How can a newbie join the mining industry? Is Bitcoin mining profitable at present?

Bitcoin mining can be roughly divided into three forms:

1: Buy mining machines and build a mining farm by yourself. The prerequisite is to have stable and cheap electricity resources (electricity price is less than 0.3 cents, stable, and unregulated); a professional technical team to maintain the daily operation of the mining farm; cheap mining machine procurement channels; and output monetization channels.

2: Large mining farms directly purchase computing power contracts, referred to as cloud computing power, which does not require the maintenance of mining machines, and the investment is relatively small. It is necessary to investigate the real and reliable information of the mining farm to prevent running away. No ownership of mining machines

3: Directly cooperate with a comprehensive mining service company. The company can provide a one-stop service of mining machine sales, hosting, and output recovery. It owns the mining machine. Investors only need to purchase the corresponding mining machine to enjoy mining, and the income is settled daily, which is worry-free and reliable. I am currently working at Renren Mine Comprehensive Service Company, and welcome exchanges and discussions.

Bitcoin is obtained by running complex program algorithms. In theory, anyone can create Bitcoin by downloading and running software. But in fact, with the development of Bitcoin, the competition for mining equipment has intensified. It is very difficult to mine Bitcoin, and it requires extremely high computing power to barely mine it. With the large-scale use of mining machines, the trend of rapid growth continues. The increase in difficulty ensures the security of Bitcoin while also making it extremely difficult to obtain new coins. So is mining still profitable now? How to calculate the investment and payback period?

Taking the Antminer S9 with a hashrate of 13.5T as an example, the mining pool earns 1TH/s * 24H = 0.00008211 BTC per T in 2018-3.6 BTC

The number of bitcoins that can be mined every day is only 0.00008211 * 13.5 = 0.0011 BTC, and this number is rapidly decreasing as the difficulty increases. If you try to mine with an ordinary home computer, then Bitcoin will almost never belong to you. You may even spend several years without mining a single bitcoin, wasting electricity and labor costs.

A simple calculation:

Taking the Antminer S9 as an example, the output of one mining machine is currently around 0.001 BTC (ignoring the price and output changes).

Gross profit = 0.001*70000 coin price = 70 yuan

Electricity fee = 0.3*1.4*24 = 10 yuan

Internet fee + labor fee + maintenance fee is deducted at 20% of profit

Net profit = 70*0.8-10 = 46 yuan

Payback period: 19500 mining machine price/46=423 days

Let's compare it with the Shenma M3 mining machine. The Shenma M3 currently produces around 0.0096 BTC per day.

Gross profit = 0.00096*70000 coin price = 67.2 yuan

Electricity fee = 0.28*2.15*24 = 14.5 yuan

Internet fee + labor fee + maintenance fee is deducted at 20% of profit

Net profit = 67.2*0.8-14.5=39.26 yuan

Mining machine price 8500/39.26=147.7 days

Many netizens asked me in private messages, "Can mining still make money now?"

I tell you clearly that you can make money, you can definitely make money. If you consider the electricity cost and the mining machine cost, they are nothing compared to the future increase of Bitcoin! Are you mining Bitcoin at the current price? If you calculate it this way, you will always lose money. Let me tell you, from the middle of last year to now, Ethereum has taken 10 months to recover its investment. Now looking back, if you wanted to mine it at that time, it would actually recover its investment in a few days!! It’s mainly the increase. Do you understand? You are not mining Bitcoin, you are mining faith, you are mining the future, you are mining the next thing that will change the world!!

Let’s assume, let’s make the worst assumption, that Bitcoin is a bubble. Well, what is a bubble? It expands, then quickly dissipates, and the last one gets cut! Throughout the history of Bitcoin, which bubble has burst in its infancy? Isn’t it when everyone in the world discusses Bitcoin like they discuss what to eat every day, that’s when the bubble bursts! !