In the first half of this year, thanks to various incentive mechanisms of DeFi, Ethereum's entire network fee income reached 26,138.62 Ether (approximately 108.9 million U.S. dollars), and the single-day fee income of Ethereum reached 37967 on September 2 Ether coins, so most of the miners in the first half of the year turned to dig Ethereum. However, with the increase of Ethereum gas cost and the serious network congestion on the chain, the income of Ethereum miners began to decline, and many miners turned to mine Bitcoin one after another, and Bitcoin mining ushered in a new upsurge.
Generous fee returns, smooth public chain network, attractive static payback cycle, extremely high mining machine value-added dividends, plus this year is another important year for Bitcoin's third halving, according to previous halvings After the market analysis, Bitcoin broke through 20,000 U.S. dollars and set a new high is a high probability event. This series of benefits attracted many people to mine. Since Bitcoin mining is a piece of sweet pastry, how should ordinary people participate?
Generally speaking, ordinary users can participate in Bitcoin mining in the following three ways: 1. Purchase cloud computing power; 2. Joint mining; 3. Purchase mining machines to host the mine.
Cloud computing power
Cloud computing power mining refers to the mining of digital currency by remotely calling the computing power of the mining machine. Users only need to buy or rent the computing power required from the computing power platform, and then they can lie down and collect coins. This is mining this year. The most common way. However, the cloud computing power has a certain period. Once the mining revenue cannot cover the electricity expenses and the duration exceeds 90 days, the cloud computing power will start liquidation.
The characteristics of cloud computing power are simple, convenient and fast. The disadvantage is that the cloud computing platform is uneven, the premium is high, and the value-added dividend of the mining machine cannot be enjoyed. This brings extremely high risks and high costs to users in mining. Some platforms do not have real mining farms and mining machines. In addition, the platforms are small in scale and weak in risk tolerance. In the event of a collapse in the price of Bitcoin and a "mining disaster", the risk of closing down or running away is very high.
Joint mining
Joint mining, like computing power, is also a one-stop service, from group purchases of mining machines, shelves, custody, operation and maintenance, maintenance, migration, access to mining pools to sale of residual value, a package of activities related to mining All are completed by the joint mining service provider, and users can lie down and collect coins after paying, which is very simple and convenient, saving time and effort.
Compared with cloud computing power, the main advantages of joint mining are: First, the price is lower. Generally speaking, the price of cloud computing power products is more than 30% higher than the price of joint mining products of the same specification. Secondly, with the ownership of the mining machine, you can enjoy the bonus and residual value of the mining machine. Finally, the payback period is short. The joint mining machine's sharing model binds the interests of service providers and users together, which is conducive to promoting the refined operation of service providers and shortening the payback period.
Like cloud mining, joint mining also has risks, and the biggest risk is still platform risk. Therefore, when choosing joint mining, you need to choose a platform with strong strength, good reputation and long operating time.
Buy miners to host the mine
In addition to cloud computing power and joint mining machine mining, bitcoin mining can also be hosted by purchasing physical mining machines to professional mines, and use physical mining machines to mine, but this method is only suitable for experienced and relatively large-scale mining Big miner. Because the price of the mining machine is relatively expensive, the model and configuration of the mining machine are different, and the computing power varies greatly, and the final mining output is also different. Secondly, mining machines have very high requirements on the managed mine. The mine must not only do the most basic temperature and humidity control, but also take measures to prevent dust and static electricity. In addition to the environment, it also has an impact on the power stability of the managed mine. Requirements, due to the high complexity of the software and hardware of the Bitcoin mining machine, frequent power outages will cause the damage rate of the various parts of the mining machine to increase. After the power supply is restored, the mining machine’s computing power debugging requires a certain time, so the power stability of the mining farm The requirements are also high.
As with joint mining, if you purchase a mining machine to host the mining farm and own the ownership of the mining machine, you can enjoy the dividends brought by the value-added mining machine, and the cost will be lower, but you need to be familiar with the model and configuration of the mining machine.
With the rise of Bitcoin mining boom, it will drive the price of Bitcoin and related derivatives to rise, but there are also certain risks in mining, such as the collapse of Bitcoin prices. In order to avoid the losses caused by this situation, miners We can buy BitOffer's Bitcoin put options for risk hedging. After hedging is enabled, even if the price of Bitcoin drops, the options can bring huge profits to miners, which can make up for the losses caused by the collapse of Bitcoin prices.