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What is mining? It is digital cryptocurrency, formerly called virtual currency. What cloud computing ability does mining bitcoin have, and can it make money?
Mining refers to the process of using computer hardware to calculate the location of bitcoin and obtain it, which is called mining. Every once in a while, the Bitcoin system will generate a random code on the system node, and all computers in the Internet can look for this code. Whoever finds this code will generate a block and get a bitcoin. This process is called mining.

Computing this random code requires a lot of GPU operations, so miners buy massive graphics cards to get bitcoin faster and make a profit.

Bitcoin has the effect of halving in four years, which means that the number of bitcoins will be halved every four years. In this way, the computing power of Bitcoin will increase, which means that the difficulty of mining will increase. Under normal circumstances, mining generally refers to digging with a mining machine, that is, digging with a computer. These all refer to individual operation or mine-wide operation. Cloud computing mining means that many people dig together, and you can participate in mining as long as you invest a small part.

The usual steps of bitcoin mining are "buy mining machine-deploy mining machine-set mining machine-gain revenue", but the steps of deploying mining machine are affected by many factors, such as electricity price, site, temperature, noise, operation and maintenance, etc. These thresholds need certain conditions and knowledge to be eliminated, thus giving birth to a sub-module of the mining industry-cloud computing capability.

Cloud computing capability is a remote mining mode. Users purchase cloud computing capacity contracts through the platform, lease computing power for mining, and get regular income. The advantage of cloud mining is that users don't need to deeply understand the mining principle and various software and hardware, and they don't need to buy expensive mining machines, and they don't need 24-hour maintenance. They can participate in mining as long as they place an order, which is similar to buying income rights products.

For mine owners, renting and selling the right to use computing power to customers for a period of time at a price slightly lower than the income of self-operated mines can quickly withdraw cash, pre-order the latest mining machines, expand production scale and strive for long-term market profitability. To some extent, it can also keep the mining machine at a low price, transfer risks and hedge the single risk of self-operated mining business.

However, compared with direct participation in mining, cloud computing capabilities also show the following shortcomings:

Even if the platform fully displays relevant information such as mines, mining machines, cooperation and teams. It is still difficult for users to judge the quality of computing power behind the platform, real-time running status (such as whether there is power outage or on-site inspection) or real income data.

The risk of speculating in bitcoin (short-term trading to earn spreads) is higher than that of hoarding bitcoin (long-term bullish), but most people who hoard bitcoin often lack judgment on short-term price changes and "go early". Cloud computing ability brings a small amount of bitcoin income to investors every day, and also controls investors' "frequent operations" in disguise. Therefore, for many people who love Bitcoin, there will be a saying that "it is better to dig coins than to speculate".

The market opportunity of cloud computing capability lies in providing individuals with a more neutral investment method, which is lower than the threshold of self-built mines, lower than the short-term operation risk and lower than the market price cost, which also allows mines to share costs and risks and obtain more abundant cash flow.

The main risk of cloud computing capability lies in the authenticity and stability of computing power behind the contract. In our long-term contact with the mining industry, the high-frequency vocabulary we heard was "pit": beyond common sense, various episodes in the transportation of mining machines, constant interference from viruses and blackmail, fluctuations in futures and late spot, obstacles in cross-border trade, and impossible-to-prevent team ghosts ... So truly stable computing power is scarce to some extent, and stepping on the pit behind it is often years of experience. As an information intermediary, how to help users screen high-quality cooperative mine cooperation, design friendly and attractive products, formulate professional and transparent industry standards, establish disaster recovery plans to deal with various risks, and provide quality services throughout the investment process will become its core competitiveness.

Of course, mining is a long-term development industry, and it takes a certain period to return to its original cost, so whether you can make money depends mainly on whether you can persist.