Against the background of the current global epidemic, the mining market has also suffered an unprecedented impact. Will the collapse of small miners further aggravate the monopoly in the mining market? This article will conduct an in-depth discussion on this issue, analyze the impact of the epidemic on the mining market from different angles, and explore possible market changes and countermeasures.

 The plight of small miners in the context of the epidemic

During the epidemic, economic activities around the world were severely affected, and the mining industry was no exception. As the foundation of the entire ecosystem, small miners face unprecedented challenges. Due to logistics disruptions and restricted personnel movement caused by the epidemic, the production and operations of small miners have been greatly disrupted. Some small mines even had to temporarily close, causing some small miners to lose their source of income.

 Monopoly trend in the mining market

As the epidemic continues to develop, some large mining farms have shown a relatively stable state. In contrast, they have stronger resource integration capabilities and risk tolerance, and can better cope with the challenges brought by the epidemic. Therefore, large mining farms may accelerate the increase in market concentration through mergers, acquisitions, expansion and other means, thereby further exacerbating the monopoly phenomenon in the mining market.

 The survival dilemma of small miners

For those small miners, the challenges brought by the epidemic are not only difficulties in production and operation, but more importantly, survival issues. Facing a sharp drop in income, some small miners are unable to afford high electricity bills and equipment maintenance costs, and their living space is severely challenged. This may lead to more small miners being forced out of the market, exacerbating the market's monopoly trend.

 Changes and Responses to the Mining Market

Facing the challenges brought by the epidemic, the mining market needs to make necessary changes and adjustments. On the one hand, the government can help small miners tide over difficulties and ensure the diversity and competitiveness of the market by introducing support policies; on the other hand, small miners can also improve their competitiveness through technological innovation, cooperation alliances, etc., and seek survival and development. room for development.

 Conclusion

Whether the collapse of small miners during the epidemic will intensify the monopoly of the mining market is a question worthy of in-depth consideration. Under the current situation, we need to pay more attention to and support small miners, promote the diversified development of the mining market, and avoid excessive concentration and monopoly of the market. Only with joint efforts can the mining market achieve healthier and sustainable development. It is hoped that after the epidemic, the mining market will regain new vitality and show a more prosperous scene.

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If small miners collapse during the epidemic, will it intensify the monopoly of the mining market? Nowadays, the era when one person can mine with one PC is long gone. As the price of Bitcoin continues to rise, the difficulty of mining has also increased. The cryptocurrency mining industry has been dominated by those with professional computer chips and high processing power. Dominated by mining groups – for example, Bitmain.

The recent turmoil in the cryptocurrency market has highlighted another area of concern: cryptocurrency miners, as miners are hardest hit by the drop in Bitcoin prices, making them increasingly less profitable.

According to data disclosed by mining company F2Pool, when the price of Bitcoin fell to $3,600 on March 12, the computing power of the entire Bitcoin network "did not shrink significantly."

But the company further stated: “We saw a downward trend in Bitcoin mining difficulty changes throughout the weekend, which means that some miners are shutting down their mining equipment. The mining industry, as always, is an industry of survival of the fittest, and miners need to It’s new mining equipment, cheaper electricity and lower rent.”

Now, small mining companies that cannot afford the high costs are shutting down operations, which may lead to large mining companies monopolizing the Bitcoin mining industry. However, a question that arises is: for smaller Bitcoin miners, is it possible to make a profit if they continue to mine?

At the time of writing this article, according to BTC.com data, the mining difficulty is 16.55 T (as shown above). This difficulty will make it difficult for small miners to continue operating.

Bitcoin miner and cryptocurrency investor Kris said in a recent podcast that it is difficult for "small fish" to survive in today's cryptocurrency industry. Kris said, “If you see the Bitcoin mining difficulty go to 16.55
T, that’s really crazy. Even though the global economy seems to be in chaos, in the Bitcoin mining industry you'll find that competition is still fierce. Now there is no room for the 'little fish', the whales are moving in and there may even be some hostile takeovers.
takeover). "

From this perspective, it seems that only large miners will be able to withstand the impact of market declines during the current coronavirus epidemic. But is that really the case? Will we really see large miners using their immense power to carve out massive market monopolies?

Regarding these issues, Kris believes that the situation of large miners may not be as strong as people think. He pointed out that under the new coronavirus epidemic, everyone at every level will be affected.

Kirs further said: “Large-scale mining farms have to be viable investments, right? But what most people don’t know is that these people are losing money while mining... When you have a large-scale mining operation of 5 megawatts to 10 megawatts, When using mining facilities, I didn’t want to sell the mined Bitcoin immediately because the price was too low, so I had no choice but to hoard the coins.”