Bitcoin is unstoppable, mining machines are out of stock, where is the lower threshold for Bitcoin?

You can buy coins, or you can mine them. Personally, if you want to explore the crypto world, it’s best to have both in your portfolio. —Marco Streng

Since June, the price of Bitcoin has hit new highs, and the corresponding mining income has also increased dramatically. Taking the Antminer S9 SE 16T as an example, the average daily mining income in the past 30 days has increased from less than 28 yuan to 46.24 yuan, an increase of 60%, and the payback period only takes a few dozen days.

Compared with the uncertainty of buying coins directly and waiting for the market to come, the investment strategy of mining and hoarding coins in a bear market and trading in a bull market is effective again. In fact, many people regard mining as a way of participating in fixed investment. Regardless of the market conditions, mining can bring continuous income.

If you read this and feel a little interested in mining and want to buy a few machines to participate, my friend, you may be overthinking it.

01
For ordinary people, the threshold to participate in mining is too high

In our common sense, cryptocurrency mining is the process of using computing power to participate in project governance and obtain cryptocurrency rewards. For example, miners who mine Bitcoin blocks can currently receive 12.5 BTC as a reward from the system each time (the income also includes the handling fee for the packaged transaction, which is negligible due to the small amount) . Since the working principle is similar to mineral mining, both require work to earn income, hence the name "mining".

Like all other industries, after years of development, mining has completed the transformation to specialization and scale. It does not mean that individuals cannot participate in mining by directly purchasing mining machines. As long as you know what cryptocurrency you want to mine, what encryption algorithm to use, what mining machine to use, and how to buy a mining machine, then transport it to a mine or connect it to a mining pool and let someone else do it for you, or you can clearly configure and optimize the parameters yourself, and can solve problems such as freezing and abnormalities during operation, and do not mind the noise of the rumbling equipment or the high electricity bills...

The following table shows the mining revenue statistics provided by the Whattomine website. It can be seen that there are currently hundreds of cryptocurrencies that can be mined, and nearly a hundred mining machines in operation:

▲ The mining income calculation table that gives ordinary people a headache Source: https://whattomine.com/miners

But for most people, the above process is obviously not fun. In addition, as computing power grows, mining at home is no longer profitable, not to mention that chip production capacity is limited, professional mining machines are centralized and purchased by large companies, making it increasingly difficult for ordinary people to purchase mining machines.

Mining by purchasing mining machine assets has become a thankless task, which makes many people shy away from mining. Mining is an essential part of digital cryptocurrencies such as Bitcoin and other PoW consensus mechanisms. So for ordinary people, is there still a chance to participate?

02
Cloud mining came into being.
But what makes a good cloud mining service?

The best way to observe the development trend of an industry is through authoritative industry conferences. The Bitcoin 2019 conference, which just ended in the United States, was an industry event hosted by BTC Inc. The mining company topic was an important part of the conference, and many mining institutions participated in the conference and shared their experiences. In addition to traditional mining companies, several global cloud mining companies attracted people's attention, especially Bitdeer, a cloud mining company based in China.

Cloud mining refers to mining by calling remote cloud computing power. In this model, the company providing cloud mining services owns the mining machine computing power, is responsible for installation, maintenance and cooperation with the most efficient and reliable mining pools, and provides users with overall package services. Users can rent the required computing power from the company.

In short, the main features and advantages of cloud mining are that the model is easy to understand, no technical knowledge is required, and a small investment is required to participate in mining. Users do not need to know the specific details such as hardware information, installation and configuration. For ordinary people, the financial and technical thresholds are much lower than other mining methods.

The world's first cloud mining company was founded in 2013, and its service was quickly welcomed by users after it was launched. However, this rapid development momentum changed in the bull market of 2017: a large number of fraudulent platforms were under the banner of cloud mining, but in fact they only recruited members through the website and charged fees, but in fact they did not provide mining services. For a time, cloud mining became synonymous with scams and Ponzi schemes.

Forbes wrote in a mining interview in 2016: The market lacks trustworthy mining service companies, and the brand of cloud mining service companies and their reputation for being reliable and trustworthy are extremely important.

Of course, in addition to this, competitive costs, high-quality and stable services are also important factors that cloud mining companies cannot ignore.

This provides ordinary people with a simple screening rule for cloud mining companies. BitDeer, which is a strategic partner of Bitmain and has reached cooperation with 8 of the world's top mining pools, has become one of the obvious choices.

03
BitDeer returns the mining option to ordinary users

BitDeer announced the launch of a computing power sharing platform on December 12, 2018. Within 10 minutes of the launch, the number of users who purchased shared mining machines exceeded 10,000. Three days later, the number of users increased by 1,350%. Currently, the number of active users per month exceeds 1 million, covering 233 countries and regions around the world. Behind these development data is the Taobao-style user experience of " 1 minute operation, 10 minutes mining, 24 hours of income ", which truly realizes the zero threshold for ordinary people to mine.

BitDeer is a cloud mining platform that cuts and allocates real computing power. It provides a flexible leasing plan for computing power size and leasing duration, and cuts computing power into single units, which users purchase by units . Taking Bitcoin as an example, you can choose product packages with a cycle of 120 to 360 days in units of 50TH. According to the current market conditions, the theoretical income is 158 yuan/day. If the market remains optimistic, the annualized rate of return is still considerable.

In the current market upswing, with the rapid rise of the market, mainstream mining machines are out of stock. Whoever can obtain computing power resources the fastest will have the right to speak in the mining industry. The powerful computing power acquisition ability is inseparable from the support of strategic partner Bitmain. According to BitDeer’s sharing at bitcoin2019, the platform can quickly obtain the latest models of mining machines.

For mining, electricity is the biggest expense. This is also the baton that many mining pools use to migrate like migratory birds during the flood and dry seasons. The best way to reduce costs is to be sufficiently dispersed and seek low electricity prices around the world. As shown in the figure below, BitDeer has established mining farms in countries around the world, and the electricity costs after sharing are more flexible and competitive.

Mining is the same as mining minerals. Only under normal working conditions can there be output. Therefore, stable operation and no downtime are the most important operating indicators. In other words, as a cloud service, the best service is a worry-free and imperceptible user experience. With the help of professional management of the mine, sufficient mining machine reserves and positions, and automated power and computing power management systems, BitDeer has achieved a high level in the industry in operation and maintenance management: computing power fluctuation rate is 1~2%, mining machine online rate is 100%, and mining machine downtime rate is 0%.

Since users rent computing power instead of physical hosts, the platform provides users with the function of switching mining pools at any time. During the service opening period, users can transfer computing power to the eight mining pools that BitDeer cooperates with at any time and participate in the block generation of each mining pool, providing users with maximum flexibility. In this process, users do not need to have any technical foundation and can leave whenever they want.

It is worth mentioning that the cloud mining industry is in a period of rapid development. The industry still lacks supervision from credible third parties, and industry autonomy is even more blank.

BitDeer has made its own voice on how to regulate the development of the industry . In May this year, BitDeer held a mining summit, at which a high-standard draft of cloud mining standards was released, which provided suggestions for industry standards from two dimensions: computing power and mining machines and mining farms. The draft proposed real and transparent computing power indicators, as well as access standards for mining farms and mining machines. In the face of the situation of various mining industries in the industry, this high standard may become a criterion for industry self-examination and market competition.

04
Summarize

Jiang Zhuoer, a senior mining practitioner , once said: Mining is a relatively stable thing in the long run. Even if you bought some too expensive machines during the bull market, historically, all the mining machines for mainstream currencies have paid back their investment.

With the development of the industry, mining is no longer suitable for ordinary people to participate directly. If you want to obtain Bitcoin in a safe, reliable and transparent way, choosing a stable and reliable cloud mining service may be a better choice.