Guide to avoid mining pits: Things to do when looking for electricity | rtp slot 99, casino288 slot, slottube99

"The annualized rate is conservatively 30%."

Wang Weinan, a hardcore miner who entered the pit in 2011, roughly estimated the current industry average income level of Bitcoin mining. "Those old leeks who are always complaining that mining is about to die, if you let them try to quit naked, no one will really quit, but they are not as awesome as last year and the year before."

Bitcoin mining has experienced an annual increase of 400%. Even in the midst of a bear market, the rate of return far exceeds that of traditional industries that are declining day by day. On the contrary, many traditional giants have taken advantage of the low prices and placed large orders on the sidelines to receive goods. According to this logic, now is also a good time to buy at the bottom of the mining industry.

On the eve of the Spring Festival, news about mining machines being sold as scrap iron became popular and reached the ears of many traditional bosses.

The aunt told reporters that she used to do traditional investments such as fruit and vegetable retail. After reading the news that mining machines were particularly cheap recently, she really wanted to take advantage of the low price. Although she knew nothing about cryptocurrency, she and several friends came to Beijing from Chongqing overnight, staying only for a day or two, meeting people and learning non-stop.

Although we don’t know what happened to this aunt later, we can be sure that her road to the industry will not be smooth. Because there are so many pitfalls in digital currency mining, every senior miner has to step on them.

1. Why mining is always cut off: non-standard industry, information asymmetry

“The mining industry is simply an investment channel for mining machine dealers and mine hosting companies. However, there are some fake mining companies, or a small number of bad guys in the mining industry. If they don’t want to do it, they often deceive new and old leeks in the industry. Old leeks have also stepped on many pitfalls, such as To defraud us of second-hand mining machines, or to defraud us of money to buy mining machines, there are not many people in this industry who sign formal contracts, especially in small batches, and many people trade directly without ever meeting them," Wang Weinan said. Even experienced leeks will be defrauded of money, let alone newcomers.

"Newcomers have no resources or information advantages. Unless they persist in the investigation for more than a few months, and then have strong funds, they can still enter the market. Otherwise, they will be cut off, either from the mine or the mining machine manufacturer; if they join an unreliable mining pool, they may be cut off again." Wang Weinan warned newcomers that they must find a reliable old team, whether it is a mining machine dealer, a mine, or a mining pool.

The reason why the mining industry is full of deep pits, Captain Yu, COO of the Mining Association, believes that the main reason is that the industry is very "non-standard", there is no unified standard, and the information is very opaque. Although there are not many practitioners, there is no unified platform for information exchange between them, so it is easy not to cheat when you are just getting started. He and A Niu, the founder of the Mining Association, also hoped that miners could unite and communicate with each other and provide early warning, so they established the "Mining Association" community. At the same time, they also hope to reduce the mining costs of miners.

Wang Xiaoyi was originally engaged in the Internet industry, and entered digital currency mining in 2017. He owned mining machines from 10 to several thousand, and later sold many of them. He is still the owner of the mine, mainly using the container mine model for mining.

The reporter chatted with Wang Xiaoyi and Captain Yu to see what pitfalls and necessary resources there are in the mining industry.

“If you can hold cheap power resources, it will be your strongest backing to survive the bear market.” Power is still one of the most important resources, and it is also full of landmines“Deep water area".

So what are the pitfalls in finding electricity?

1. Electricity prices vary greatly and are not transparent

Wang Xiaoyi said that the power stations sold by private institutions to the State Grid are priced in various places. According to the type of power generation (thermal power, hydropower, wind power, etc.) and local conditions such as power supply and demand, each province and city has different electricity prices and purchased electricity. Generally speaking, the amount and price of grid-connected electricity (purchased electricity) are related to the local industrial structure and economic development, and State Grid will not purchase it without restrictions. This means that each power station may have surplus electricity for sale externally. “I once learned that in underdeveloped areas like Ganzi, Sichuan, there is no price limit beyond the plan. "Electricity prices are basically sold according to market conditions and float within a specified space, so the price of electricity you can get is "very deep".

Wang Xiaoyi introduced three modes of "finding electricity" for mine owners: "Many people are locals, build mines, and then accept trusteeship; or they drive to Sichuan and other places to inspect by themselves; or they obtain information through power plant intermediaries. ”

“But I haven’t relied on an agency anyway. "Wang Xiaoyi said that he directly connects power resources himself. During the conversation, he was unwilling to disclose the specific name of the company, but he said that it is a relatively large hydropower chain enterprise in China, and some local thermal power plants.

As mentioned above, mining information is not transparent, intermediaries are everywhere, and it is difficult to distinguish the authenticity of information from intermediaries.

It’s hard for a newbie to know what kind of computer is cheap? Lower than average price is probably the public perception, but if it is to be used to mine digital currency, it involves risk issues. The income from digital currency mining mainly comes from selling coins, and currency prices fluctuate greatly. Without very low costs, you may not be able to withstand a drop in currency prices.

“At the same time, many people in the market were getting 3.5-3.7 cents for electricity, but we gave up a lot. "Captain Yu entered the industry in 2016. He believes that in principle, bare electricity with a price of less than 3 cents is safe. "At that time, A Niu and I discussed whether to accept electricity with a price of 3 cents. After A Niu's evaluation, this was already a high-risk electricity price. ”

In today's market where currency prices have fallen even more miserably, calculating how much money is "safe" is another set of algorithms. Correctly assessing whether electricity prices are reliable and safe is also one of the essential skills for mine owners.

2. The infrastructure construction period is too long and the power is unstable

Wang Xiaoyi told reporters that he previously signed a contract with the power station in January 2018 and only received power in March. During this period, the currency price has been falling, and the best opportunity to mine coins has been missed. “(Actually) you are anxious when currency prices go down, and you are also anxious when currency prices go up. ”

As a result, the notebook "container mine" in the mining industry appeared. Wang Xiaoyi said that the advantages of container mines are that they can be deployed quickly and are flexible in location changes. If the power supply is unstable, the location can be changed immediately.

The distribution of cheap electricity in container/mobile box mines varies across time and space. In terms of space, thermal power is mainly located in Inner Mongolia and Xinjiang; hydropower is mainly located in Yunnan, Guizhou and Sichuan. The advantage of hydropower is that it generates a lot of electricity during the wet season, the electricity price is cheap, and the ratio of the power generation to the dry season can reach 5:1 or even 7:1. Therefore, some miners even mine during the wet season and move or shut down during the dry season. Some miners will"Follow the electricity" and the mine infrastructure is worrying again. The mobile mining farm is intended to meet the requirements of these miners: to improve the convenience of mining and to shorten the cost of mining farm construction.

There are many factors that cause power instability. For example, his "neighbor" once mined a pit because of the power supply. The so-called neighbors come from the fact that sometimes several mines will be built next to a thermal power station and share the same power plant.

The power supply of mining machines is the same as that of mobile phones. There are original ones and third-party ones. The official power supply is configured according to the mining machine, but not necessarily the third party. "Some brands of power supplies will produce harmonics, which will affect the power supply. One unit may be fine, but tens of thousands of units may have problems, causing instability in the power supply."

3. Electricity compliance

When you encounter cheap electricity, you must know whether it complies with regulations.

Once local government departments discover illegal use of electricity, they can seal it at any time.

In the past few years, currency prices have recovered, and mines of all sizes have appeared in Ma'anshan, Sichuan and other places. Some mines bypass the national grid and directly negotiate with power stations to use electricity at low prices; others directly steal electricity illegally. "Places such as Ma'anshan and Tangshan are key places for electricity theft, but the government has vigorously cleaned up." Captain Yu said.

“After the power reform, the electricity demand side can sign agreements with power generation companies.” Captain Yu said that point-to-point power transmission also needs to go through the State Grid, which will charge a network fee of 10.1-10.5 cents, otherwise it is illegal use of electricity.

"Stealing electricity is a red line and must not be touched. This may violate the criminal law. You are here to do business. There is no need to do such a thing. You can make money if you do it well." Captain Yu comes from the traditional energy-saving industry and is very repulsive to stealing electricity. "Stealing electricity is not long-lasting and cannot be scaled up. The principle of stealing electricity is to use the loss of the line, and the scale can only be about 100 units."

In short, compliance must be paid attention to in all aspects such as power resources, environment, and factory construction.

4. Electricity prices follow currency prices: contracts have no effect

"I originally had two customers, one for 50 cents for electricity and the other for 40 cents for electricity. Later, the price was lowered to less than 40 cents." When the currency price continued to decline, Wang Xiaoyi, as a mine owner, could only reduce the price for his customers. The price of electricity has fallen below the cost of electricity, and price reduction has become the only means to retain customers. "Otherwise he has no choice but to leave. If I let him live, I can live too."

"In this industry, contracts are ineffective." Wang Xiaoyi concluded this conclusion, "Of course it still works when disputes arise."

If the currency price falls, mining farm owners have to cut prices to customers. If the currency price rises, they may also encounter power price hikes.

"After the mine owner built a mine there, he (the hydropower station) saw that the income from the mine was relatively high, and he felt that he could do this too." At this time, the power plant felt that it should share more. But Captain Yu thinks, "This is actually quite professional. One is the operation and maintenance aspect, and the other is the ability to control the overall market (digital currency market) is relatively weak, so he will fall into a passive state. If the operation and maintenance is not done well, the mining machines will often malfunction, and the computing power will not be increased, resulting in huge customer losses; at the same time, it is also difficult to attract investment."

“The most hateful thing among them is scalpers. In 2017, we watched helplessly as electricity prices started from 278 cents at the beginning of the year, rose to 30 cents at the end of the year, continued to rise to 35 cents, and then to 40 cents.”

2. How to get 100% annual return: the cost structure of the mine

Many people who are not familiar with the electricity market think that the bare electricity provided by the power plant can be used directly. In fact, a lot of infrastructure still needs to be done. "The high-voltage electricity output from the power plant passes through our transformers and enters the mine."

“The electricity the power plant gives you is bare electricity, and the power contract you sign is also the supply price of bare electricity. The prices of hydropower, thermal power, and power stations in different places will differ across the country. Under normal circumstances, it is about 3 cents/kWh. After the infrastructure is completed, the cost of each machine position is about 500-700 yuan, so the mine mainly depends on the market conditions. Establish a reasonable managed electricity price. If bare power costs and infrastructure costs are not controlled well, it is very likely to lose competitiveness in the market. This is a high-risk, high-yield, asset-heavy industry." Wang Xiaoyi recalled that the managed electricity price ranged from 4.5 cents to 5.5 cents in 2018, and was between 3.5 cents and 5.5 cents in 2018.

The infrastructure construction costs of the mine involve transformers, power distribution fees for strong and weak currents, cooling costs, etc. It is difficult to explain in a few words.

"Infrastructure costs are mainly civil construction, switch cabinets, transformers and other low-voltage electrical equipment, followed by racks, water curtains, fans, and finally networks and routing." Captain Yu said that each company has different construction standards and construction plans for the cost structure, because there is no unified standard. "The School of Mines and Oceans also hopes to be committed to standard output. After the standards are unified, everyone can reduce a lot of costs."

He further said: "The construction costs are different. For example, the construction cost in Xinjiang is higher, while the cost of mining in Sichuan during the flood season is relatively low. This cannot be compared horizontally. It can only be said that in the future, the standards of the mines will become more and more unified, and the cost will be optimized. The overall cost will gradually become higher. Because you are not going for the short term, the goal of the flood season is to recover the cost in six months. In the future, we will consider the problem in years."

"If you can earn 10 cents from 1 kilowatt hour of electricity, assuming there are 10,000 kilowatts (about 650 machines), you can earn about 1,000 an hour, 24,000 a day, 700,000 a month, and you can get your money back in more than 5 months (this involves infrastructure costs, assuming The cost of each machine position is 600 yuan, 650*600/2.4=162.5 days). "Unfortunately, these are just hypothetical perfect situations. In fact, he believes that the mine can only earn 5 points per kilowatt hour of electricity, and the cost of operation and maintenance personnel has not been deducted. All in all, everything is related to the currency price trend.

3. Who is suitable for entering the trap: those with resources and risk tolerance

Today, currency prices are sluggish and mining volume is shrinking. New leeks are daunting, but for investors with strong capital, it is a good time to get involved.

"What kind of people do you think are suitable for mining?" the reporter asked Wang Xiaoyi.

“There are power resources, real industry bosses, pure financial investors, and institutional investors.” He said, “If you have money, you want to make money, but you must believe in the blockchain.”

We must pay attention to the prerequisites, which are sufficient funds and the ability to resist risks. Mining andIt is not a business that is guaranteed to make a profit, and risk awareness must be emphasized repeatedly.

"I contacted a mining farm owner. After the bull-bear transition in 2013, he was not too greedy. When the price reached its highest in 2017, he sold out 80% of the mining machines."

"Government resources are also needed. Regular mines must establish projects." Like most mine owners, Wang Xiaoyi also recognized that only safe and compliant electricity can be stable. "It will be more convenient if you have knowledge, connections and capital."

(Source: Planet Daily)