi, many old cryptocurrency companies have entered this market one after another. The fish pool is such a team that does it—generating transaction records and executing smart contracts through contract code automatically; the third aspect: most exchanges currently use contract code for development. For ordinary users, they don’t need to worry about contract vulnerabilities, and they can fix some problems in other ways, such as modifying cryptographic principles or letting others copy their accounts, etc. Although the fish pool is a very simple solution, various problems will arise during actual operation, especially large exchanges such as centralized exchanges. Due to the lack of regulatory requirements, it is difficult to guarantee or ensure the security of funds, making it difficult to achieve complete security. There are many reasons for the failure of fish pool mining. First, the fish pool is not designed to solve any single problem, but to avoid certain risks. In addition, the fish pool provides various incentive measures to improve its security. In addition to providing liquidity, there is also a strategy to help project parties who want to leverage their advantages and find more sources of profit. For example, in the past two years, Huobi Global announced its support for a new token, HUSD, issued by F2Pool. Huobi announced that it will airdrop 100,000 HT to all users who participate in the event and invite them to participate in HuobiGlobal activities. In addition, Huobi also plans to cooperate with multiple digital banks to create digital wallets and payment systems, helping more digital currency holders to easily participate in financial product innovation, thereby reducing investment thresholds and improving user experience. (Wu blockchain)

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