Vendors of mining hardware, operators of mining locations, but also providers of crypto finance and associated services as well as many other participants – the “who is who“ of the Bitcoin mining world – convened at the World Digital Mining Summit (WDMS) that was held from October 8 to 10, here in Frankfurt am Main.
The opening speech delivered by Jihan Wu, founder of the technology giant Bitmain, as well as operator of an own mining pool, already lent salient expression to the sector’s self-confidence. He cast the Bitcoin system in relationship to the prevailing financial system, and, by way of analogy to the “Star Wars” space saga, placed the financial system in the role on the dark side of power.
Apart from the presentations of the companies‘ offerings, there were a number of topics that shaped and determined the congress: which are the best mining sites, and what are they characterized by? In this respect, favorable electricity costs remain a central concern. Accompanying issues were mainly revolving around the options for cooling mining containers as well as halls. Here, it became readily evident that mining is being increasingly shifted to climate zones with cooler temperatures throughout the entire year. Striking a somewhat martial posture, but probably due to local circumstances, a mining site in the former Soviet Union advertised, among other factors, the fact that the halls housing the mining hardware are protected by armed security personnel around the clock.
The technical further development of the mining hardware since its operation on an industrial scale is also most impressive. At this year’s summit, Bitmain announced their Antminer S17+ und T17+. According to initial information the Antminer S17+ is set to achieve a hashrate of 73 TH/s and operates with an energy efficiency of 40 J/TH + 10%, while the T17+ records a hashrate of 64 TH/s and operates with an efficiency of 50 J/TH + 10%.
Naturally, strong interest focused on the development of the Bitcoin price. While in previous phases of falling prices the hashrate also declined and the difficulty was reduced, this trend is not in evidence during the current price adjustments. The price and hashrate seem to have decoupled. Instead of dropping or stagnating, the hashrate continued to rise, also when prices were on the way down. The sales pressure of miners, who have to cover their costs from the proceeds, also burdened prices. There was general consensus that the current demand is still far from optimal and that in any case, the “Crypto“ mega trend will need some time still to unfold. Also, in comparison with the volume of the stock marked exchanges worldwide and the FIAT currencies, Bitcoin as an investment class is, in actual practice, far from playing any major role.
The increasing mainstream acceptance and use of Bitcoin increases its value. In this context, the USA is regarded as the most important market. It is generally faulted that while various media are reporting on Bitcoin and crypto currencies, these accounts still tend to be mostly negative. As a specialist for online-marketing miners, Sean Walsh, CEO of Hyperblock, suggests to not only invest in mining equipment, but also in measures boosting the value of Bitcoin. He proposed an affiliate marketing program, similar to the one that Amazon developed as the foundation of its success. According to such a concept, the affiliates refer their website visitors on other sites and receive sales commissions on resulting orders placed. Walsh documented that the return on investment here is ten times higher than an investment in the mining alone. Moreover, he also presented the idea of launching a pro-active advertising campaign revolving around Bitcoin.
See Moritz Jäger, CTO of Northern Bitcoin, interviewed by Tsou Yung-Cheng, CEO of RRMine, a leading cloud mining company. They are talking about Bitcoin halving next year as well as the future development of cloud mining.
For all of our readers who would like some first-hand visual impressions of the World Digital Mining Summit, here is the video material provided by the Youtuber Bitcoin Informant.