Bitcoin wealth creation has become a myth, is it better to make money selling miners or mining money?
More than half of my friends around me, including my readers, play various virtual coins, both domestic and foreign. The most profitable or selling mining equipment, the owner of the mining machine never mines,the owners who sell mining equipment never mine themselves, they only sell equipment.
In China, high-end players bitcoin mining miners directly contract a small hydroelectric power station, which has become a popular practice in the industry over the years.
A number of bitcoin miners have contracted directly for a small hydroelectric power station on the Dadu River or have partnered with a hydroelectric power station to use the cheap electricity.
Bitcoin mining players are described as migratory birds that migrate every year, returning to Sichuan and Yunnan from Inner Mongolia and Xinjiang by May, when the water is plentiful in the south.
When they enter the winter dry season, bitcoin miners then migrate long distances to Xinjiang and Inner Mongolia, where they look for thermal power plants.
Ordos in Inner Mongolia and Kangding on the Dadu River in Sichuan are said to have concentrations of bitcoin miners.
There is a theory that 70% of the world's bitcoin is produced in China, and 70% of China's mining sites are in Sichuan.
It is even rumored in the industry that Sichuan has become the natural "mining capital" of Bitcoin.
Not only does it have very cheap hydropower and electricity, but it also has a low population density and a cold climate, and most of the bitcoin "mines" are built directly inside hydroelectric plants.
According to reports, Sichuan is a major hydropower province in China, but also a major water abandonment province, with the amount of abandoned hydropower exceeding 10 billion kilowatt hours for many years, resulting in a huge waste of resources.
This is the objective reason why bitcoin mining is concentrated in these places.
Because virtual coins are very hot, the electronic trading market in Huaqiang North, Shenzhen, China is also very hot.
On May 19, the cryptocurrency market collapsed. In less than 24 hours, 480,000 people blew their positions, amounting to $5.9 billion (about RMB 38 billion).
Some netizens began to "bottom out" online, "the big shakeup in the coin circle, so that people waiting for the price of graphics cards to drop saw the dawn of hope!"
"Don't even think about it, it's not possible!" Once you hear the rumors of price cuts, Huaqiang North franchise graphics card boss directly extinguished this dawn.
"Now even the goods can not be hoarded, I do not dare to casually open the price, because at any time will increase the price." He said with certainty.
In the past few years, Shenzhen Huaqiang North re-started the virtual currency "wind mouth".
For example, Amazon, self-built station, shopify miners mostly from Shenzhen Huaqiang North market, from the Shenzhen electronics factory.
The computer merchants who have a lot of high-caliber graphics cards in their hands are reusing the resources in their hands to continue the "mining industry".
The original host business business are also renamed to engage in "mining", Huaqiang North has become one of the largest mining machine sales distribution center in the country and the world, can be described as a virtual currency mining machine town.
After the night of the 19th coin circle "frightening night", graphics card sales price stability, and even a small increase.
"The actual fact is that the actual actual actuality of the virtual currency will certainly bounce back. The video card merchants, who are both owners and miners, are calm after seeing the "big storm" in the cryptocurrency world.
Even though bitcoin fell below $37,000, Huaqiang North businessmen are on cloud nine, leaving only one sentence: it's okay.
They then buried themselves in handling the goods on hand, testing and shipping.
"Graphics card price reduction? Don't even think about it."
In Huaqiang North Sage building, there is a higher temperature than this enthusiasm - a whole floor, but all the stores with the word "mining", are testing mining machines.
Display cabinets are not a few graphics cards in stock, but the staff still gathered in twos and threes, the hands of the action did not stop, one staring at the computer screen to check the performance of the mining machine, the other debugging the mining machine next to.
from amazon
RTX3080 graphics card in Huaqiang North market price rose to $ 2486, the price increase of nearly 300%
These merchants are close to the cryptocurrency circle, but the big crash on May 19 seems to have nothing to do with them.
In the Huaqiang North market, as long as the equipment related to virtual currency - graphics cards, mining machines, business is still booming, and prices have even increased slightly.
Mining has to squeeze out the highest amount of computing power with the least amount of time and limited hardware as a way to get high returns. Mining requires a lot of computing, which happens to be the strong point of graphics cards. Miners will use six to eight graphics cards to assemble a mining machine to increase the arithmetic power of the device.
As a result, a large number of graphics cards are flowing into the mining market, triggering a global shortage of graphics cards.
fromamazon
The Nvidia RTX3080, known as the "graphics card Hermes," is currently in the entire building, only three merchants can get the spot, and the spot price has risen from $2,331 at the beginning of the month to $2,486.
According to the official recommendation, the RTX3080 retail price is $855. That makes the price of the model's graphics card jump nearly 300%.
"Price reduction? That's impossible, don't even think about it." Most owners gave the same statement, "I'm getting more than that now."
Even after the overnight plunge in the coin ring.
The owner of the graphics card stock in hand bluntly said "price reduction is impossible", the owner of the stock is not afraid to open the price, "the goods simply do not want you can have." Some bosses lamented that the price will rise at any time, the price quoted and then sold, who can not say whether it is a profit or a loss, do not know whether to cry or to laugh.
Different models of graphics cards have basically doubled in price, even if they are not mainstream hot models.
"In fact, the price of graphics cards has been very stable." Huaqiang North graphics card store Li Wei told the Times that there was no shortage of times when bitcoin fell in the past year, but graphics card prices have not changed much. Take the over-the-top graphics card model Nvidia RTX2060 for example, the general sales price is at $311. When the cryptocurrency price is good, this model can even sell for around $930, and at the lowest, it can sell for around $622.
Whether the virtual currency market is good or bad, as long as there are still people who mine, the demand for graphics cards will not disappear.
"Like bitcoin, when the price goes up, it will drive other virtual currencies such as ethereum and dog coins up together.
This time, regardless of whether the graphics card is high or low arithmetic power, will be hot, a card hard to find will reappear."
"The ups and downs of virtual currencies will affect the earnings of the miners, but will not make them flee mining immediately."
Non-professional miners are using graphics cards to mine, and the cost is mainly for graphics cards and electricity.
The revenue after mining coins is actually not quite considered profitable after these costs are deducted.
Take the virtual currency Ether, which is ranked second to Bitcoin in terms of popularity, for example, with a computer with a graphics card, you can mine 0.001 per day, and you have to dig up to 0.05 before you can raise it.
At the current price of $2,486 per Ether, it will take a year to dig and earn $777 after deducting costs. "So, mining people will not get rich overnight like coin speculators."
Mining people will not leave mining as virtual currency prices plummet, the demand for graphics cards and mining machines is continuous.
As long as there are people who mine, the demand for graphics cards and miners is continuous.
"Mining is not the same as speculating in coins." The graphics card owner said that speculation is to take cash for coins and get anxious once the price plunges.
But mining is to rely on the accumulation of time, "we mining people are in the hands of the coin, the heart is not panic, the initiative to sit and wait for the high level of cash, and speculation is not the same."
In Huaqiang North, operating graphics card mining machine stall bosses mostly multi-tasking, both selling mining equipment, but also mining. People who are very close to the cryptocurrency circle, closer to the market, look at the virtual currency market seems to be more convincing.
"(Virtual currency) will definitely go back up." Now the graphics card can't even stock up, much less lower the price, so the virtual currency will definitely bounce back.
Even after the "mining disaster" in 2018, even if the cryptocurrency circle overnight diarrhea, Huaqiangbei still believes in virtual currency. In other words, Huaqiangbei does not believe that virtual currency is falling again.
"Not earn a million, are afraid to open"
The first street is known as "China's electronics" Huaqiang North, is the country's and even the world's largest mining machine sales distribution center.
There are data that Huaqiangbei is the distribution center for about 90% of the world's mining machines, producing all kinds of mining machines and sending them to the world, creating a high value.
Since 2021, the virtual currency market is booming. Huaqiang North mining machine business frenzy state continues again, even laptops are sold out and are used for mining.
But Huaqiang North bosses know that it is necessary to have faith in addition to a good eye to bet on the right treasure.
"As long as the right model is hoarded, doubling the price is not a problem." In Huaqiang North operating IC (integrated circuit) products, said the boss.
In recent years, due to the increasing number of mining, to mine the coins will require more computing power. There are technicians developing ICs dedicated to mining for mining tools. But affected by last year's epidemic, IC products experienced a round of spikes due to lack of capacity. "More than a hundred dollars of goods, less than two months time, doubling thousands are not a problem." "A year down, the house down payment is not spelled out well."
A number of electronic components boss said, last year Huaqiang North IC circle per capita profit from a million, the trend of price increases continue to this day. "This year did not earn a hundred (million), in Huaqiang North are afraid to open."
Buy a house is not the ultimate goal of these stall owners to make money, buy a small warehouse is.
"Buy a small warehouse, hoard the right goods." There are operating electronic components boss said, after the industry to earn money, more is thinking about the next price increase in the product, after all, hoard the right goods to earn more money.
Small warehouses have become the immediate needs of each boss products. The boss's idea of making money is: make more money = hoard more goods = buy more small warehouses. "You see how simple we think, is to sell goods - hoard goods - sell goods, just earn money week after week." The boss said.
This time, the cryptocurrency circle shook a shake, Huaqiang North stall boss always calm.
They hope that the virtual currency market can keep booming and keep doing this good business, instead of chasing the wind and moving with the wind.