New F2Pool Crypto Mining Founder Mao Shixing Interview: China’s the Best Bitcoin Mining Location
Recently, Mao Shixing had an interview with LongHash where talked extensively about Bitcoin mining. Mao is a co-founder of F2Pool, an industry leader in the Bitcoin mining sector.
In the past, Mao said that the plummeting of Bitcoin's value forced 800,000 miners to abandon their operations. Regarding this, he explained that the shutdown was a result of poor profits because the price of Bitcoin couldn't recoup the expenses used in mining, mainly energy bills. He also mentioned that the reduction of electricity charges is the only factor that can make mining feasible during a bear run.
When asked about his company’s business strategy, Shixing stated that they have grown gradually from a startup to where they are right now. This steady development has equipped them with a better understanding of the market, an aspect that ensures they pick the most profitable cryptocurrencies.
Mao believes that the increasing hashrates come from the acquisition of more powerful computers by cryptocurrency miners. This is because of the increase in mining rewards. Another reason that may have increased the hashrates is the return into operation of mining hardware that was left dormant at the height of the Bitcoin bear run.
The majority of F2Pool’s mining facilities are based in China. According to Shixing, they chose China because of the availability of skilled manpower. Moreover, the electricity costs in the country are cheaper than in other locations.
Another reason that motivated F2Pool to set up in China is the proximity to chip manufacturers. This means that it is easier to assemble the parts needed to construct mining rigs. Mao expects operating expenses to reduce even further in the future because of the constraints experienced during the 2018 bear market.
Furthermore, Shixing revealed that F2Pool is closely monitoring the development of privacy coins such as Monero, Dash, Grim and Beam. The latter two are particularly new to the market, yet F2Pool was among the first platforms to list them. However, Mao Shixing acknowledged that privacy coins are still in their developmental stages and have a lot to do before they can gain widespread adoption.
Lastly, Mao said that F2Pool usually holds funds instead of cashing out when the markets are performing dismally. He also talked on the new ProgPow algorithm and how it will affect mining on the Ethereum blockchain. F2Pool supports ProgPow because it allows standard computers to mine and also nullifies the impact of ASIC miners.