Bitcoin enters a new rising cycle, mining and hoarding coins become the first choice

Since December, the surge in Bitcoin has attracted the attention of many mainstream media. CCTV Finance Channel's "Zhengdian Finance" reported that Bitcoin has completely recovered from the three-year bear market. Just last week, Bitcoin broke through the 20,000 US dollar mark and continued to rise sharply, hitting an intraday high of 24,188 US dollars per coin on December 20. The price of Bitcoin has soared by more than 536% this year.

Compared with the bull market in 2017, mainstream institutions have more diverse ways of entering the market. In addition to whales like Grayscale and Micro Strategy that directly purchase Bitcoin and hoard it, there are also platforms like Pornhub that open Bitcoin, Ethereum and other cryptocurrencies as official payment platforms. Coinbase, a major global crypto exchange and the largest cryptocurrency exchange in the United States, has secretly submitted an application for listing to the U.S. Securities and Exchange Commission. These changes have expanded the application scenarios of cryptocurrencies such as Bitcoin and enhanced the interoperability between real-world assets and cryptocurrencies.

The safest and most worry-free way to obtain Bitcoin is to mine Bitcoin, which is equivalent to obtaining Bitcoin from the source of the primary market. Although directly purchasing Bitcoin in "secondary markets" such as exchanges and OTCs is fast, it requires a strong psychological endurance and risk resistance.

As the saying goes, "It is harder to keep money than to be a widow." The price of the currency often goes up and down, and the price remains, but the position is gone.

[The computing power of the entire network remains high, and miners' income is more stable]

The rise of Bitcoin has made miners' income more stable, and the difficulty of mining has gradually increased. The computing power of the entire network has skyrocketed from 42.76EH/s in March 2020 to the current 130.9EH/s. The outside world expected that it might decline due to the halving, but it did not come as expected. Since March, the entire network has added about 1.6 million 50Th/s models.

According to BTC.COM data, in the two difficulty adjustments in November, the mining difficulty increased by 4.82% and 8.87% on the 17th and 19th respectively, indicating that more miners are entering this market.

At the same time, in this round of rising tide, the amount of coins held by mining pool operators is increasing, while the amount of coins held by retail mining users is decreasing. This also means that more people are willing to hold Bitcoin (because retail investors' coins are distributed from mining pools), and miners' willingness to sell BTC is gradually decreasing. Hoarding coins has become the most rational choice for miners after "experienced many battles".

[In fact, mining is more profitable than buying coins]

For the same amount of money, compared with buying coins, you can get more coins from mining. For example, if you bought an Avalon A1066Pro at the beginning of the year and sold all the coins mined daily (selling coins in real time to pay for electricity), the machine has paid back its cost so far, and the residual value of the second-hand mining machine is about 60% of the original machine. The current daily mining gross profit is about 55 yuan, and it has been generating income; if you adopt the coin hoarding mode (paying the electricity bill yourself), the coin price has skyrocketed from the beginning of the year to now, which is more than 7 times that of the beginning of the year, which means that the value of the coins obtained from mining has doubled 7 times. In the future, as the volume of BTC increases, the coin price will rise more slowly, and the mining advantage will be more obvious, not only making money, but also earning coins.

As the price of Bitcoin breaks through $20,000, the bidding war for top ASIC mining equipment heats up again. At the beginning of December, all models of Avalon mining machines were sold out. Currently, the entire market has seen a 30-40% increase in new and old mining machines, and it is still difficult to find a machine in the market. Pre-sale orders for Avalon A1246 have been scheduled until the second quarter of 2021.

At the same time, due to the shortage of supply, the premium rate of A1246 futures in the secondary market (agents) for March-May next year has increased by 20%-25%. This shows that in the bull market, whether it is second-hand mining machines, spot mining machines, or futures mining machines, they can not only maintain their value, but also increase their value.

If you failed to seize the opportunity to catch the Bitcoin surge, investing in futures mining machines and laying out an ambush in advance may be a better choice.