Receive 50 calls a day, BTC miner: Buy all kinds of second-hand mining machines, as many as you can get! | Babbitt original

These two days, a part of the miners’ circle of friends is like this.
A: We accept all kinds of second-hand mining machines. We will take as many as you can get!
B: Antminer S9, looking for a load of 20,000, hedged, and running for 5 months without stopping.
C: May futures (only a small amount left), hurry up, the price will be increased in two days.
D: Due to business expansion needs, we are now recruiting for the following positions: mine operation and maintenance, management personnel...
E: I receive 50 calls a day. Everyone calm down. I think I’m going crazy…
Bitcoin has risen, the market has picked up, and the mining machines, miners, and mine owners who have struggled through the entire year of 2020 can finally have a good new year.

Bitcoin produces 210 million RMB per day, S9 also becomes a money-making tool

At present, the daily output of Bitcoin mining is 900, and the transaction fee output is about 109. Calculated at 32,000 US dollars, the daily output of mining is about 32.29 million US dollars, which is about 210 million RMB. How crazy is this? Comparing it with January 2020, you can find that the output has increased by about 5 times.
According to the data from the Biyin mining pool, more than 90 Bitcoin mining machines have a daily income of more than 10 yuan, and 11 Bitcoin mining machines have a daily income of more than 100 yuan. Among them, Shenma Mining Machine M30S++, Antminer S19 Pro, and Shenma Mining Machine M30S+ ranked the top three, with daily incomes of 149 yuan, 147 yuan, and 130 yuan respectively.

Data from the official website of Biyin Mining Pool

Antminer S9 was born in the last bull market and was completely eliminated by the market. But today, this mining machine has a daily output of 9.74 yuan, and electricity costs account for 54%. Previously, the second-hand price of S9 was only nearly 100 yuan. Today, S9 has risen to about 600 yuan (the quotation will vary). In just a few months, S9 has gone from scrap metal to a money-making tool.
It is a bit exaggerated to say that as long as it is a mining machine, miners are thinking about making it run. Once the mining machine is running, it is equivalent to starting a money printing machine. Jiang Zhuoer posted on Weibo that he has nearly 100,000 S9s to be deployed and started.
QKL123 data shows that on January 4, the average computing power of the Bitcoin network was 142E, a record high, up about 42% from the same period last year. According to forecasts, the difficulty of Bitcoin mining will increase by 5.51% in four days.

Bitcoin price chart from QKL123

The "2020 Mining Report" from the Rhythm Research Institute shows that in October, China's Bitcoin computing power suddenly jumped from about 53% of the world's total to 72.21%. Practitioners speculate that this may be due to the restart of "shutdown mining machines" after the rise in Bitcoin prices.
It is still the dry season. When the flood season comes in May, with the current price of the currency, more dormant mining machines will wake up from the warehouse.

In the sudden bull market, Bitcoin mining machines are still hard to buy even though prices are rising every day

Old mining machines are in good condition and new mining machines are even harder to come by.
Chen Lei, founder of BitBlueWhale, said: “It’s very tight, there is not much stock and the price is very high.”
Yinbit co-founder Zhu Yu also said: "The price goes up every day and it's hard to buy it."
Data shows that the mining machines of mainstream Bitcoin mining machine manufacturers have been sold out after July 2021. For example, the August futures of Bitmain's mining machines have been sold out, and the price has increased very rapidly.

Image from Caiyunbit official website

Taking the data from Caiyun Bit official website as an example, the futures price of Antminer S19 Pro in January is 51,500 yuan. However, the price of this mining machine on the Antminer official website is only 27,700 yuan. Even at the price of 51,500, the payback period is 350 days, which is much shorter than before.
Of course, the shortage of mining machines is not only due to the surge in demand, but also to insufficient production. According to Lv Lei, the founder of Caiyun Bit, after years of development, the technical threshold of the Bitcoin mining machine industry may not be as high as before, but the capital threshold is higher than before. Mining machine manufacturers are helpless and cautious. Once they invest a lot of money in production, the market will be bad and the sales will be unsold, which is very risky.
Therefore, the distribution volume of mining machine manufacturers in 2020 is obviously not large.
"When the market is rising, there is a characteristic for mining machines, that is, the price of mining machines follows the market. When the market is rising, the price of mining machines will change very quickly." said Lu Lei.
In fact, the whole year of 2020 was not easy for Bitcoin mining. In September 2020, Bitcoin was only $10,000, and it broke through $20,000 at the end of November. In other words, Bitcoin's real bull market lasted only a short month. Interestingly, after June 2020, Ethereum miners were extremely happy, while Bitcoin miners were suppressed in terms of yield and were unhappy.
Although the entire market has exploded in this month, the production side has not kept up. Coupled with the impact of the epidemic and insufficient chip production capacity, the distribution capacity of mining machines can be said to lag far behind market demand.

Retail miners have basically cleared out, and the "public enthusiasm" of the mining market has declined

Recently, the biggest mining news is that Marathon Patent Group announced the completion of $200 million in fundraising to pay the balance of mining machines and expand its business. Among them, $170 million was used to purchase 70,000 Antminer S19s from Bitmain. These mining machines will be deployed from July to the end of 2021.
In fact, by 2020, the institutionalization process of Bitcoin mining has been completed, retail investors have basically cleared out, and demand basically comes from large institutions replenishing stocks.
Some practitioners lamented that even in China, there are traditional companies entering the mining industry in various ways, but they do not advertise it. And without tens of millions of funds, you can no longer play the mining business.
Interestingly, in 2020, many miners shouted the slogan of new infrastructure, and some mining farms even tried to seek listing on the securities market. This seems to be enough to show that Bitcoin mining in China has entered a new stage.
Do ordinary investors still have a chance? Perhaps cloud computing power and joint mining are the last chance.
In the second half of 2020, the founders of mainstream mining machine manufacturers almost all faded out of the public eye. The mining industry no longer has top opinion leaders. Coupled with the gradual withdrawal of retail investors, the voice of the mining industry in the entire cryptocurrency industry has become increasingly weak. This gives people the illusion that Bitcoin mining has been de-"cryptocurrencyized."
If you are not working in the mining industry, are you still paying attention to the development of the mining industry?