Wang Wenguang, Head of Bit Deer Data Center: The trend of mining out of the sea is irreversible, and the domestic computing power will decline significantly

On April 21, the Second Bitdeer 421 Water Festival and Mining Ecology Conference was held in Beijing, which was jointly organized by Bitdeer Group and RuralBlockBeats, and jointly organized by Bitdeer Group, Mining++, BTC.com, MatrixPort and other leading brands.

During the conference, Wang Wenguang, head of the data center, was interviewed by Rupa Blockbeats. He stressed that the future of the mining industry lies overseas, and that the domestic computing share will drop to 50% or less after this bull market. At the same time, Bitfawn has already laid out overseas mining, which can help the majority of miners to achieve the sea.

Wang Wenguang, Head of Bitfawn Data Center & NBSP;

The following is a transcript of the conversation between Rhythm Blockbeats and Wang Wenguang:

Law Blockbeats: Last time you were interviewed as the head of a mine, this time you are the head of a data center. Is there any change in your job from before?

Wen-guang wang:This is because Bit Deer Group's upgrade of services for our entire mining industry. We actually follow the current trend of regularization of mining, and shift the mining services to the direction of data center. At the same time, we also hope that this industry will move toward the direction of formal formation of data center, so we name it "data center". In fact, the specific work content is almost the same as before, or to provide you with mine search, design, construction, mining machine operation and maintenance services.

BlockBeats: This year, a local security inspection led to a sharp fall in the computing power of the whole network of Bitcoin. The domestic computing power still accounts for a large share. You once said in an interview that "the future of the mining industry lies overseas".

Wen-guang wang:When I said that, it was combined with the general trend of this bull market, and I had that judgment. In the recent period, all mining enterprises in some areas have been shut down for various reasons, which further confirms our previous judgment that the future of mining is overseas.

After this bull market, the distribution of computing power will change even more. Overseas computing power may account for more than 50%, while domestic computing power will become less and less. At present, domestic computing power accounts for about 70 percent. After this bull market, the domestic and foreign computing power ratio is about 50:50. This is an irreversible process.

Routine Blockbeats: Are Chinese miners moving out, or are there more overseas miners?

Wen-guang wang:Both. Recent events are encouraging domestic miners to move abroad, and big companies need a stable environment to grow in the long run.

At the same time, many overseas listed mining enterprises desperately buy mining machinery, mining machinery manufacturers in the recent sales, overseas mining machinery shipments can account for 70% to 80%.

Rhythm Blockbeats: Will mining costs increase if the mining industry is compliant?

Wen-guang wang:Direct costs are definitely going up, there's no dispute about that. The major premise of compliance is that the cost must be paid, such as upgrading of mine facilities, such as tax declaration and so on, which will increase the cost.

But looking back, I believe that the overall cost of mining has declined or remained unchanged. After compliance, there would be no such things as mine closures, which would be equivalent to all mine investments going up in ashes. The loss of such investments is hard to calculate.

Beat Blockbeats: How long does it take to get out there?

Wen-guang wang:Enterprises need to bear costs and undertake resources. In the short term, it is impossible to go global on a large scale in one or two months.

Blockbeats: As you mentioned earlier, the secondary market of Bitcoin is also going through compliance. Do you think the secondary market is driving the primary market compliance, or vice versa?

Wen-guang wang:I don't separate mining from buying coins, but if I do, I think the primary market is leading compliance.

The internal reason is that the personal assets of miners need to be secure and the high net worth assets need to be protected by compliance. The external cause is domestic policy, such as "carbon neutral", in which non-compliance is phased out.

Blockbeats: Since the trend of mining going abroad is irreversible, will domestic mining disappear?

Wen-guang wang:Of course not, the trend is to go to sea, but domestic will not disappear, will coexist for a long time. Just like mining from the earliest stolen electricity, to direct power supply, and now to the park grid electricity, the trend is obvious, but now the very early power supply mode still exists.

Rhythm Blockbeats: Will there be another mine accident?

Wen-guang wang:I think there will be, since it is an investment product, volatility is inevitable, after the pullback some models will be shut down, I think a lot of people are more recognized this.

Rhythm Blockbeats: Is the bull market over?

Wen-guang wang:I can clearly say that the bull market is not over. On the one hand, at the peak of the last bull market, Bitcoin had less than 40% of the market capitalization, and today it is still 52%. Many coins have yet to rise. On the other hand, this bull market has a lot of players and they are very rational, so this bull market is going to be stretched out.

I think the peak of this bull market will probably be in the second and third quarters of this year, maybe in October, because September and October are the transition period, and prices have been volatile in the past

Rhythm Blockbeats: How big is the global mining industry likely to get in this bull market?

Wen-guang wang:Excluding emergencies, global calculations at the peak of the bull market should be about 20% higher than they were at the start of the month.

Rhythm Blockbeats: What time period will it take place?

Wen-guang wang:This may be a conservative figure for this time of year.

Routine Blockbeats: In your previous interview, you said that Bit Deer could help Chinese mining companies to go out and dig mines overseas by "borrowing ships to go out to sea". How do you cooperate?

Wen-guang wang:In fact, it is an inevitable trend for domestic miners to go out, but it is not terrible to go out. We can refer to how those traditional enterprises went out in the past. In my opinion, the most effective way is the most direct and the lowest cost, which is to borrow a boat to go out or to go out by boat.

In 2016, Bitfawn began to layout overseas mining, so to speak, we should be the first domestic mine or miner to layout overseas, and it has been continuing to do so until now. At present, the volume of overseas mining should also be one of the first, we have 300 MW overseas mining.

For the domestic miners who want to go out, we really want to help you. Our current mines in Texas in the United States and in Norway are open to investors. Miners in China who want to hold overseas loads, or participate in a mine equity partnership, can contact miningcenter@bitdeer.com.

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