How Hard is Bitcoin to Mine?

BitCoin mining consumes 180 billion kilowatt-hours of electricity a year, causing a serious shortage of chips.

As a unique digital currency, the emergence of Bitcoin can be said to make all investors around the world into a carnival. If anyone has a few Bitcoins, it is undoubtedly the "most beautiful boy" in the audience. However, as a currency that is not in real circulation, Bitcoin can only exist as a virtual currency, and the core is decentralization.

Since Bitcoin officially entered the digital currency trading stage in 2009, no one knows who the inventor "Satoshi Nakamoto" is? It doesn't matter whether it is a person or a title, because Bitcoin's unique hype has attracted people from all over the world, and the price has soared from one cent at the beginning to tens of thousands of dollars.

No doubt that Bitcoin's status today has something to do with everyone here. This is caused by the extreme greed of mankind for wealth. Some people say that Bitcoin exists in line with trends, and some people think that Bitcoin is completely an unrealistic digital currency that will eventually form a huge bubble one day.

However, with the soaring of Bitcoin price, it is very difficult to dig one Bitcoin now. Some people are desperately digging one or two all year round, but because of excessive Bitcoin mining, global power consumption is tight.

Mining Bitcoin Extremely Consumes Power

According to incomplete statistics, computer mining of Bitcoin consumes more than 180 billion kilowatt-hours of electricity a year. What does this imply? It is equivalent to the annual electricity consumption of 300 million people in the world, and the electricity consumption is not proportional to the bitcoins mined. It is important to know that in order to mine Bitcoin in Seoul, South Korea, the entire surrounding industrial park was cut off, the progress of industrial production slowed down, and the power consumption was huge.

Due to the algorithms set by Bitcoin, if there are more people participating, the less Bitcoin will be dug. For example: there is 1 ton of sand on the ground, and if one is moved, you can get 100 yuan, but 100 people If you move, you can only get 1 yuan per person, which is also a cost and effort.

In order to mine Bitcoin, countries around the world move so-called "mining farms" to sparsely populated places or countries with cheaper electricity bills. Otherwise, the cost is too high. The second thing is that while the electricity consumption is large, the carbon dioxide emissions are also extremely high, which is also a high-consumption product for society.

Mining Bitcoin Consumes Hardwares

Moreover, mining Bitcoin requires a large number of chips to perform operations. Only from November 2020, the global supply of chips is very tight, from car chips, mobile phone chips, computer graphics chips, etc., so that many car companies have to The reduction in automobile production resulted in stagnation of automobile production and employees were resigned.

And many consumers who mine Bitcoin are hoarding chips in their hands. The graphics card that originally only cost about 5,000 yuan has now been hyped to more than 15,000 yuan, which has tripled. This has also led to the distrust of Bitcoin in most countries. The attitude does not allow trading in the country.

Of course, coupled with Bitcoin's unique decentralization technology, Bitcoin has become a target of "money laundering", crime, and the dark web. Therefore, we must calmly think about Bitcoin instead of chasing it madly.

Ebang Completes 6nm Bitcoin Mining Chip Design

 Ebon International (EBON.US) announced that the company has completed a 6nm ASIC chip specifically designed for Bitcoin mining machines, and it is expected that the chip will have a competitive advantage in the market in terms of performance. The company plans to begin mass production of its new chips when it determines that market conditions are appropriate.

Skyrocketing Bitcoin price exacerbates chips shortage

Following the end of February, today Bitcoin once again reached a high of $57,000. According to the encrypted digital currency market website Bit Fan, at 3 o'clock in the morning on March 11, the price of Bitcoin rushed to over 57,000 U.S. dollars, reaching a maximum of 57,277 U.S. dollars, setting a new high in the past two weeks. However, the price of Bitcoin continued to decline subsequently. As of press time, the latest price of Bitcoin is $55,908.51, a 24-hour increase of 2.15%, and the market value has returned to $1 trillion.

However, in the eyes of some financial economists, Bitcoin's skyrocketing is not something to celebrate. On March 11, financial economist Alex de Vries quantified in the journal Joule ("Joule"), a journal of Cell Press, how the soaring price of Bitcoin has exacerbated energy consumption and global chip shortages, and even threatened international security. 

Bitcoin has fallen by 20% from its high of $58,000

 Bitcoin prices have fallen in the past few days, retreating from recent historical highs, and have fallen by nearly 25% within 48 hours.

According to relevant data, this morning, the world's most outstanding digital currency fell to $44,964.49.

After falling to a recent low, Bitcoin rebounded and returned to $50,000, and has since been trading between that price level and $46,000.

An article on Bitcoin's latest downtrend called it a "crash."

However, some market analysts took a different view, saying that Bitcoin's latest retracement is completely natural.

Jason Lau, chief operating officer of cryptocurrency exchange OKCoin, said: "From a weekly perspective, this is the first time Bitcoin has appeared in red in a month."

Bitcoin market value reaches 1 trillion U.S. dollars

Bitcoin market value reaches 1 trillion U.S. dollars, chip maker Nvidia announces that it will produce mining machines.

 Inflation worries, institutional support, big-name stances...Multiple factors have made cryptocurrencies more and more popular.

Today, Bitcoin price is sent to US$53,000 on multiple exchanges, bringing the market value of the entire Bitcoin market to nearly US$1 trillion.

At the same time, news of the "mining" market has continued, and well-known companies and market players have rolled up their sleeves and announced their end. On February 18th, GPU manufacturer Nvidia announced that it has launched a processor CMP dedicated to mining ether, which is expected to meet the expected ROI (return on investment) of "miners". On February 19, Macau casino tycoon Zhou Zhuohua also entered the market publicly, and Sun International, a Hong Kong-listed company, is planning to purchase 1,000 cryptocurrency mining machines.

Bitcoin market value is close to $1 trillion

As of 7:30 pm on February 19th, Beijing time, according to the statistics of Bloomberg Terminal, the market cap of Bitcoin has reached 980 billion U.S. dollars. This news further stimulated the market volume, and the frenzied trading pushed up the price of Bitcoin. On Bitflyer, Bitstamp, ItBit, B2C2, Coinbase, Bitfinex, Kraken, EXMO and other exchanges, the price of Bitcoin is heading toward $53,000.

This skyrocketing market value means that Bitcoin, a financial product that was originally regarded as an "alternative investment", is better than most listed companies due to the innumerable number of corporate financial officers, fund helms, and risk-preferred investors. Both are more "attractive." According to statistics, there are only five listed companies with a market value of more than US$1 trillion, including Apple, Saudi Aramco, Microsoft, Amazon, and Google. The market value of Bitcoin is larger than that of Tencent and Facebook. The market value of the two is now 7.11 trillion Hong Kong dollars and 767.1 billion US dollars.

The joy and sorrow of Bitcoin miners: mining machine prices soars with currency prices, worry about the plunge

 In the winter of 2017, the night in Inner Mongolia was very cold, and the outdoor temperature was below minus 20 degrees Celsius.

In a desolate "mine", Feng Sheng, a Bitcoin miner from Hangzhou, Zhejiang Province, went to bed early in a large room with a "bunk bed, sleeping seven or eight people" because there was no entertainment.

"That site is very off the beaten track. It's a half-day drive from the nearest small county town, just like the Gobi Desert. There is nothing but the site and a road." He told The Paper reporter that it was an endless wasteland.

The "mine" Feng Sheng went to was on a wasteland in Inner Mongolia. The picture is provided by the interviewee

What drove this southern guy to this cold and frozen wasteland was a hot Bitcoin market. In 2017, the price of Bitcoin rose from USD 1,000 at the beginning of the year to USD 13,000 at the end of the year, an increase of more than 10 times.

Feng Sheng is just one of many "gold diggers". Behind him is a large group of people who are eager to Bitcoin, who regard Bitcoin as "digital gold".

Starting in the second half of 2020, Bitcoin miners seem to smell the "crazy" smell of three years ago. After the price of Bitcoin broke through $10,000, it went up all the way and once broke the $40,000 mark.

Feng Sheng just graduated from university in 2017, and now he has more than 3 years of "mining" experience, during which time the Bitcoin price plummeted from nearly $20,000 in December 2017 to $3,000 in December 2008 about.

Bitcoin price trend since 2017

After experiencing the "big storms" and facing the current wave of Bitcoin's rising market, Feng Sheng told The Paper, "Mining is a long-term job. Update the mining machine, plan the site, electricity price, and electricity bill in advance. The subsequent currency price changes have little effect."

Mining is actually an activity with potential policy risks. In September 2017, the People's Bank of China and other seven departments jointly issued the "Announcement on Preventing Token Issuance Financing Risks", halting various token issuance financing activities. Domestic cryptocurrency exchanges were gradually closed, and virtual currency mining was once required to withdraw in an orderly manner. Due to its high power consumption characteristics, virtual currency mining was once included in the list of "eliminated industries" by the "Industrial Structure Adjustment Guidance Catalog (2019 version, draft for comments)" issued by the National Development and Reform Commission, but in the official draft "Escaped".

Crazy Bitcoin Put Mining Chips in Hot Sales and Potential Risks

Since the beginning of 2021, Bitcoin continues to gain momentum. On January 6, the price of a Bitcoin exceeded 35,000 U.S. dollars. It took only half a month from breaking the 20,000 U.S. dollar mark to 30,000 U.S. dollars. Under the explosion of mining demand, the production capacity of mining machines has also encountered challenges. At the same time, the production capacity of upstream chip foundries has begun to come under pressure, especially the demand for 5G and consumer electronics has also grown simultaneously.

Looking back at the past 2020, Bitcoin's growth rate is close to 350%. Driven by the hot market, the mining income of miners has risen accordingly, which in turn promotes a surge in demand for mining machines. Major mining companies have purchased more high-power mining machines. Mining companies hope to take advantage of the current high currency prices and the increasing difficulty of mining to obtain more stable mining revenue by increasing computing power.

What are Filecoin and Bitcoin

 A manufacturer of ipfs FireRaytheon believes that the most famous NFT trading market uses IPFS and Filecoin to support its network...

 In fact, Bitcoin was not popular at first. Many people think this is a bubble. However, after more than a decade of downturn, Bitcoin has become a leading digital currency. Many people began to regret not mining Bitcoin. Then, document currency will be introduced. It is called the second type of Bitcoin. As a symbol of the IPFS storage system, it is even more practical than Bitcoin.

The development trends of Bitcoin and fil are still very different. However, due to the relatively high feasibility of the IPFS project, the future development trend cannot be underestimated, and its prospects can also be realized.

Bitcoin was born more than ten years ago. At this time, the exchange rate has exceeded 10,000 times. At present, the document currency exchange rate is still difficult to exceed Bitcoin. However, the IPF project has only six years of history and was launched only a few months ago. In terms of time value, there is still a lot of room for growth and huge opportunities.

The Internet is rapidly developing into Web3.0. The iterative technology of IPFS distributed memory is the foreplay of Web3.0. How can fil currency (a virtual currency based on IPFS) compete with Bitcoin in the future?

In addition, with the release of the new economic model, almost all mining companies invested in the first half of this year. This book is highly profitable, but it is either hypothetical or closed. In short, it cannot be removed. In the early stage of the filecoin network, the proportion of computing power added to the terminal capacity every day was too high, requiring a lot of funds to enter the system, and then to enter the path system, following the traditional model, especially in the early stage, when the market supply and demand are out of balance, it is particularly easy to cause prices And changes in value, leading to currency shortages and currency prices.

Large investment institutions in the world

As we all know, the goal of these institutions is to make a profit. There is no doubt that a group of institutions represented by Sequoia Capital have been strongly confirmed by filecoin. This is a goal with the greatest profit potential. In particular, many investors believe that the distributed network of IPFS will disrupt HTTP and create the next generation of new value Internet Web3.0. In fact, there were only a few tokens in circulation in the early filecoins. Only from the perspective of the market, a lot of resources are not needed to promote the rise of currency prices. Obviously, these giants have this kind of capital capacity, so the rise in the price of filecoin has a strong capital base.

Why FIL is the most valuable currency

Bitcoin is just a digital asset. Its characteristics affect its limits. It can be said that the maximum value of Bitcoin is just a consensus. With the advent of the 5g era, many companies, governments, and eventually their data storage needs will be transformed into IPFS networks with better technology. Therefore, the value-added of filecoin even exceeds that of Bitcoin, which is no fantasy. Therefore, we can seize the pulse of time, enter the lockdown zone, and participate according to our specific circumstances, so that we can have a better future.

As the value of IPFS is proven, more and more Internet companies and blockchain companies use IPFS for storage and R&D. Therefore, these companies are obliged to purchase a large amount of filecoin to pay for the miners' fees. The currency price will rise as the price rises, and the amount of fees will also be released. The global data center has deepened the national recognition of the document estimation pricing model, and provided document estimation pricing within three years of operation of the filecoin network.

Will Filecoin surpass Ethereum or even Bitcoin?

With the gradual development, stability and security of the Filecoin network, many users in the traditional storage market have also chosen lower-cost, safer, and more efficient distributed storage services IPFSs, which ultimately illuminates the future storage market. Filecoin will become the hottest digital gold in the future.

How to profit from virtual currencies

 The appearance of virtual currencies is inseparable from trading, which will brings about price differences. 

The blockchain sector keeps hot. Virtual currencies have developed over the past few years and Bitcoin’s great success has now formed a large market. In fact, there are more than 1,300 types of virtual currencies in the world. The currency recognized by the public on the market has also tended to a stable state. Although Bitcoin is still the leader in the TOP throne, there are many other virtual currencies that have also shown a hot trend.

The People's Bank of China wants to tighten up the regulation and management of virtual currencies in online games to prevent virtual currencies from impacting the real economic and financial order. It is necessary to strictly limit the total amount of virtual currency issued by online game business units and the purchase amount of individual online game consumers; strictly distinguish between virtual transactions and physical transactions in e-commerce. Virtual currency issued by online game business units cannot be used to purchase physical products. It can be used to purchase virtual products and services such as online games provided by itself.

But no matter which side is correct, as a virtual currency, its existence form has an irreconcilable conflict with the legal sovereign currency of various countries. In addition, the current leading bitcoin price plummets, and it will eventually inevitably end in decline. The editor of Juhui Foreign Exchange thinks that instead of going on a hopeless road, it is better to choose a reliable investment method.

How to Trade BTC? Demystifying money-making channels of virtual currencies

 Digital currency exchange refers to a platform for matching transactions between digital currencies, digital currencies and legal currencies, and is the main place for the circulation and price determination of encrypted digital currencies. Compared with traditional stock exchanges, in addition to matching transactions, digital currency exchanges also assume the roles of market makers and investment banks. The investment bank role of the exchange provides services such as issuance and underwriting of digital currencies, from which the exchange collects currency listing fees, or collects deposits in the form of voting by the exchange community. This article analyzes the profit model of digital currency exchanges by selecting major global digital currency exchanges such as Huobi, OK, Binance, ZB, Gate, and ZBG.

Digital currency exchange refers to a platform for matching transactions between digital currencies, digital currencies and legal currencies, and is the main place for the circulation and price determination of encrypted digital currencies.

Compared with traditional stock exchanges, in addition to matching transactions, digital currency exchanges also assume the roles of market makers and investment banks. The role of the exchange's market maker can increase the liquidity of the market, and the exchange will earn the trading price difference from it. The investment bank role of the exchange provides services such as issuance and underwriting of digital currencies, from which the exchange collects currency listing fees, or collects deposits in the form of voting by the exchange community.

At present, most digital currency exchanges are centralized exchanges, which can be divided into legal currency exchanges, currency exchanges, and futures exchanges. Decentralized exchanges are exchanges that aim at the many drawbacks of centralized exchanges and the practice of decentralized consensus on the blockchain.

Three types of centralized exchanges for virtual currencies:

Fiat exchange

Legal currency exchanges allow users to convert legal currency into digital currency. Due to local banking regulatory regulations, the types of legal currency that can be traded on general legal currency exchanges are relatively limited. At present, there are 23 digital exchanges in the world that open legal currency transactions and have transaction amounts. There are two types of fiat currency exchanges: