Reasons for the Decrease in Coinpool Acceptance (Why is the price of the coinpool falling while the income is still high?)

The decrease in the number of coinpool acceptances on the currency network is due to several reasons according to CoinMarketCap, a blockchain news website in the currency circle. Currently, the percentage of global digital currency exchanges that accept Bitcoin payments is 65% of the total trading volume, while in the encrypted asset market, it is only 11%.

Coinmarketcap points out that the decrease in the number of coinpool users accepting BTC is due to three reasons: first, in the past two months (since early November 2018), the acceptance rate of exchanges has dropped from 90% to 95%; second, recently, the Ethereum network has been congested and transaction fees have continued to rise. As a result, many exchanges have started to shift towards POS mechanism as coinholders are interested in ETH mining and they will use other consensus algorithms for mining.

Why is the coinpool price falling while the income is still high?

Editor’s note: This article is from the FHBT18 community, authorized for reposting by the author Peipei, and translated by Odaily Star Daily.

Hello everyone! I’m Peipei, and recently the hottest topic in the currency circle is the coinpool.

I mentioned a question in a previous article:

What is the mining income all about? Why are the prices of Bitcoin and Ethereum falling? Because the prices of these cryptocurrencies have experienced huge gains and losses, and many people believe that if the bull market really arrives, many mining farms will lose money. However, what we are going to talk about today is why the miners are actually making a lot of money. There are several reasons for this. Firstly, most people are still concerned about the risks brought by market fluctuations. Secondly, as more and more people start hoarding Bitcoin, for them, the price has already dropped significantly. So, in this case, mining machine manufacturers sell off all their tokens, then buy some stablecoins and sell them again. By doing so, the current revenue of Bitcoin mining farms accounts for approximately 20% to 70% of the total mining income. (Of course, if you look at the current trend of BTC and ETH prices, you may find that their income is relatively negligible compared to other altcoins.) Thirdly, from the perspective of the market, although the price of Bitcoin has risen, it has not yet returned to its previous level, which means that when you consider the current trend of Bitcoin prices (such as January 11th), you may feel that you are in a bear market stage. In fact, the halving of Bitcoin may last for about 10 years, which means that a large number of miners will enter the mining industry and carry out operations. Therefore, under the current market conditions, the profit model of mining farms seems to be more stable or balanced. So we need to be aware that due to the relatively small number of participants in the mining market and the maturity of the industry, there are many “fake” projects or teams in the market, and it is difficult to find appropriate investment targets with median prices that can compete with them. Therefore, in the short term, investors should pay more attention to the development direction of the coinpool itself. Finally, there is a question about the security of mining machines and whether the coinpool is safe: According to the latest data statistics, the top 4 highest locked-in amounts on the four mainstream public chains are BSC, Avalanche, Fantom, and Cosmos, IOTA, NEO, and Polygon, while the top three are Ethereum’s DeFi protocols and decentralized exchanges. Another indicator worth noting is that the top 5 largest mining pools in the market currently have a hashrate of over 50E, which makes their overall profitability more than double that of other competitive platforms. In addition, some users ask: “Do you think miners’ income is really low?” The answer is simple.

In fact, in the past year, miners have been able to make profits by…