Why mining is becoming increasingly difficult (why mining loses money)
Why mining is becoming more difficult Why mining is becoming more difficult? Because mining is a distributed accounting industry, and mining is a decentralized economic activity Blockchain is a technology project that can put various things together to create value, and it is used to solve complex business problems in the Bitcoin network. But now Bitcoin mining is no longer a simple and crude task, but requires some changes and upgrades to achieve truly decentralized and borderless transactions So from the current development trend, although many people believe that mining will bring many challenges or difficulties, there are also many uncertain reasons – for example, the design threshold and cost of ASIC chips are high; In addition, due to the high volatility of Cryptocurrency and other reasons, the price is too low, so people began to look for a new way out. These factors have made mining machine manufacturers and mines more concentrated, leading to chaos and even death in the entire industry So what prompted us to have such a great interest in mining? The main impact is actually the continuous rise in the price of Bitcoin. According to Coinmarketcap statistics, the current global Spot market of Bitcoin is about 29000 dollars. And the difficulty of Bitcoin mining is at a historical high of 48000T (equivalent to 60000 transactions per second). If the computing power of the current Ant S19Pro series products is used, the total computing power of nearly 3000 Bitcoins in the entire network can be increased to over 5000P. This means that Bitcoin may have nearly 20 times the annual revenue, much more than the average annual rate in 2017 Of course, some people also express the view that “as the currency price continues to rise”: “For investors, buying a new machine is as easy as buying an ordinary gold.” However, this is only a niche phenomenon of Bitcoin, because Bitcoin has no practical use, and the emerging concept of “mining” is not a technological application, nor is it an application of financial technology In fact, in the past few years, both institutions and individuals have been exploring how to leverage their advantages to acquire higher-level digital assets and use a wider range of network resources to develop their own digital currency. However, in addition to traditional payment tools, there are many other investment products that cannot meet people’s needs, and they have to give up all their existing assets, such as stocks, bonds, or foreign exchange. When you want to purchase a pile of goods, you must first consider your financial situation. Once you decide whether to hold Bitcoin or not, you can no longer purchase a virtual item with legal currency like before
Why Mining Can Lose Money
Editor’s Note: This article is from William Chatter (ID: William1913), written by William Chen, and reprinted by the Daily Planet with authorization Bitcoin mining is a very unusual task that requires a large amount of electricity and energy to run this system. Do you use your money to buy things? “Many people think,” Why should I sell my mining machine? “And” if I don’t make money, “is it in the sense of losing money
So if you are making more money in Cryptocurrency mining than your income, there is no reason for you to make such investment again – it is a gamble, because you cannot put all the gold on it. Why have you been losing money for so many years? There are actually two reasons: first, it’s because you don’t know if you’ve already started owning your own digital assets. The second one is because you can’t know how to purchase these tokens and then passively hold them. The third factor is also because you think they can receive compensation from a country? That is to say, if you really want to get a return and maintain its value, then you will feel that the loss is very huge. The fourth reason is that you have not invested resources in various ways to explore and can withstand such high costs and pressures as before Therefore, we must remember one thing: do not let a person spend millions of dollars every day researching, analyzing, and evaluating the profits that may bring to your miners, which is inevitable. The fifth reason is the question we should consider: when we buy and sell mining pools in the market, is there anyone willing to pay interest for profits instead of charging fees in other ways? Let’s take a look at what “profit” is. The principle of mining is calculated in this way, but what is the essence of mining in reality? When people hope to mine a transaction on the blockchain network, some people are unwilling to put in a lot of effort to obtain more profits or participate in this activity, leading to price increases. However, this situation also brings huge problems – how can you ensure that profit margins continue to grow? What if one day you continue to mine with someone else’s hard drive For example:
If you have a phone or computer, you can play some games on it, and as long as it is installed, you can use it.
. Of course, if the device is still old, you can choose to upgrade it directly to reduce the difficulty. In other words, if you are in ASIC Mining Company, you will see many machine updates from Bitmain. However, for most ordinary investors, there are only two methods: 1. Focus only on software; 2. Follow the market to adjust the algorithm. The last method is to find the best bid with the highest computational power. For example, the current price of Bitcoin is $27000, which has increased by over 300% in the past year.
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