|
Mr. Wang Chong from NiuHuaLi made a wonderful sharing on the knowledge question and answer of Bitcoin mining circle in the "8-minute blockchain" community. The following content is an excerpt of Mr. Wang Chong's sharing content. ask: Please tell us about your mining experience (to satisfy the fans' gossip) Mining is something that I decided to focus on after going through all the circles of the blockchain. I participated in the establishment of exchanges in the early days, and also participated in ICOs in the cryptocurrency circle. I can say that I have experienced the prosperity of the entire cryptocurrency circle. I think the cryptocurrency world is more impetuous and unsteady. The blockchain world needs to grow and incubate, for example, when the public chain technology has made a breakthrough and various DAPPs can really run. So in my opinion, in the entire blockchain ecosystem, the mining world is a more solid, more visible and tangible sector, so I chose to work in the mining world. Mining actually starts with two steps: either finding a mining machine or finding electricity. I am no exception. I started mining by finding electricity. I am from Jiangsu, but the electricity bill in Jiangsu is relatively expensive. At that time, I had not thought about going to Sichuan, Xinjiang, Inner Mongolia and other places because I felt they were too far away. So I went to the neighboring Anhui Province to find an agricultural electricity station. Because agricultural electricity is cheaper than industrial electricity, it is about 40 cents per kilowatt-hour. However, the mining income was very high at that time, so I thought the electricity bill of 40 cents was acceptable. It was also from that time that I started to build a mine. At the beginning, there were 500 mining machines, and then it was expanded to 800 and 2,000. Then we could not continue to build the mine because the electricity load had reached a peak. If we expanded it, the village committee would come to us. Later, in order to continue to expand the mine, we moved to Inner Mongolia, but we also stepped into a pit. Someone told me that the electricity fee in Inner Mongolia was 0.18 yuan, and then I spent a lot of money on relationship fees. Later, I found that this low-priced electricity could not be used for mining. Of course, this is also a very valuable experience, which makes me very cautious in the layout of electricity in the country and even the world in the future. So now we are cooperating with large local state-owned enterprises in the field of electricity. We have now built seven large-scale mining farms across the country. The smallest of these mining farms has a load of 20,000 kWh, which means it uses 20,000 kWh of electricity per hour. The total load of the seven mining farms combined is 493,000 kWh, which means it uses 493,000 kWh of electricity per hour. Normally, for a small county with a population of more than 100,000, the total civilian electricity consumption is generally 100,000 kWh per hour. Our total electricity consumption is enough to power 3-4 small county towns. Is now a good time to enter the mining industry? This is a very good question, because the price of coins has plummeted during this period, and many negative reports have come out, such as mining accidents are coming, miners are going bankrupt, etc. In fact, whether it is a good time to participate in mining now depends on your own state. For example, I am still increasing my investment in mining, both in terms of the scale of mines and the purchase of mining machines, and I think this is a great time. My professional friends around me, including large capital investors, call it a gold mine. If it weren't for the COVID-19 pandemic, if it weren't for the plunge in major global asset classes, there would not be such a good gold mine. Why do we say that there are only gold mines now? Because now is the difficult period or the freezing point of the mining industry. If you enter the market at this time, the mining machines are basically sold at cost by the mining machine companies . In addition, many second-hand dealers of mining machines, especially those who have hoarded a large number of goods before, are selling mining machines at a loss. And the current electricity price will also be more favorable. For example, some cloud computing platforms or small mining farms that accept retail custody orders will now reduce the electricity fee by one or two cents, in order to tide over the difficulties with the miners. So we think this is a very good time to mine gold, and there is a jargon that goes like this: mining in a bear market, and speculating in coins in a bull market . Because in a bear market, the price of machines, electricity costs, operation and maintenance costs, and all labor costs will be low. The entire industry will not be so impetuous during this period. After all, everyone's requirements for investment returns will become lower. In addition, a bear market has another benefit for the mining industry: the computing power will not skyrocket . If it is in a bull market, many new mining machines will be added every day, and the computing power of the entire network will grow very fast. However, in a bear market, as long as the computing power does not skyrocket, the same machine will be able to mine more BTC. When the bull market starts, sell the mined coins, so that you will get a lot of income. So the jargon in our mining circle is: speculating in coins is not as good as hoarding coins, and hoarding coins is not as good as mining . I heard that mining farms don’t like small miners. Is that true? Why? Wang Chong: Mining farms don't like small miners. In fact, this is normal, especially for large mining farms, which basically have a load of more than 50,000 kWh, and even top mining farms can reach a load of 500,000 to 600,000 kWh. The installed capacity of a mining farm of this scale may reach more than 200,000 units. If they are all small miners, hosting a dozen or dozens of mining machines, the service cost of the entire mining farm will be very high. A large customer service team is needed to serve these small miners well. For example, when it comes to paying electricity bills, whether you have one or ten thousand units, the mining farm needs to calculate the electricity bill once and collect it. In fact, the workload is the same. If you are doing business with small retail investors, the management cost of the mining farm will be much higher and the difficulty will be much higher. So the mining farm doesn't like small miners. At the same time, I will also tell you a little secret. Sometimes some small mining farms like to receive hosting business from small and scattered miners because the gross profit is relatively high. These small mining farms can charge more expensive electricity fees, and can also steal the computing power of retail miners under some excuses such as mining machine failure maintenance, mining farm power outage, etc. These things are some open secrets in the industry. How will Bitcoin trend in the future? What do veterans think? Wang Chong: Actually, to be honest, I am generally not willing to predict the price of coins, because I have experienced too many bull-bear conversions. Basically, there is no need to look at the long-term trend of Bitcoin. It must be a process of oscillating upward, and it will become more and more expensive and more and more valuable. It is becoming more and more scarce, but how the price of the coin in the short term will be, we can only ask God. For example, the recent plunge in the market, due to the impact of the new crown epidemic, the mainstream assets around the world are plummeting, and Bitcoin has also been brought down from more than 9,000 to 3,800, and then rebounded to the current more than 6,000. In the short term, I think before the epidemic is completely under control. The price of this coin may still go up and down. But in the long run, I firmly believe that Bitcoin will become a great digital asset. Bitcoin now has about 40 to 50 million users, and about 20 to 30 million active users. Moreover, Bitcoin has been declared dead countless times in the past 11 years, but it has always made a comeback. There is no doubt that the future will be a digital age. For example, China is also issuing DECP, and Facebook has been promoting the development of Libra. I predict that in the future, including our houses, cars, etc., these assets will be digitized. At that time, everyone will definitely wonder, what is the earliest digital currency? Is it Bitcoin, right? And after the recent big shock in the currency circle. The lowest point was hit at 3,800. I think this is a gold mine, a very good gold mine. At this time, if it does not affect your life, there is no problem in buying some Bitcoin or choosing to mine and hoard coins. Please tell me about the impact of halving on mining Wang Chong: This question is very complicated. The impact of mining halving is actually a cross-variable. The mining income is a variable of four factors: the first is the purchase price of the mining machine, the second is the price of the currency, and the third is the electricity cost of the mining machine. The fourth is the difficulty of mining , so the mining income is a comprehensive dynamic result. When the mining income is halved, many old mining machines will shut down, but it will not have much impact on those who own the latest mining machines. On the contrary, they will mine more BTC because the competition for computing power participating in mining has decreased. So at this time, the people entering the market are all old miners, and many professional miners are starting to buy mining machines at the bottom. At this stage, many new miners and new investors cannot be persuaded to buy mining machines, so I think the halving event is bad news for people who have a large number of old mining machines. But for miners who have a new generation of mining machines and are investing in the long term, this is actually a very good opportunity. To be honest, when Bitmain's new machine S19 was released a few days ago, a sales manager contacted me and talked about: some professional old miners in the current market have become active again.
Scan the QR code to follow us and you won’t get lost Mining direct link: http://www.hashcow.cn/active/#/pages/index/index?method=7 |
