For most people familiar with cryptocurrency, mining is also one of the basics.The mining industry has grown into a huge industry since the birth of Bitcoin until now.At the heart of the recent Bitmain squabbles is a dispute over mining machines and the benefits they bring by the mining industry.Mining has become a non-negligible presence.
But for mining derivatives, the current development is still not very mature.This is not to say that the scale of the industry is necessarily mature.The huge industry only indicates that the level of participation has been relatively fixed, and it is difficult for new players to make huge profits by participating in mining.For the mining industry, there is still a need for some “derivatives” to liquify the market and get more new players in, so as to achieve lasting growth, rather than just for a few giant to play.
By comparing the derivatives of Bitcoin and other investment products, we can classify the derivatives of mining industry into the following categories:
1. Cloud computing power sales/leasing/hosting
2. Computing power trading platform
3. Computing power insurance
4. Mining hardware trading platform
5. Computing power options and futures products
6. The tokenization of the computing power products
At present, the market is relatively mature mainly for the sales/leasing of cloud computing power, mining custody platform, mining hardware trading platform.However, for example, the trading platform of computing power, the options and futures products of computing power insurance and the tokenization of computing power have not formed a scale at present, but are presented to users in a relatively scattered form.As a result, there is still a lot of room for development in the future.
Sales and leasing of cloud computing power
This is a product with a long development time at present.Although there have been some scams in the market in recent years, the cloud computing power platform has been much more steady than in the early days.Computing power products are different in style, also shows that the cloud computing power market now actually need one or two more well-known head enterprises to participate.
The sale and lease of computing power is the basis of mining derivatives, and other derivatives are basically developed on this basis.We are now in a period that is a bit like the early days of the bitcoin exchange market, when several exchanges and over-the-counter transactions were mixed, and we could call it the Age of enlightenment.
Computing power trading platform, tokenization of computing power
At present, the computing power trading platform is provided by several cloud computing power providers, but there are also different situations at present, because the computing power product is mainly a standard contract based on the mining machine.Although some platforms have given rise to mutual trading of computing power, traders still need to have a rich basic knowledge of computing to truly participate in it, so as to estimate the potential future returns and make investments.But now the trading platform of computing power products mainly presents an island effect, which is difficult to get through on the data.
As for such problems existing in the computing power trading platform, it can be seen that the current difficulty is actually the generation of a standard computing power product and the provision of computing tools, which is the main stumbling block for the current computing power trading platform to become bigger and stronger.
The tokenization of computing power is actually a relatively new way.If NFT is generated by computing power, there are many ways of playing in the later stage, such as giving away, buying and selling, etc., or piecing together a corresponding amount of NFT to lift the machine, which also has huge imagination space.
Computing power insurance
Most of the people who invest in digital currency are actually buying digital currency directly on the exchange, and very few are investing in computing power.In fact, it is largely due to the uncertainty of mining income and the unpredictable growth of mining difficulty in the future, so the investors involved basically need to gamble as if they were buying coins.Only in this way, can ensure a steady stream of mining income.
So is there a computing power insurance to protect the benefits?At present, there is still no relevant product in the market, which we think is mainly because no one has designed a reasonable way to operate such computing power products, which has also caused the vacancy in this sector.
But it should also be noted that some smart people have added insurance-like clauses to their computing products, such as the joint mining model, in which the user and the mine enter into a mining agreement.Then there is a rule, once the customer gets back the cost, the extra profit is split evenly or proportionally between the mine and the customer.
Computing power options and futures products
When it comes to computing power futures, many people probably haven’t heard of it.But it is also hot recently, such as the cloud computing power sales in FIL.In fact, there is a greater risk at present.The main reason, of course, is the unpredictability of the future, and it’s more problematic than the new currency.Such as the delay of the mainnet, computing power manufacturer’s price forecast model and so on.There is still a long way to go.
The popularity of digital money has made mining a hot word.But for mining, the current cryptoverse’s public participation is still relatively low.Generally speaking, the main reason is that there is no certain standardization and regularization of mining products.But also the industry development is not very mature.
About ZB Group
ZB Group was founded in 2012 with the goal of providing leadership to the blockchain development space and today manages a network that includes digital assets exchanges, wallets, capital ventures, research institutes, and media. The Group’s flagship platform is ZB.com, the industry leading digital asset exchange. The platform launched in early 2013 and boasts one of the world’s largest trading communities.
ZB Group also includes ZBG the innovative crypto trading platform, and BW.com, the world’s first mining-pool based exchange. Other holdings include wallet leader BitBank, as well as exchange brands ZBM, ZBX and Korea’s Bithi.