How exciting is mining in 2020? The sharing of several big brothers made me cry
2020 is a magical year, not only because of the ravages of the epidemic, but in the encrypted digital world, if you speculate in one-year coins, it is better to earn more than holding Bitcoin and Ethereum at the beginning of the year. You have exhausted your energy and money. Hoarding coins is not as good as going to major DeFi every day to move bricks and make more money in transactions. The feat of UNI and other four major airdrops throwing hundreds of millions of dollars almost subverted our investment concept.
Of course, such things as epic-level wool are rare, except for the wool party, miners may be one of the most low-key groups of earning money this year. They don’t need to swipe 1,000 addresses and spend hundreds of dollars in handling fees to do left-handed and right-handed mechanical operations. They only need to buy the mining machine and host it in the mine, and then they can go home and sleep. The market in the past few months, presumably the daily after-sleep income can make people look radiant.
On the morning of January 7, the "Value Era Industry Summit Forum and 2020FAT Awards Ceremony" was held in Beijing. On the mining theme roundtable, we invited Qingqing, CMO of Yuchi, Ji An, head of the financial business of Mars Cloud Mining, Liu Genghua, COO of Keyin China, Michael, co-founder of Geek Mining, and Yang Yumei, managing partner of Node Capital, to share their first-line experiences. Daniel, the founder of Bukong BUKON, served as the host of this session.In this discussion, Qingqing pointedly told us through the data how much money miners made this year: "At this time last year, the price of Ethereum was about 130 US dollars, and the price of Bitcoin was about 7,000 to 8,000. Today, Ethereum has doubled nearly Nine times, Bitcoin has more than five times. Compared with this, Bitcoin's entire network computing power has only increased by 50% in the past year, and Ethereum has doubled. Compared with the increase in currency prices, we can see our Earnings are constantly increasing.”
Ji An explained the benefits of "Mining Dafa" by observing the reactions of those who stepped into the air around him.
"Yesterday (January 6), the price of the currency rose sharply and exceeded 37,000, and then I discovered a very amazing thing, that is, everyone was very happy from the end of 2017 to the beginning of 2018, but the excitement this year was almost meaningless. Ask some A friend discovered a problem, that is, through the baptism of the bulls and bears in the past few years, a lot of coins in everyone's hands have been swallowed up by the fluctuation cycle, leaving only two types of winners, the first type is the coin hoarding party, who took BTC, and the second type The second category is miners, who have discounted bitcoins, which are locked and released linearly. You have bought a lot of coins but you can’t hold them, but if you buy a batch of machines near 312 and dig until now, you can Hold a batch of coins, which is why this year is a very exciting year for miners.”
Although mining is good, it is inevitable for beginners to consider many aspects. These old drivers also gave some opinions.
Liu Genghua said a very interesting point of view, that is, regardless of mining or buying coins, a market risk must be considered.
"Don't look at institutional buying and buy it hard. Institutions have more money in gold and oil. Gold has risen and fallen. Oil has fallen from more than 100 US dollars to negative. Now it has returned to a relatively stable price. Institutions buy It does not mean rising all the time. Therefore, everyone should take a serious look at market risks, including the leverage ratio of the entire market. I think 312 is a wake-up call. You can re-check the trend of gold and oil, and it may be better to calm down."
Yang Yumei gave a more specific reminder, "The water of mining is still quite deep. Don't follow the trend blindly. You still have to pay attention to choosing the location and time. When choosing a partner, you must look at the brand strength. Just like last year, there were many activities. For permanent mining, everyone investing must be clear about whether you want stable income or short-term quick income.”
Michael, who directly serves C-end miners, also pointed out some misunderstandings of novice mining.
"If you tell the current non-professional practitioners that mining should be counter-cyclical, he will not understand why it is counter-cyclical, and he will not say that he entered the bear market like an old miner (mining was my net income at that time, The mining machine can make money and be able to store coins), he will say that you only need to tell me how much the payback period is. For retail investors, what he cares about is the payback and profit margin.
In order to deal with users who want to simply understand and invest, we will provide a risk warning when we launch a product. I will tell you what impact currency price fluctuations will have on your investment. If you can accept the recovery in a year and a half The principal, if you can accept that Ethereum will pay back its capital in one year, it can only be doubled to three times in three years. Whether you can accept this profit rate, most people will figure it out by themselves. "
For more data sharing and experience introduction of veteran drivers, please read the full text below.
The following is the essence of the round table organized by Odaily, enjoy:
The following is the essence of the round table organized by Odaily, enjoy:
Daniel: First of all, please introduce yourself briefly.
Yang Yumei:Hello everyone, I am Yang Yumei from Node Capital. Node Capital is a blockchain-focused investment company founded in 2016. It invests in projects such as Huobi.
Michael：Hello everyone, I am Michael, the founder of Geek Mining and an old miner. I officially started investing in mines last year, thank you.
Liu Genghua:Hello everyone, I am Liu Genghua from Collin Capital. Collin Capital is a capital established in Australia in 2015. We started as a mining company at the very beginning. In 2017, we invested in mining machine manufacturers, and now we are considered to have come out. Mining can also be said to be the bottom layer of our organization.
Ji An:Green:
Green:Hello everyone, I am Qingqing from F2Pool. Founded in 2013, F2Pool is the earliest Bitcoin mining pool in China. So far, our Bitcoin computing power is also ranked first in the world. During these seven years, we have supported mainstream currencies such as Bitcoin, Litecoin, and Ethereum. More than 100 currencies are supported in total, and more than 40 mining services are supported. Welcome new and old friends to join F2Pool.
Green:
Green:In fact, I am also doing a year-end review recently, mainly about the mainstream trend of mining in 2020 and what kind of methods we can use to enter the game in 2021. Just in line with today's theme, I have a few data to share with you.
I came to participate in FAT at this time last year. The price of Ethereum was about 130 US dollars, and the price of Bitcoin was about 7,000 to 8,000 US dollars. Today, Ethereum has increased by nearly nine times, and Bitcoin has increased by more than five times. How is mining revenue changing?
You can take a look. In the past year, the computing power of the entire network has only increased by 50%, and Ethereum has doubled. Compared with the increase in currency prices, we can see that our income is constantly increasing.
You may want to ask, since it is so profitable, why haven't the entrants and computing power increased on a large scale? The main reason for this is that Bitcoin mining machines cannot be shipped on a large scale due to the impact of chip production capacity. We all know that the futures mining machines of Shenma, Canaan Zhizhi and Bitmain have been booked for half a year, so it has been hard to find a machine for the past six months.
Ethereum also faces the problem of insufficient supply of raw materials (mainly graphics cards), and the delivery time is relatively slow. This puts a group of old miners who already have machines in a state of lying and winning.
Having said that the income is quite high, let's look at the expenditure. There are two main items for sarcasm, mining machines and electricity. Miners currently have a very low proportion of electricity bills. The proportion of electricity bills for graphics card mining machines is less than 10% all the year round, and the cost of electricity bills for Bitcoin mainstream mining machines is also less than 30%.
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Yuchi CMO Qingqing
Ji An:Yesterday, the price of the currency rose sharply and exceeded 37,000, and then I discovered a very amazing thing, that is, everyone was very excited from the end of 2017 to the beginning of 2018, but the excitement this year was almost meaningless. I asked some friends and found a problem, that is, through the baptism of bulls and bears in the past few years, a lot of coins in everyone's hands have been swallowed up by the fluctuation cycle, leaving only two types of winners, the first type is the coin hoarding party, who took BTC , the second category is the miner, he has a lot of discounted bitcoins, which are locked and released linearly.
You have bought a lot of coins but you can’t hold them, but if you buy a batch of machines near 312 and mine until now, you can hold a batch of coins, which is why this year is a very exciting year for miners.
Returning to comfort, I think it includes two dimensions. The first one is that it is very comfortable to directly participate in mining. Behind this comfort is the unremitting efforts of many mining service teams, so that many investors who invest in mining feel very relaxed at the front end. I became a miner by purchasing Mars Cloud Mining products in May last year.
At that time, they launched a product with low electricity price and fast payback. I remember that they approved more than 200 M20S units. I pooled money and bought more than half a hundred units with a few friends. Later, Mars Cloud Mine was in the service process. Constantly improving, I have been communicating with the small partners of the cloud mine and constantly raising opinions. In the end, the boss of Mars said that you should come directly to participate in this matter.
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Ji An, head of financial business of Mars Cloud Mine
Liu Genghua:For our employers, there are two things that are cool. The first is to have stable electricity prices and currency prices. After 312 last year, you must be able to hold the currency. For example, if you buy a Bitcoin mining machine, it depends on your call option. You can hold it.
The second point is that we have invested in mining machine chip manufacturers, so it was difficult for us to raise funds when the market was not particularly good from 2017 to 2019. We used money to do everything, and 312 has now become a traditional capital. Come to find out how we enter this industry. I can’t say that you buy BTC. They are very difficult to accept. It is better to ask them to buy fixed assets (mining machines). It is like a commodity investment. In order to ensure It can be used for hedging and hedging of income. Traditional capital is really willing to enter this industry through this. This is our second cool point.
The last point is our chip. We all know that the chip supply of the three major miners is very tight. In the past two or three years, we have been putting money into it, making chips and cooperating with manufacturers, so we also got Samsung’s 8nm and TSMC’s 7nm Chip orders, and then produce mining machines with better cost performance. I just said that their futures are sold until August. We still have some futures in April. We are also quite happy. Whether it is digging by ourselves or we sell some of them, this is quite cool.
Michael：One is from the perspective of miners. I thought it was a very good opportunity when the currency price plummeted on March 12 last year. I sold both houses in Beijing without telling everyone in my family. I started from (coin price) Eight thousand began to buy mining machines, so far it is really cool, every day I look at my wallet and I feel like this is the feeling that this person has spent.
From a career point of view, I started investing in Geek Mining in April last year. Geek Mining is a new recruit in the mining industry. From April to now, the sales of our mining machines have reached 200 million.
Our starting point is to minimize the threshold for mining. You can spend more than 10,000 yuan to buy a mining machine and host it to Geek, and then we will not let you step on it due to power outages, high handling fees, and repairs. earned income.
If geeks want to make money, they have to minimize the cost and keep the operation and maintenance at the end. The way of managing people with money is very effective, and we have also won the approval of customers. In April last year, the first batch of friends who bought Bitcoin mining machines have now returned their capital and made a profit. In August, our first batch of Ethereum mining machines have returned their capital in 6 months.
We used to push a batch of about 200 mines. At the end of the three days, we had to promote them. Now they are sold out in one day. Every day, people are asking when the second phase will be launched. I can’t get the machine now, can’t get it When it comes to the graphics card, that’s it. If you see that geeks are not pushing this mining machine, it’s not a particularly good time.
Yang Yumei:From the perspective of capital, we have invested a lot in the mining industry since last year. Let me cite three projects, one is an open source mining pool, one is Gold Mining Cloud, and the other is a spider mining pool.
Spider Mine Pool is focused on Ethereum mining, and now its computing power ranks among the top three in the world, and its development is very fast. Golden Hashrate Cloud and Geek are the same type of product, both for the general public to participate in Bitcoin mining and liquidity mining.
Open source mining pool, he is a new Filecoin mining project, the performance of the three months at the end of the year has been higher month by month.
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Yang Yumei, Managing Partner of Node Capital
Daniel: We all know that the mining industry is now more industrialized and structured. There are more participating institutions and fewer small-scale miners. Of course, small-scale miners can choose cloud computing power. At the same time, there are more financial products to serve the mining industry. more stable. We all know that as soon as the bull market comes, many people start to gear up and want to enter the game, but many people who entered the bull market in the past two times ended up with tragic results. So many people are hesitant now, can they still enter the venue now? What forms of entry are available for investors with different investments? Where is the risk point?
Yang Yumei:Let’s talk about entry first. Different participants can be divided into several entry methods.
The entry method of the general public is to participate in the one-stop mining service platform operated by professional institutions, which are platforms like Mars and Geek just mentioned
The other one will serve as the LP of our special joint fund, so that your rate of return will be guaranteed to be stable.
In the third aspect, if the volume is large enough, we can also cooperate with F2Pool. We also cooperate with some mining farms and mining pools to get more profits.
In terms of risk, now everyone thinks that the price of Bitcoin is very good, and they will worry about whether the higher the price is, the more dangerous it is. In the past two years, a lot of traditional capital came in. Especially in 2017 and 2018, I heard quite a lot of failure cases. There are several main reasons. Pay attention to the choice of location and time. When choosing a partner, it depends on the brand strength. Just like last year, there were a lot of liquidity mining. Everyone must know whether you want stable income or short-term quick income when investing.
Michael：When it comes to participation, geeks have always been oriented to C-end users, and our big customers also have them. We need to understand what we are doing from the very beginning? It is a service. If you tell the current non-professional practitioners that mining should be counter-cyclical, he will not understand why it is counter-cyclical, and he will not say that he entered the bear market like the old miners (mining was pure income at that time, The mining machine can make money and can store coins), you will not understand this when you tell him, he will say that you just need to tell me how much the payback period is, and for retail investors, what he cares about is the payback and profit rate.
In order to deal with users who want to simply understand and invest, we will provide a risk warning when we launch a product. I will tell you what impact currency price fluctuations will have on your investment. If you can accept the recovery in a year and a half The principal, if you can accept that Ethereum will pay back its capital in one year, it can only be doubled to three times in three years. Whether you can accept this profit rate, most people will figure it out by themselves.
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Geek Mining co-founder Michael
Liu Genghua:I think there are two risks. One is systemic risk and the other is market risk.
The risks of the system are like cloud computing power products. You can look at its past performance. Some risks are those that I harvested when the industry was not bad and then ran away. You still have to screen out such risks.
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Liu Genghua, COO of Collin China
Ji An:This year’s bitcoin has a core difference from previous years. This year, bitcoin has broken the circle, and bitcoin mining has also broken the circle. In the past few days, the agent of Warcraft, Ninetowns, will join hands with the former Canaan Yunzhi. Chairman Kong Jianping set up a mining company. As soon as the news came out, Ninetowns’ stock price tripled in three days, which shows how popular this concept is in the capital market.
The second point I want to say is that Moore's Law has brought challenges to the improvement of mining machine performance, and the continuous improvement from 7-8nm to 5nm is close to the limit, which affects the upper limit of mining machine iterations. From a long-term point of view, even if the currency price has fallen by 40%, the income for mining is still good.
The third is the risk of some unreliable teams in the system as Liu Zonggang said. The essence of investment is to invest in people.
For example, Wang Feng, the boss of our Mars Cloud Mine, worked with Lei Jun before. As a founding member of Jinshan, when he went public, he made money that he could not spend in several lifetimes. He is optimistic about this blockchain field, so he came.
Green:
Green:I think what the previous guests said was too idealistic. Whether you can enter the game now depends on whether you can buy a mining machine.
You still can’t enter the game now. In fact, many customers who already have futures mining machines and those who don’t have mining machines want to come to mine. Ask me. I asked some first-level agent manufacturers for them. Friends who are more familiar say that there is no stock. A month ago, you could still order if you wanted to, but now futures are not available for you to order, and manufacturers have no orders. Now you pledge 50% of the deposit to order, and it is still possible that he will return it to you after half a year. He does not know how many mining machines he can produce. In the second half of this year, the pressure on chips will not be so great, and it should be relieved a lot.
In May and June this year, we will pay attention to the latest status of several major manufacturers, and whether they can book machines for the second half of the year. I think this may be a more reasonable time to enter the market.
I still recommend that everyone enter the market with high-performance machines. I do not recommend buying second-hand mining machines. The performance of second-hand mining machines is not so high, so the anti-risk coefficient is low. When the currency price falls or the difficulty of mining increases, it may be forced to shut down.
If you can get a decent machine, you can use some financial tools for hedging, that is, only by hoarding the coins to a high point within a certain period of time can you maximize your income. If you use all your liquidity to buy a mining machine , Waiting to sell coins to pay the electricity bill every month, the income will be greatly discounted.
Hedging can resist the risk of relatively falling, but no financial tool can resist the risk of rising difficulty. Around June this year, the computing power and difficulty of the entire network will definitely increase by a certain amount, because at that time a lot of futures. Everyone should take this into consideration.
Green:
Green:I am still a rational type. We know that in traditional mining, you buy a mining machine for hosting, and then run it stably in the mining pool. From the mining pool to the electricity price to the mining machine, all links are open and transparent. Part of Filecoin mining is software, and part is hardware storage. The current mining machine manufacturers have not been completely open and transparent.
Another problem is that we need to pledge to seal our data. After 540 days, we cannot predict whether the coins you mortgage will rise or fall, so I think it is relatively difficult.
Of course, its imagination space is very large, that is, the participating players can consider whether they can accept these two points.
Yang Yumei:We are indeed an organization that is aware of the risks, and then we will go in and deploy. We have spent a lot of money on the open source mining pool, and it has been very stable until now. Those who participate in this industry either believe in this technology, or I believe that more are pursuing high returns. Now it can be said that it is the first mining stage of Filecoin. Your income is just like entering Bitcoin at that time in 2012 and 2013. There will be more opportunities and higher yields.
The second thing is that with the development of the industry, there are already several companies that he can be very transparent, and he will disclose various news that investors are concerned about in a month or two.
Liu Genghua:When I was a traditional investor, I had some cooperation with China Unicom. Now both the private cloud and the public cloud are developing very well, but two days ago I saw a problem that a lot of storage is not accessible, because the cost of bandwidth is very high. High, the performance of reading data is very low considering the price/performance ratio, and many things cannot be done in application scenarios, so whether storage solutions such as Filecoin can really migrate data to it and use it, and then After calculating whether it is cheaper than the public cloud, it may really have application value.
Ji An:Let me say a different point of view. In fact, the price of currencies has been skyrocketing recently. Only Filecoin, they said to make some pledged coins before the mainnet launch. This is the logic of lock-up. This project is a bit floating, and many things are changing. Yes, as a speculative asset, its rate of return is not bad in the short term. Specifically, whether the money you want to earn is short-term or long-term, you can figure it out yourself.
Daniel：Okay, thank you all the guests for their wonderful sharing, and I hope that friends who listen to this discussion can find their own wealth codes from it.
