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What does the algorithm of a mining machine mean? (Is higher mining power better?)

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The algorithm of a mining machine refers to adjusting the computational power of

What does the algorithm of a mining machine mean? (Is higher mining power better?)

The algorithm of a mining machine refers to adjusting the computational power of the machine to obtain a certain amount of Bitcoin rewards under specific conditions. This situation is also known as the “Ant S9” of Bitmain.

Speaking of the most popular ASIC chips in the current market, apart from graphics cards and CPUs, there are also other parameters such as Proof of Work (PoW) or Proof of Capacity (PoC) algorithms that can be used for mining. However, these algorithms are not suitable for ordinary users in practice. Because most people do not understand this issue well, they choose to use other methods to mine their own currencies.

Is higher mining power better?

Is it better for a mining machine to have a higher price?

According to a report published by Coindesk, Bitcoin mining equipment manufacturers are seeking to increase their average hashrate to 150EH/S by the end of the second quarter of 2020. However, this does not mean that a significant increase in mining power will have a negative impact on the cryptocurrency market, but rather it concerns the overall situation of the mining industry. Since last year, many people have noticed the volatility of mining machines. However, in reality, as more and more users enter this industry, some investors seem to realize this difference: a decrease in mining power will not have such a big impact; failure to make appropriate adjustments may lead to reduced profits, as these companies may only offer cheaper services or products.

Nevertheless, some users still believe that the price of Bitcoin should be below $50, or even $100, but most people believe that this number may increase due to factors such as the instability of Bitcoin prices and the uncertainty of network usage. For example, the BTC/USD trading volume in the third quarter of 2019 increased by nearly 30% compared to the level in 2019, and the BTC/USDT trading volume as of the first quarter of this year was $4.36 billion. Therefore, even with an increase in mining power, it may still be one of the short-term bullish signals.

Unlike the halving in 2017, this year’s bull market is mainly driven by two reasons: 1) Halving itself does not mean a reduction in production. 2) The Bitcoin price has not been influenced by any obvious reasons, but the block reward of Bitcoin has decreased by 200%, making it fewer than other times.

3) Various events in the past few months have indicated this:

First, the global network difficulty of Bitcoin is expected to continue to grow and then drop again, causing a decline in hash value. In addition, since mid-May, the price of Bitcoin has been at historical lows, handling only about 8 transactions per second, which means that Bitcoin needs to consume more than 10,000 Bitcoins per year, which means that more Bitcoins can be mined every day.

Second, the upgrade of Ethereum 2.0 has been completed, and now the merger of ETH2.0 deposits is proceeding steadily, which is expected to make Ethereum a more sustainable network. Although this technology cannot completely eliminate the security threats faced by Bitcoin miners, the Ethereum mining community has been discussing this issue. In a recent interview, a person named “BitcoinJack” told Odaily Star Daily, “People are generally concerned about some potential vulnerabilities associated with Ethereum 2.0, due to the immutability and decentralized nature of the blockchain, as well as the series of new risks brought by Ethereum’s PoW algorithm.”

Finally, the founder and CEO of “Ethermine,” another alias, pointed out, “As a means of storing value, security is crucial for Bitcoin. It is a very important challenge for Ethereum as well.”

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