A Little Miner's Mining History (Part 2) (End)

12.

The first time I bought an ASIC mining machine, I suffered a huge loss, which left me with a traumatic experience with these mining machines. Some of my friends also bought several Bitcoin mining machines at a high price, but only they know how painful it was for them.

In the meantime, I paid attention to the mining of some small currencies. I think the only two I actually mined were XDAG and MGD . There may be others, but I can’t remember them.

MGD, the English name is MassGrid, and everyone should have heard of its Chinese name, which is "Malego Coin", also known as Grass Mud Horse Coin, or Alpaca Coin. The original English abbreviation was mlgb, and later it was changed to mgd. Hearing this name, you may think that this coin is for fun, and it is also true from the lock-up situation and the price. However, this coin may not really be for attention. MassGrid is a decentralized high-performance computing network. Well, this coin is for fun.

Total MGD: 168 million

Cloud mining: 40% (67.2 million)

Freezing: 25% (Unlocked at 42 million global temperature 35° - basically the world is destroyed)

Team: 10% (16.8 million to be unlocked in 2100 - I can’t wait for that to happen)

POW mining: 25% (42 million, 288 blocks per day, 50 MGD/block, 33,430 blocks*50=1,671,500) frozen + 35% of the team’s coins. We will never see them unlocked in this lifetime. The maximum circulation of MGD in this lifetime is: 109.2 million

This coin was crowdfunded before 1994, but I did not participate at that time. I started to pay attention to it again in a group. There was a big mgd user who traded CXmgd every day, so I believed it and started to mine mgd. This coin is too niche, and it was launched on a very small mining pool and a very small exchange. At that time, transactions were mainly conducted over-the-counter.

When I started mining MGB, the price of MGB had dropped from more than 20 yuan to about 5 yuan. After mining for a while, I felt that the mining was too slow, so I simply bought some over-the-counter. When I bought it, it was about 3 yuan, which had dropped 90% from the high point. Now the price is 0.3 yuan, which has dropped another 90%. Have you seen a coin that has dropped 99%? MGB is one of them.

The mgd wallet is also very interesting. The balance is displayed in the wallet, but it does not show the real price. For example, one mgd is worth 0.3 yuan, but the wallet shows that one is worth more than 500 yuan. So every time I open the wallet, I feel very rich. Such a funny coin, but the more it falls, the more I believe in it. Anyway, I bought it and put it in my wallet. I don’t care about it. I have a lot of zero coins in my hand, so I don’t care about this one.

13.

XDAG is a new generation 3.0 public chain based on directed acyclic graph (DAG) infrastructure.

Listen to this introduction, and then look at this price trend:

Those who believe say that this is the era of picking up money, while those who don’t believe look at it with concern for the mentally retarded.

xdag is also a niche coin. It was not available on the exchange at the beginning, and now it is only available on an unknown small exchange. In the early days, mining xdag was extremely profitable. A mining machine was estimated to have a few hundred yuan of income a day. If there was a "block explosion", it was possible to earn thousands of yuan a day . "Block explosion" means that there is a chance to mine a lot of coins in a certain block. At the beginning, the coin price was high. If there were hundreds or thousands of coins in a day, it would be equivalent to mining other coins for a month, and this was just a mining machine.

Because it could only be traded over the counter, and the price of ETH was very high at the time, mining stopped after just a few days.

There is also a coin called nilu .

This is an even smaller coin, so small that I didn’t even remember that I had mined this coin after writing the previous paragraph. It seems to be related to smart contracts. I checked, but couldn’t find much information about this coin. It’s too small. I guess 99% of people on Bihu have never heard of it.

The impression that mgd and xdag give me is that they are niche but very awesome projects. I hope that these two projects can survive into the bull market and become 100x or even 1,000x coins.

14.

By the second half of 2018, the situation was getting worse and worse, so I didn’t have the energy to continue mining anymore, and my mining experience was almost over.

Finally, based on my little experience, I would like to share some thoughts on mining with graphics cards. This is mainly for small miners. I will say whatever comes to mind:

1. Graphics card mining machines and ASIC mining machines (represented by Bitcoin mining machines) are two different types of mining machines. When the market is good, the profits are very high. When the market is not good, because graphics card mining machines are more versatile, they will be relatively value-preserving . For example, grin some time ago could also be mined with graphics cards.

2. Mining is a good business in the cryptocurrency world. I personally think it is better than cryptocurrency speculation, but like cryptocurrency speculation, it carries huge risks . We can see the glory of Bitmain in early 2018, and we can also see the recent layoffs of Bitmain.

3. Mining is a highly profitable industry . In the next bull market, I will continue to choose mining.

4. For small miners, the first thing to consider is a suitable location. Home is definitely not an option. Once the location is settled, everything else will not be a problem.

5. I call miners with less than 30 mining machines small miners or family miners. They have small investment (about hundreds of thousands), small risk (relatively speaking), flexibility (one person can take care of it), low subsequent costs (electricity, depreciation and maintenance), and huge profits (it is no exaggeration to say that you can get your money back in one or two months if you seize the opportunity).

6. Never calculate the static payback period before purchasing a mining machine. In a bull market, computing power grows very fast (profits decrease), and in a bear market, mining machines depreciate very fast (cannot pay back). The payback period, like the price, is very difficult to predict. My advice is to calculate your ability to bear risks, rather than calculating the payback period.

7. Mining should focus more on recovering the investment than cryptocurrency speculation. When the price of the currency falls, you will face endless electricity bills and an infinitely long recovery period.

8. In my experience, the static payback period of most mining machines is about 6 months. This is a reference. If the static payback period becomes 3 months at a certain moment, it is almost time to consider selling part of the mined coins. If the static payback period becomes two months or even shorter, then the mined coins should be sold on the same day. This kind of business will be rushed by everyone, so it often does not last for a few days. Either the computing power increases significantly and the income declines, or the price cannot be maintained. If you do not smash the market, the big miners will do so. Therefore, the 6-month static payback period can be used as a reference.

9. No matter how highly a new coin is promoted, don’t have faith in it. For example, there are plenty of opportunities to hoard mgd, xdag, and the recently popular grin and pow coins .

10. Refer to Article 8. You can store the mined coins appropriately and do not rush to sell them .

11. If conditions permit, mining is equivalent to an asset allocation, or a form of fixed investment that diversifies risks.

12. Mining is to maintain the computing power network, and mining is a sacred cause.

Author: longbtc
Link: https://www.jianshu.com/p/d87c5e596cc3
Source: Jianshu The copyright of Jianshu belongs to the author. For any form of reprint, please contact the author for authorization and indicate the source.