Can cloud mining and mining machine hosting really make money? How to choose cloud mining platform and mining machine hosting service?
December 29, 2022 8519 by adminMine Machinery Hosting Network (58kuangji. com)
Thirteen years ago, there was no concept of virtual currency mining. Nowadays, virtual currency and blockchain have become a hot field. Many people have started to join in the mining of virtual currency, and the competition has become increasingly fierce. Many people do not have enough money, expertise, and cheap electricity bills. Even if they want to mine, they give up because they are afraid of trouble. Many enterprises saw business opportunities, so cloud mining and mining machine hosting platforms appeared to help novice customers deal with various mining problems. So, can cloud mining and mining machine hosting really make money? How to choose cloud mining platform and mining machine hosting service? Next, let's have a look.
Can cloud mining and mining machine hosting really make money?
To judge whether cloud mining or mining machine hosting can make money, we can calculate whether cloud mining and mining machine hosting can help us make a positive profit by using profit expenditure=profit.
1. Measuring daily bitcoin mining value
First, let's calculate the profitability of 1T daily, that is, the price of bitcoin dug up by 1T daily.
Bitcoin value dug up every day:
1T/(bitcoin calculation rate of the whole network x10 ^ 6T) x6.25x6x24hx current bitcoin price (USD)=* USD per T per day
According to btc.com, the current bitcoin calculation rate of the whole network is 157.90EH/s. Based on the current bitcoin price of $60000, we can get:
1T/(157.90 × 10 ^ 6T) x6.25x6x24hx60000=US $0.3420 per T per day
The formula shows that:
The 1T calculation rate is equal to 157.90EH/s, 1E=10 ^ 6T, and the unit conversion is consistent, that is, 1T/(157.90 × 10^6T)。
Bitcoin generates one block in about 10 minutes. The reward for each block is 6.25 bitcoins. An hour is equal to 6 ten minutes. Therefore, multiplying by 6, and then multiplying by 24 hours a day, you can get how many bitcoins can be extracted by one T a day.
After getting the number of bitcoins dug up at a T rate per day, multiplied by the current bitcoin price, we can get the price of bitcoins dug up at a T rate per day.
2. Measuring expenses and benefits
Let's take a look at the charging status of the cloud mining and mining machine hosting of BTF:
Cloud mining
Suppose that you buy a 120 day cloud mining contract of BTF.
According to the BTF official website:
Calculation rate fee $0.2818/T/day,
Electricity charge $0.0499/T/day,
Daily expenditure per T=$0.2818+$0.0499=$0.3317
Cloud mining profit=(mining profit/T/day – cloud mining expense/T/day) x purchase calculation rate quantity x purchase contract days=($0.3420 – $0.3317) x 30T x 120 days=$37.08
(* This formula is only applicable to the full output method. To accelerate the profit calculation of the profit method, the profit should be divided into elements after considering the profit.)
The risk here is that if the price of Bitcoin falls, the daily mining profit will decline. When the profit is not enough to pay our expenses, that is, the electricity charge+rate charge, it will cause a loss.
At present, the daily expenditure of BTF is $0.3317 per T, and we assume that the mining profit per T is also $0.3317 per day. If the bitcoin price falls to the break even point, it will cause everyone to lose money.
$0.3317=1T/(157.90 × 10 ^ 6T) x6.25x6x24hx Bitcoin price
Bitcoin price=$58194.922
Assuming that the computing power of the whole network remains unchanged, when Bitcoin falls below $58194.922, it will cause everyone to lose money. In this way, the risk is still great.
Mine machinery trusteeship
Suppose that we trust a S19i mining machine through BTF and give it to BTF for full custody.
BTF charges $0.065kw/h for electricity, and the daily electricity charge per T=3.25kw Capricorn 89.00TH/sx24x $0.065=$0.05697
Profit of mining machine custody (rough calculation)=(profit of mining machine custody/T/day – electricity expense/T/day) x calculation rate=($0.3420 – $0.05697) x89T=$25.36767/day
Return period of mining machine trusteeship=mining machine price x mining machine quantity Capricorn mining machine trusteeship profit=$8417x1 Capricorn $25.36767=334 days
Note: BTF will also deduct taxes, maintenance costs, maintenance costs, and mining pool commissions. The above is just a rough calculation of profits, and this part of costs has not been shown in the above calculation process for the time being. The calculation process is only used as a reference for a rough return on investment.
According to the information calculated above, after 334 days, the cost of mining machines can be recovered. Generally speaking, a mining machine can be dug for 3 to 4 years. As long as the electricity charge does not rise sharply or the Bitcoin drops sharply, this mining machine custody contract is relatively stable.
As above, let's calculate the drop of Bitcoin, which will lead to loss. Assume that Bitcoin's daily profit per T falls to our electricity expense of $0.05697/T/day.
$0.05697=1T/(157.90 × 10 ^ 6T) x6.25x6x24hx Bitcoin price
That is, when the price of Bitcoin drops below $9995, we will lose money.
Note: The computing power of Bitcoin is constantly changing. The mining reward of Bitcoin will be halved every four years. The information here can only be used as a general reference. In addition, BTF does not charge management fees before the mining machine profits, and the service management fees after the profits are 30% of the net output BTC. It is recommended that you carefully calculate the return on investment before investing.
How to choose cloud mining platform and mining machine hosting service?
1. The credibility and background of the survey platform
When Xiao Bian analyzed cloud mining, he found that nearly nine of them in the market are cloud mining, and the trusteeship of mining machines is a fund disk or a fraud platform. These platforms use false mines+self defined withdrawal standards to create a perfect capital plate. You can cut leeks by setting up a website at will.
Therefore, before starting cloud mining or mining machine hosting, it is important to investigate the enterprise background and user feedback.
Note: Back tracking does not 100% ensure that the relevant cloud mining/mining machine hosting platform is always free from problems. It is recommended that you diversify your investment and always pay attention to avoiding risks.
2. Determine the machine and power conditions of the calculation rate, and its mine site location
Does the cloud mining/mining machine hosting platform really have a hardware server farm? Formal and powerful systems will actively introduce relevant information.
Is the model of mining machine used on the platform a new type of mining machine? How about energy consumption? How about the mining efficiency? The new mining machine has high mining efficiency, stable operation, and higher profits. For example, the ant S19pro is called the first mining machine by many miners.
Where is the mine of the platform? Is the electricity charge cheap and stable? Electric charge is a key variable of mining cost. Can the platform provide stable and cheap electric charge to support high-quality calculation rate? Is the local policy of the mine open to ensure the stable operation of calculation rate? These are the issues we must consider when choosing cloud mining and mining machine hosting platforms.
3. Whether to make profits according to the third-party ore pool query calculation rate
Many systems will be sold beyond the calculation rate. In fact, there is no specific computing power behind them, even no mining machine. Therefore, many cloud mining and mining machine hosting enterprises can only query the calculation rate on their own platforms, and cannot query the calculation rate by specific third-party mining pools.
As investors, if we can't query the calculation rate through the third-party ore pool, how can we determine whether the platform has the calculation rate overrun?
When selecting platforms, you must pay attention to that regular platforms can see the mining conditions of specific calculation rate from the third-party ore pool.
For example, BitFuFu can connect to the fish pond (F2Pool – one of the famous mining ponds) to query the mining status of the calculation rate, which further verifies that BitFuFu is really mining.
4. Services provided
After we found a reliable cloud mining and mining machine hosting platform, and then compared with the services provided by each company, there was no unified standard to stabilize this.
5. Whether there are specific settlement rules
If you have a good understanding of the asset market moves, you must have heard of strange and unusual errors in the asset market. Regular platforms do not have very special requirements for withdrawal.
Once it is found that a platform has set various obstacles to the payment, the company is in nine cases out of ten a fraud platform.
6. Customer Support
For those without basic technical knowledge, cloud mining is the simplest way to start mining. However, the mining process may also encounter problems such as upgrading property or purchasing errors.
Reliable customer support can help everyone solve problems in a timely manner, which is also an important manifestation of the company's strength.
Speaking of this, I believe you have a certain understanding of whether cloud mining and mining machine hosting can make money, and how to choose cloud mining platforms and mining machine hosting services. In general, the popularity of Bitcoin has made many people join the mining industry, or prepare to join the mining industry. The competition in the field is becoming increasingly fierce. Nowadays, mining is difficult to obtain huge profits, and there is a certain risk of loss. Therefore, everyone must have a comprehensive understanding before entering the field, and not blindly follow the trend.
