Bitcoin mining machines have increased 30 times in two years

Finding Bitcoin in Beijing

Zhongguancun has never lacked young people who are innovative and willing to try new things. Even Bitcoin, which is circulated in the "geek" circle with super high computer skills, has never lost people who are fascinated by it because of its professionalism and niche. This invisible and intangible virtual currency can be consumed here like RMB.

In March this year,

The first Bitcoin payment

Garage Coffee: Directly redeemed by enthusiasts

Garage Coffee is a famous base for entrepreneurs in Zhongguancun. This small coffee shop, with a simple layout, is always occupied by young entrepreneurs who discuss their next entrepreneurial path in a low voice. In this place full of novel ideas, Bitcoin is unsurprisingly used as a real currency to buy coffee.

Huang Fen, the person in charge of Garage Coffee, said that the first Bitcoin business in the store was in March this year, when an American student named Jack asked if he could use Bitcoin to buy coffee. "At that time, one of our partners was researching Bitcoin and was worried about where to find it, so we agreed." However, Huang Fen told reporters regretfully, "Before we got the Bitcoin, it was exchanged by the partner who was researching Bitcoin, so we ended up accepting cash."

However, since then, the news that Garage Coffee can accept Bitcoin has spread like wildfire, and many netizens who own Bitcoin have left messages on Weibo, saying that they must try for themselves how to consume Bitcoin.

Huang Fen told the reporter that Kuku Coffee has done several transactions using Bitcoin, but without exception, the store only received RMB in the end. "Every time we receive Bitcoin, there will be Bitcoin enthusiasts who convert it into RMB at the exchange rate of the day and exchange it away. In other words, Kuku Coffee has never actually received any Bitcoin."

1000 kWh of electricity in three months

Mined 100 Bitcoins

Senior players: The price of mining machines has increased from 10,000 to 300,000

"Maybe because I graduated from the computer science department, I am particularly interested in Bitcoin." At Garage Coffee, the reporter met Tian Jia, a 26-year-old young man who graduated from the computer science department of Tsinghua University. He can be considered a veteran Bitcoin player. This boy, who speaks softly, seemed a little excited when talking about his first contact with Bitcoin.

"At that time, there was a report abroad called "The Most Dangerous Currency in History", and I learned that there was a currency called Bitcoin." After tracing back to its origins, Tian Jia also planned to start mining to earn this computer-based currency. "Although excavators are becoming more and more advanced, mining with graphics cards is the most cost-effective."

In 2011, he spent 10,000 yuan to buy a mining machine in Zhongguancun. He used this mining machine to mine 100 bitcoins in three months. "Taking care of the machine is more tiring than taking care of people." Tian Jia recalled that in his small rental house at that time, there was a mining machine, which used more than 1,000 kWh of electricity in three months just to mine bitcoins. The mining machine had a strong heat dissipation, "even the clothes that had just been washed would dry in a short time in the house."

However, Bitcoin was not as valuable as it is now a few years ago. One Bitcoin was worth 20 US dollars, which was already a high point. Tian Jia used some of his Bitcoins to exchange for the high-end computer he had long dreamed of. In his opinion, this deal was quite cost-effective, and it also aroused his interest in Bitcoin.

Today, the price of a Bitcoin mining machine has increased from 10,000 yuan to 300,000 yuan, but its performance is much better than before. According to industry insiders, the old machine used to take 100 days to mine 1 Bitcoin, but today's machines can mine 3.5 Bitcoins a day.

Support Bitcoin payment

Taobao merchants: Ask more, use less

As the influence of Bitcoin gradually expands, some Taobao merchants are trying to allow customers to pay with Bitcoin.

Taobao has a wide variety of products that support Bitcoin payments, including mobile phone cases, shoes, clothing, etc., but they are mainly small-value products. The reporter saw in a Taobao store that mainly sells electronic products and peripherals that all the products in the store support Bitcoin payments, and the page of each product also states "supports Bitcoin payments."

How to pay with Bitcoin? The reporter consulted the store clerk Mr. Xu and learned that before buying the goods, consumers can ask the store clerk to pay with Bitcoin, and then the merchant will calculate the Bitcoin price of the goods based on the Bitcoin exchange rate of the day.

Mr. Xu gave an example: If the price of a mobile phone case is 15 yuan, and according to the Bitcoin exchange rate on May 19, 1 Bitcoin can be exchanged for 710 yuan, then the price of this mobile phone case is about 0.02113 Bitcoins.

But Mr. Xu also said that although many people asked, few consumers used Bitcoin transactions. "The main problem is that Bitcoin transactions are not guaranteed, and consumers cannot rest assured."

Mr. Xu admitted that the reason Taobao stores support Bitcoin payments is mostly for novelty and fashion. Currently, most transactions on Taobao are conducted through the Alipay system, but Taobao has not set up a payment platform for Bitcoin, and there is no credible third-party guarantee platform in China to guarantee shopping with Bitcoin.

Promise

One Foundation received 235 Bitcoin donations

“It has been converted into RMB.”

During the Lushan earthquake, the charity organization One Foundation was reported to have accepted Bitcoin donations, which was the first time that a domestic charity organization accepted Bitcoin donations.

Huo Qingchuan, director of the One Foundation's Cooperation and Development Department, announced the Ya'an earthquake bitcoin donation address on Weibo on April 21, and said, "We have received an intended donation of 50 Btc (equivalent to RMB 40,000 according to today's exchange rate). We will entrust the China Bitcoin Commune to sell the raised bitcoins. We welcome geeks and hackers to donate bitcoins to the One Foundation. This is the first NGO in China to accept bitcoin donations, and it is also the first time that bitcoin has become a donation in China."

Data shows that the account received a total of 235.21203877 bitcoins from April 21 to April 25. A staff member of One Foundation told reporters that after entrusting BitChina to sell these bitcoins, the RMB proceeds have entered the account of One Foundation. "One Foundation's account cannot directly accept bitcoin donations, they must be converted into RMB first." A staff member of One Foundation told reporters.

Promise

Bitcoin is produced every 4 years

Halving extreme value 21 million

Veteran player: Bitcoin will continue to appreciate under quantitative easing

Since the beginning of this year, Bitcoin has appreciated wildly, making this currency, which was originally only circulated in a small range, gradually enter the eyes of ordinary people. The "roller coaster" exchange rate has made many financial industry leaders shudder.

"I play with Bitcoin not for making money or speculation, I just think it's new." Tian Jia said that although Bitcoin appreciated several times within a month, with the highest exchange rate to the US dollar being 1 to 266, Tian Jia was not moved.

He explained that this year coincides with the halving of Bitcoin production, and every time this happens in the future, the value will appreciate significantly. According to the calculation formula for Bitcoin production, the output will be halved almost every four years, eventually reaching an extreme value of 21 million. And this currency without central bank control will continue to appreciate compared to the real currency that is constantly quantitatively relaxed. Currently, about 11 million Bitcoins have been produced.

However, some articles also stated that withdrawing bitcoins requires a key of up to hundreds of digits, and most people will record this long string of numbers on their computers. However, problems such as hard drive damage often occur, which will cause the key to be permanently lost, which also leads to the loss of bitcoins. "A rough estimate is that the number of lost bitcoins may reach more than 1.6 million," Tian Jia said.

"I am happy to see the promotion of Bitcoin, but the promotion process will be very difficult." Tian Jia told reporters that now in some Bitcoin forums, there are software such as MyWallet that facilitates the use of Bitcoin. "It is just like shopping with bank online banking. It is very convenient in places where Bitcoin can be spent."