Analysis of the income of bitcoin miners

What determines the benefits of mining

If we want to do good things first, we must first make use of the tools. To get the bitcoin income through mining, we need to understand what determines the mining income._DJMINER

1. Calculation difficulty

What is the difficulty of computing power? This starts with bitcoin system. Blockchain is the underlying technology of bitcoin. In short, blockchain is an open account book. Bitcoin is obtained by competing for the right of account keeping.

Scramble for the right to keep accounts is also to solve a super difficult and super complex mathematical problem in the whole network, that is, hash operation. Through hash value collision, in 10 minutes, calculate the correct answer, even if scramble for the right to keep accounts, get bitcoin.

Since Nakamoto dug out the first 50 bitcoins, bitcoin production has halved every four years, from 50 to 25, to 12.5 now.

With the halving of bitcoin production and the rising of currency price, there are more and more mining machines participating in the fight for bookkeeping rights, which leads to the rising of computing power and the increasing difficulty in fighting for bookkeeping rights.

The difficulty of competing for bookkeeping right determines the difficulty of calculating power. The amount of calculation investment directly determines the income of the miners.

The less difficult the whole network computing power is, the easier it is to compete for the accounting right, and the smaller the corresponding input of manpower and electricity. For the miners, of course, they want to use the least input to get the highest income.

So, of course, we should be concerned about the difficulty of computing power._DJMINER

2, currency price

The second thing that affects the miners' earnings is the price of the currency. Of course, the miners are most concerned about how much bitcoin they can get back.

Judging from the trend of big currency price, Laszlo hanyecz, an American programmer, bought pizza worth 25 dollars with 10000 bitcoin since the advent of bitcoin in 2008. At this time, the value of a single bitcoin is only $0.0025. In 2017, the maximum value of bitcoin reached about $20000. In 2019, although there was a partial decline in the range of $10000, the value of bitcoin is obvious to all, and the sustainable holding value is very high.

Because of the decentralized characteristics of bitcoin, the realization of point-to-point transaction is independent of the influence of region and exchange rate. The daily average transaction volume of bitcoin in the whole network is up to more than 10 billion, with high circulation value and convenient transaction.

With the rise of blockchain technology, a variety of digital currencies are springing up. There are many worthless air coins. It has no circulation, value and consensus.

As the digital gold in the digital currency, bitcoin has its unique value. Driven by the consensus mechanism, the liquidity and value of bitcoin will only become stronger with the continuous development of blockchain technology._DJMINER

1, electricity price

The third one is the price of electricity, which directly affects the income of mining.

The higher the computing power of the miner, the smaller the power consumption, and the less the cost of digging to bitcoin. It has a direct impact on the earnings of miners.

The power plant is divided into thermal power plant and hydropower plant. In the thermal power plant, there is stable power throughout the year, but the electricity price is slightly higher. The electricity price of hydropower plant is very low in the wet season and dry season, but in the dry season, it will face the situation of overall power failure, no electricity available, and the stoppage of the miner.

The stoppage of the miner means that the miner has no profit. The mining union is facing lower earnings when the currency is too high.

Knowing the three factors that affect the income, the mining assistant will explore with you how to return to the current cycle in the next time._DJMINER

How to calculate the mining cycle

Knowing the three factors that affect the revenue, let's calculate the mining cost together.

The mining cost includes the purchase price of the miner, the cost of electricity and the custody fee of the mine. What determines our earnings is the rise and fall of the currency price.

Well, we all know the cost of mining. Let's go back to this cycle together with the mining assistant.

Return to current period = unit price of one miner ÷ net income (one day income one day electricity fee one day management fee)

Of course, this is a theoretical static cycle. The majority of miners' partners should always pay attention to bitcoin price, which is an important part of the income, and should not ignore the calculation difficulty and price fluctuation at that time. For our own pocket, it is right to pay attention to these points.

When we know how to calculate the return period and what influences the return period, we should firmly control our losses and see the steady income.

What should we do to make more money

Knowing that all these factors are affecting our earnings, we should certainly check and purchase high-quality mining machines, find the right power supply or mine.

A good mine has efficient operation and maintenance, stable power and high-quality mining machines. All of them add up to make a good profit.

For the miners with more mining machines, they can find their own power, establish their own mines, find their own operation and maintenance, so that their own profits can be maximized.

For the miners who don't have more mining machines, they can find a reliable mine and keep warm with everyone. Naturally, they can also better protect their own income._DJMINER