How to invest in mining during the flood season?

Hello, fellow miners. I am Kiki, the host of this event. The theme of this event is: Investment logic of mining in the flood season. On April 23, Mars Cloud Mine launched the lowest mining electricity price in the entire network: 0.19 yuan/kWh, a fast return package in the flood season. We invited the men behind the 0.19 yuan electricity price: Alan, the product manager of Mars Cloud Mine, and Tony, the chief business officer of Mars Cloud Mine. Let's get to the point:

Kiki

Hello, friends from Mars Cloud Mining. We at MiningCoin.com are very interested in the 0.19 yuan/kWh mining electricity price you launched. Tony, the chief business guy from Mars Cloud Mining, can you tell us in detail how you got this electricity price?

Tony

It seems that the electricity price of 0.19 is still very influential to everyone. Indeed, our first batch of 200 Fengshui mining products have been sold out in less than three days. There are still customers contacting us hoping to put the second batch of products on the shelves. Out of everyone's needs and the welfare of the fans of the mining website, we also discussed internally this afternoon that after the end of the first topic today, the second phase of water and electricity packages will be put on the shelves, so that everyone can participate.

The current market price of hydropower is 0.22 yuan/kWh, but this is the price for large customers. In fact, 0.19/kWh is the price difference subsidized by Mars Cloud Mining, so that our users can enjoy our subsidized price starting from 1 unit. We hope that everyone can overcome difficulties together in the bear market and share profits in the bull market, and achieve win-win results for all parties. Provide a lower entry cost, introduce more fresh blood into the mining circle, and join the mining team.

Mars Cloud Mining Rapid Return Package Exclusive Order Link for CoinWise:

https://www.mclouds.io/product/55

[0.19 Fengshui electricity price + 0 management fee + 7999 yuan M20s]

Kiki

What are the advantages of the fast return package mentioned above? After the user's return, the platform takes 30% of the user's mining income. Is this reasonable? Please let Alan answer for us.

Alan

First of all, I personally think that when mining, of course you have to consider the impact of the coin price and the impact of halving. But more importantly, you have to consider the position of your average mining cost in the industry. When your cost has a competitive advantage, you will definitely win, the only difference is how much you win.

As for the Mars Cloud Mining, a fast payback package, it includes several key points:

1. The platform directly subsidizes 0.3 cents per kilowatt-hour on the basis of 0.22 yuan per kilowatt-hour for large B-end users in the mining farm, reaching 0.19 yuan per kilowatt-hour, and uses the method of switching between hydropower and thermal power, which reduces the operating cost of mining machines by nearly 25% in one fell swoop. This is the first cost advantage.

2. We carefully selected the Shenma M20S 68T product to adapt to this extremely fast return package. We use bulk purchases to obtain prices lower than the channel, and put it into the market with direct price subsidies. Miners know the market price. Our M20S 68T price is 7999, which is basically 300 yuan lower than the market price. This is the second cost advantage. This is still compared with the price of the B-end market.

3. Why choose Shenma M20S instead of Antminer S17+ or S19? Because the most important thing about this package is that it lowers the unit price of electricity. In this case, machines with high computing power, low price and relatively high energy consumption will have a more obvious effect on lowering the user's mining cost. It's very simple. Only mining machines with high energy consumption and low price can obtain all the spillover benefits of low electricity prices. This is the third cost advantage.

As for the rationality of the platform and user sharing, after the user fully recovers the investment, the platform will share the net profit with the user at a ratio of 3:7, and the user will receive 70% of the net profit. In fact, a lot has been explained before. Compared with the 25% mining electricity price cost subsidized by the platform, the 15% management fee exemption for at least three years, the guarantee of stable computing power submission and the isolation of investment return risk, the user is in a very advantageous position. In other words, users can obtain a stable computing power cost guarantee, a stable machine computing power submission guarantee, and a lower and more suitable mining machine cost guarantee, and at the same time they will not pay more than ordinary mining methods. Lower risk and higher returns are also the original intention of our design of this product package.

Kiki

This sounds like a product with relatively stable investment returns. So how long is the payback period for this package? How does the platform calculate the payback period? @Alan-Mars Cloud Mine

Alan

In fact, the calculation of the payback period is also very simple. We roughly calculate it based on 140 days of flood season, two shutdowns for the hydropower mine/thermal power mine to transfer between them for a total of 30 days, and 195 days of dry season thermal power operation.

The M20S 68T mining machine has 335 effective mining days and can produce about 0.25 BTC. Based on today's BTC market price of around 7700Usdt, after deducting electricity costs, the mining machine can recover about 73% of its cost in the first year. Adding the residual value of the mining machine, even if the current currency price is conservatively estimated, the user's account net value in the first year can also gain more than 35%. Key points: Based on today's currency price, the book net value can also reach 35% in one year. Of course, based on the current upward momentum, we believe that it is very likely that the currency price will rise to the payback line of full principal recovery in 12 months, that is, a book residual value return of more than 60% can be obtained in the first year.

Kiki

What are the advantages of M20s continuing to mine after the halving? Is it possible to shut down? What is the shutdown price? If the shutdown price is triggered, how will the platform handle it? Tony, please answer

Tony

Everyone knows that BTC is about to halve. The computing power of the M20S machine is 68T and the power consumption is 48W/T. The technology and quality are among the best products on the market. At the same time, the advantage of our 0.19 electricity price water and electricity package is the switch between water and thermal power, which greatly lowers the average electricity price throughout the year. After the halving, the M20S can definitely continue to produce. According to the production capacity of subsequent new mining machines and the number of mining machines that can be retained in the mine after the halving, the 20S is relatively in a safe position. Based on our water and electricity package, our average annual electricity price is around 0.283 yuan/kWh. Under the extreme direct halving, the shutdown coin price of the M20S in our package is also around 40,000. I believe that everyone does not think that BTC will be at this price for a long time.

At present, the major mining pools estimate that the output of a single T after halving will be 70% of the current level based on the current market computing power source model. (This involves the withdrawal of lagging computing power). In this way, the shutdown risk of our water and electricity packages will be lower, at about 30,000. Taking a step back, even if the shutdown price is reached, the Mars Cloud Mining Platform will immediately warn customers, contact customers, and decide whether to continue to operate according to the customer's wishes, giving the choice to the user.

Kiki

The operation of Mars Cloud Mining Platform has actually broken the electricity price of some mining farms in the mining industry. Generally, the investment price of mining farms during the flood season is around 0.23 yuan. Will the price strategy continue in the future? Can you reveal the product design prototypes in the future? Please welcome Alan

Alan

First of all, it should be pointed out that the business form of Mars Cloud Mining facing customers is not a simple B2C product sale. It is actually a new type of business that combines funds and industries. Mars Cloud Mining also entered the mining industry due to its joint layout of various business lines in the blockchain industry and the needs of digital asset transactions, reserves, and redemption. It must have a certain stable reserve of Bitcoin and computing power reserves. Also because of the business characteristics of the Mars Blockchain, Mars Cloud Mining, as a platform, does not want to sell a product for price arbitrage, but hopes to gather investment funds in the market to grow ourselves with us, hold computing power, and obtain lower mining costs. Always holding the competitive advantage of cost can always stand in the position of winners.

Based on the business characteristics of Mars Cloud Mining, we are not simply following a pricing strategy, but we hope to form a volume advantage with users, and conduct in-depth exploration of the quality, cost, risk, and price of overall mining resources such as mining machines, mining sites, mining pools, and operation and maintenance, and share the advantages. In short, we want to bind the interests of users. Users must make money first before we can make money. This is also the biggest difference between us and other simple mining service sales platforms.

In addition, in terms of future product design, we have also started some research on new currency mining and the development of new mining combination products, such as the currently popular IPFS, which has entered the business planning. At the same time, with the support of other business line products of Mars Blockchain, we will gradually increase the entry of financial services such as mining ownership transfer, leverage, hedging, etc.

Kiki

The last question is, based on the investment logic of mining in the flood season, do you have any suggestions for small and medium-sized miners? Please @Alan-Mars Cloud Mine answer for us first

Alan

Speaking of suggestions, first of all, I think mining is essentially a competition of costs. The so-called backward production capacity is actually the production capacity with a cost higher than the median of the industry. I also noticed that as a miner, people often talk about the price of coins, the shutdown price of a certain mining machine, and other issues. For me, I don’t care much about these. Because I think the so-called shutdown price is not actually a Bitcoin price node in the usual sense. I think it is just a floating result of market regulation. Because as long as your mining cost is below the median cost of the industry, the squeeze of the coin price will first destroy those production capacities with higher costs than you, and the difficulty and output of the Bitcoin network will have positive changes and keep you away from the shutdown price. When the price of Bitcoin rises, those who originally backward production capacity will restart, and those with low costs will get more coins during the computing power vacuum period, and they can continue to share the spillover benefits brought by the rise in coin prices in the competition for production capacity. So those who earn more will always be ahead, so maintaining cost advantages is what I think is the most important investment logic in the mining industry, nothing else. The above is my personal opinion.

Tony

I also often seek advice from Alan, and I will talk about it from the perspective of consumers making money.

As the saying goes, time is money. As we all know, the distribution of hydropower mines is basically in Sichuan and Yunnan. The inherent conditions determine that the number of hydropower mines is lower than that of thermal power mines. These places will only start construction in the rainy season, and the annual working cycle is about five months. As mentioned above, the water-thermal power switching of our hydropower package can lower the unit electricity cost of small and medium-sized miners and greatly shorten the payback period of investors. Another important point is that in addition to subsidizing electricity fees for mining packages during the flood season, Mars Cloud Mine also exempts users from management fees, passes on profits to users, allows users to pay back as quickly as possible, and maximizes user benefits!

The exclusive order link for mining coins for Mars Cloud Mining's rapid return on investment package is now online:

https://www.mclouds.io/product/55

[0.19 Fengshui electricity price + 0 management fee + 7999 yuan M20s]

Download address of Wabi.com APP, we will continue to recommend more high-quality mining packages to you: http://m.wabi.com/appdownload

Free Q&A session

Netizens

Is it reliable?

Alan

Speaking of reliability, in fact, when we were working on the product model, we also came across some lower electricity prices and mining farms, but we had to comprehensively consider whether the mining farm was reliable, such as whether there had been natural disasters within ten years, whether it had been in operation for more than three years, the operation and maintenance team, site conditions, etc., and even the driving distance from the city had to be considered to support the availability of the mining farm's computing power and whether it was reliable.

Netizens

Which mining pool do you mine in?

Alan

We have in-depth cooperation with major mining pools, including BTC, FishPool, Ant, etc. This product is currently btc.com, and the mining pool has also participated in some support for this product.

Netizens

Where are the mined coins stored?

Alan

Mars Cloud Mining has its own wallet system, which will automatically allocate money to the account every day.

Netizens

Can you calculate the payback period after halving?

Alan

This year we estimate it to be about five months

Attached mine pictures