Eminer:Problems facing mining industry
In the long run, the blockchain mining industry enjoys great development potential in the future. However, from the current development, it’s confronted with problems such as chaos and poor assets liquidity caused by high threshold, strong dependence on resources and lack of supervision.
Currently, the mainstream mining form is mainly physical miners, which forces a number of users who desire to mine to spend some funds cost to buy miners before self-establish or look for appropriate mining farm for management. However, the risk of digital currency and the fluctuation of currency price is high. Faced with a number of uncertainties, users have to pay a large amount of funds cost and time cost in advance, thus raising the overall access thresholds of the industry and intimidating a number of users.
1. High power demand
Mining belongs to a strongly resources-dependent industry, especially the BTC in PoW mode. The electricity cost almost occupies over half of the entire mining income. When the price of BTC is high, miners are still earning despite of high electricity price. However, as the coin price continues to fall, a number of miners who spend high electricity price to mine will be subject to shutdown or even loss. This part of miners tends to be scattered and small groups who are unable to enjoy low electricity price.
3. High professional requirements
Mining puts a high requirement on professionalism of miners, which involves two aspects, namely the professionalism of managed mining farm and the professionalism of miners maintenance as the professional mining farm sets certain standards as to the intervals of machines and ventilation and humidity of sites. In this way, the service life of miners can be extended and the rigs can better operate stably. However, the professional maintenance requires professional maintainers to deal with any possible problems of any miners, whether it is miner virus attack or hardware errors, so as to ensure that miners remain 24-hour online.
4. Difficulty in currency switch
As the consensus algorithm varies among different currencies, the miners required are also different. Few miners possess multiple algorithms at the same time. As a result, it puts some limits on the DOF of miners among different currencies. If miners desire different kinds of currencies, they need to purchase different miners, which add to the mining cost of miners.
5. Lack of standardization of industry
As the supervision of current policies on mining industry and digital currency is still in relatively early stage, the legislation is relatively lagged behind. However, the overall development of the industry is still in barbarous growth status without unified standard within the industry. Moreover, the after-sales and pre-sales services are not well-coordinated and the management level varies. Therefore, the chaos, tricks, hidden rules in the industry plague new and old miners and complaints cannot be effectively handled.
6. Imperfect services
Mining belongs to the industry with high fixed asset input in the early stage. As the financial service corresponding to it is not perfect, the liquidity of fixed assets input by miners is poor. When miners require certain cash flow, they will be running short. In addition to the mortgage-based realization of digital currency, they cannot realize fixed assets in time to satisfy fund demands. In addition to financial services, the other services related to mining are also backwards, such as construction and transfer of miners and mining farms, warranty and maintenance of miners accessories and report and publishing of mining-related information, which are all in elementary stag.