Based on the judgment of the current global mining development trend, Farmit expects that future artisanal miners will gradually transform to cloud computing mining, and eventually artisanal miners will all be cloud computing miners. This is based on the basic laws of the evolution of the mining industry to make a judgment, the mining industry is now in the process of industrialization, the characteristics and advantages of industrialization is centralized, large-scale, batch operations, compared to the decentralized workshop-type operations, industrialized stability, quality control, management, cost are more advantageous, to put it simply: industrialization is cheaper than you than the quality of high.
The industrialization of mining industry also follows this law, small and micro miners are workshop operations and large mining farms and similar to Farmit such as free large mining cloud computing platform is industrial mining operations, there is a competitive relationship between the two, and eventually industrial operations gradually replace workshop operations, cloud computing becomes the most universal solution for individual mining investment in the industry.
The main reason behind the decline of individual mining is an obvious trend. In fact, since the introduction of ASICs and other special mining machines, mining has been decentralized towards centralization, and the main reason behind this is that technological upgrades have started to eliminate backward arithmetic machines.
The high energy consumption of the mining process is not energy friendly, and some countries and regions have a rejection attitude towards mining, so mining compliance is a threshold, and if mining is banned in a country, you need to go overseas to mine, which is a very big challenge for micro miners.
Cloud computing does not have this problem, he can set up mining sites in any compliant countries and regions around the world and then sell the computing power to every corner of the world, bypassing the problem of compliance. In addition, group mining can also hire legal counsel to comply with some policy issues, while small and micro miners are unlikely to have the support to do so.
There is also the issue of energy cost of mining, in the case of mining machine cost input composition is the same (the overall cost of mining machine hardware difference within 10%) and energy, the main cost of mining has become the main battlefield of competition between large mining farms and small and micro miners, large mining farms are usually the use of the agreement tariff to obtain electricity and energy at a cheaper price than the market, and even some mining farms to take the staggered price of electricity in the low peak period of electricity to cheap electricity Large-scale over-frequency operations, while the average miner can only use high-priced industrial electricity, which the cost gap between more than 30% or even can reach 50%.
For a variety of reasons, small and micro miners have really gradually withdrawn from the frontline mining market in recent years, so the network-wide computing power has been growing but the scale of miners has not grown a lot.
The Farmit cloud computing platform has more than 60% of users who were originally individual miners, and they continue to mine after withdrawing to the Farmit cloud computing platform. From the surface, the return of buying cloud computing is definitely not as good as mining by yourself, because the platform's own operation and profit will become the cost of cloud computing miners, but after deducting the risk cost of individual mining, in fact, the actual revenue of cloud computing is not much less than self-mining, and cloud computing saves miners a lot of time and energy, and has stronger anti-risk ability, so for miners cloud computing is a better mining solution. For miners, cloud computing is a better solution for mining.
Currently, statistics show that 30% of the network's computing power is in the hands of individual miners, and by 2025 this proportion will drop to about 15%. With the introduction of a new generation of mining machines with more expensive costs and better performance, individual miners will most likely choose to transition to cloud computing after disposing of the machines in their hands.
Farmit will really expand its own arithmetic power on a large scale to meet the arrival of the cloud arithmetic power era with scale cost reduction and be the head brand of global cloud arithmetic mining.