Bitcoin is soaring, Ethereum 2.0 is coming, how about investing in mining?

Recently, Bitcoin and Ethereum have had a good increase, which not only makes investors who have been hoarding coins have good returns, but also makes Bitcoin and Ethereum mining once again a hot topic among investors inside and outside the circle.

So what is the mining income of Bitcoin and Ethereum at this stage?

Let's look at Bitcoin mining first.

This is the longest and most complete industrial chain in the entire cryptocurrency field. Now ordinary investors or large funds want to participate in Bitcoin mining. Basically, they don’t need to buy mining machines like early miners and then operate and maintain mining by themselves. They only need to find relevant mining machine sellers in the market and directly sell them Mining machine hosting, you don’t have to worry about daily operation and maintenance at all; it’s even easier to find some cloud computing power companies to buy mining cloud computing power directly, and just collect bitcoins according to the percentage of computing power.

I remember that when the price of Bitcoin was still around US$10,000 in early 2020, the industry reflected that it would take about one and a half or two years to buy mining machines or cloud computing power, after deducting electricity and operating expenses. able to pay back.

Now, although the price of Bitcoin has nearly doubled, and the coins obtained by miners have greatly increased in price, the number of miners participating in mining has also increased significantly, which makes the coins obtained by mining not as much as before. The price of mining machines soared.

In addition, according to recent news in the market, Bitcoin mining machines are now seriously out of stock, and the futures have been sold until March-April next year. If the price of Bitcoin continues to rise, it is estimated that there is a high probability that mining machines will continue to be out of stock next year.

In this way, the time for the miners participating in mining to pay back the cost is probably not much different from that in the past. It is very likely that it will still take one and a half years or even longer, that is, to return to the cost in May and June 2022.

Therefore, in this round of sharp rise in currency prices, it is the early miners who really earn the most, and now participating in mining does not have much advantage in terms of income.

In addition, participating in mining now, if the payback time is scheduled to May and June 2022, a key rhythm is involved: how long will the current round of Bitcoin market last and how high can the currency price rise?

If the price of Bitcoin can continue until the end of next year or longer, and the price of the currency can rise to more than 40,000 US dollars, it is possible that the miners participating in mining now will benefit from the continuous rise of the currency price and even start to make profits in advance; but if If the market is not as optimistic as expected, there are potential risks in participating in mining now.

Let's look at Ethereum mining again.

Due to the launch of the Ethereum 2.0 beacon chain, the current Ethereum mining is divided into two categories:

One is to continue to mine with the current graphics card mining machine, and what is mined is the currency of Ethereum 1.0, which is the currency that we can buy and transfer on the exchange now.

The other is to participate in the beacon chain mortgage and mine Ethereum 2.0 coins. That currency cannot be transferred and used now, and it may not be used until at least 1-2 years later.

For the mining of the beacon chain, since some service providers have launched their own node services, ordinary investors only need to send ether to these service providers to participate in this mining. The risk here is mainly that there is a problem with the mortgage contract of Ethereum, or a problem with the node service of the service provider. If there is a problem with the Ethereum contract, it is a problem for the entire industry, and it cannot be solved by us. It will take time to test whether the service provider's node service is reliable, and it is not clear yet.

Therefore, to participate in the mortgage mining of the beacon chain, we only need to choose a large service provider with good reputation, and there is basically nothing to worry about.

For Ethereum 1.0 graphics card mining, the current situation is similar to that of Bitcoin mining machines. Its key component graphics card is also seriously out of stock in the market at present, and the price is soaring. More importantly, the mining duration of Ethereum 1.0 may not be very long, it depends entirely on the progress of Ethereum 2.0.

If the progress of Ethereum 2.0 is fast, once Ethereum 1.0 is merged into 2.0, the mining of 1.0 will be terminated. According to industry estimates, I am afraid that 1.0 mining can last for about one and a half years. After the 1.0 mining is terminated, the graphics card mining machine of Ethereum will be eliminated.

Therefore, the benefits of participating in Ethereum 1.0 mining are limited and there are too many uncertain factors, so it is worth being cautious.