Especially the large-scale listing of 7nm mining machine, its mining cost is about 26,000 RMB, so miners still have a large profit margin. Due to the needs of daily operation and maintenance of mines, there will inevitably be some selling pressure, and the computing power will be reduced, which will reduce the currency circulating in the market.

2. In order to sell new mining machines, mining machine manufacturers may lower the price of coins and eliminate old mining machines, thus increasing the sales of new mining machines.

Take the ant S9 as an example. When the computing power is increased to 100EH/S, as long as the currency price reaches about $7,000, the old mining machines above Ant S9 will be eliminated. As long as the currency price is maintained for about 2 months, miners and miners will be forced to clean up old mining machines and buy new ones with large computing power.

At present, the market is generally optimistic about sharing the market equally. In order to reduce the resistance to decline, it is likely to experience a wave of decline.

In order to reduce the main force of decline by half, the market is likely to experience a wave of decline, and miners and miners are likely to take hedging measures to lock in the benefits of mining, which will increase the downward resistance of the market and increase the upward risk to some extent.

That is to say, behind the decline in computing power, due to the downward trend of currency prices and the commissioning of 7nm mining machines, stimulated by the increase in profit margins, the market has bought a large number of new mining machines to invest in mining, thus causing the decline in bitcoin computing power.

As we all know, the sharp rise in computing power is the result of the rise in currency prices, not the reason for the rise in currency prices. On the contrary, the rapid increase of computing power caused by the commissioning of the large computing power mining machine has increased the selling pressure of Bitcoin and increased the downside risk.

Does the decline in bitcoin computing power affect the price?

First of all, if the price of BTC can be maintained, the profits of miners who are still mining will increase, with the increase ratio exceeding 15%. For a simple example, if the electricity cost of miners was 10 yuan before, the profit could be 10 yuan. After reducing the difficulty, you can dig more coins of 15%. Some time ago, some bosses in the currency circle said that the mine and some miners might be in the tray, because the price of BTC is about to fall below their shutdown price. Now due to rising profits, their bottom line may be lowered, and the price of Bitcoin may be negative in the short term, but there are still many factors that affect the price of BTC, so we can wait and see.

What does the decline in bitcoin computing power mean? The above is the relevant content of what it means to reduce the computing power of Bitcoin. In fact, the computing power of digging bitcoin has been solved, which can ensure that the longest chain has the largest workload in the whole network and will not be changed. This also realizes that the Bitcoin system is solid and will not be attacked, which means that the computing power of Bitcoin is to maintain the security of the Bitcoin network, so the computing power of Bitcoin is very important for Bitcoin, and for miners, the computing power of Bitcoin is also extremely important.

Bitcoin mining does not make money, and there are five key data that have an impact on it: bitcoin price, computing power, electricity fee, mining difficulty of the whole network, and mining machine cost price. The latter four factors interact with each other, which may eventually have an impact on the price of BTC.

On April 6th, a paper entitled "Policy Assessment on Carbon Emissions and Sustainability of Bitcoin Blockchain Operation in China" was published in Natural News. This paper from China Academy of Sciences and Tsinghua University scholars has attracted the attention of China and even overseas media. Under the national goal of "double control", coal-fired and electric mines in Xinjiang and Inner Mongolia were forced to stop running. After the introduction of regulatory requirements for bitcoin mining, the computing power of bitcoin network has plummeted by 20% recently.

So what impact does Bitcoin have on miners after the computing power of the whole network plummeted? First of all, let's explain here what is the adjustment of mining difficulty. When Satoshi Nakamoto invented Bitcoin, he wrote the logic of difficulty adjustment in the code, which automatically happened at each node independently. The logic is: Bitcoin is dug every 10 minute, and adjusted every 20 16. In general, the difficulty will be adjusted every 14 days. The difficulty of mining is adjusted according to the whole network computing power of Bitcoin in the last cycle, so the difficulty is related to the whole network computing power, and there is a certain time lag. Generally speaking, the difficulty adjustment of mining is to adjust the speed of mining (bitcoin). The higher the difficulty, the slower the mining, the lower the difficulty and the faster the mining.

As can be seen from the above figure, it is predicted that the mining difficulty will be reduced to 2 1.86t on May 30th. It is not difficult to guess that there are two obvious reasons for the recent decline in difficulty: 1, national supervision, rectification of virtual coin mines in Inner Mongolia, Xinjiang and other places, and the suspension of mines has led to a decline in the computing power of the whole network. 2. The price of 2.BTC has fallen sharply, resulting in the old mining machine no longer making money. The shutdown of this part of the mining machine will lead to the decline of the computing power of the whole network.

So what is the relationship between the computing power of the whole network and the difficulty of mining? There is a logic here. The decrease in the computing power of the whole network indicates that fewer people dig, which leads to an increase in the speed of excavation, that is, the difficulty of excavation is reduced. So can we understand it this way: the computing power of the whole network is reduced, and it is easier for miners to dig bitcoin?

It's easier to dig. Everyone else has made it.