Delayed delivery of the miner
1、 mining principle
at the beginning, we could dig bitcoin with the computer CPU. The founder of bitcoin, Nakamoto Tsung, g out the world's first creation block with his computer CPU. However, the era of CPU mining has long passed, and now bitcoin mining is the era of ASIC mining and large-scale cluster mining
looking back on the mining history, bitcoin mining has gone through the following five times: CPU mining → GPU mining → FPGA mining → ASIC mining → large-scale cluster mining, The mining speed changes are as follows:
CPU (20mhash / s) → GPU (400mhash / s) → FPGA (25ghash / s) → ASIC (3.5tash / s) → large scale cluster mining (3.5tash / s * x)
mining speed, which is called computing power in professional terms, that is, the ability of computer to generate hash collisions per second. In other words, how many hash collisions can our miner do per second is the calculation force. Computing power is the ability to dig bitcoin. The higher the computing power, the more bitcoin you dig, the higher the return
in the world of bitcoin, a data block is recorded about every 10 minutes. All mining computers are trying to package the data block and submit it, and the person who successfully generates the data block will get a bitcoin reward. Initially, bitcoin rewards of 50 bitcoins could be generated about every 10 minutes. But the payment is halved every four years, and now the bitcoin network can generate 25 bitcoins every 10 minutes
to successfully generate data blocks, miners need to find the effective hash value. To get the correct hash value, there is no shortcut. You can only guess. The process of guessing is the process of computer random hash collision. If you guess correctly, you will get bitcoin
Mining method: from a miner to a large-scale mine, you need to prepare a miner, a computer that can connect to the Internet, an AUC, a raspberry pie, power supply and all kinds of connecting lines, etc. The connection order of various devices is network cable - & gt; Raspberry pie - & gt; Microusb cable - & gt; AUC-> 4Pin cable - & gt; Mining machine and power supply 
< EM > Figure 3: Mine Map (scale of tens of thousands of mining machines) < / EM >
nowadays, the profit space of small and medium-sized absenteeism who take one mining machine home or deploy a small family workshop (dozens of mining machines) is very limited, and the mining instry is graally concentrating on enterprises and teams with low-cost power resources and professional deployment ability
there are many factors that affect the mining revenue, such as the performance and power consumption of mining machinery, the computing power and difficulty of the whole network, the deployment and operation and maintenance capacity of the mine, the availability of low-cost electricity resources, and the currency price and policy guidance, etc. At present, excellent mining enterprises have the ability of chip research and development, a lot of computing power, professional mine deployment and operation experience, etc. in the future, resources and computing power will be more and more concentrated in these mining enterprises
2. Mine pool
in addition to the above equipment, you also need a necessary tool - mine pool. The function of the mine pool is to gather a large amount of mineral computing power, increase your probability of getting bitcoin, and at the same time, distribute your future bitcoin income to your account in advance
the simple explanation is as follows: now the bitcoin network generates a block every 10 minutes, which contains 25 bitcoins. Suppose there are 1W people in the world participating in mining, then in these 10 minutes, only one lucky person has taken these 25 bitcoins, and the others have nothing. The principle of the mine pool is that everyone mines in teams and distributes according to the agreed distribution method, so that the income of the miners' bitcoin tends to be stable and the risks of the miners are reced. Let's take the most common PPS allocation method as an example. Suppose that your computing power is 10t, and the computing power of the whole mine pool is 100t. Your computing power accounts for 1 / 10 of the total computing power of the mine pool. Suppose that the mine pool can generate 10 bitcoins a day, then you can get 1 bitcoin a day
3. Cloud computing power
in reality, the supply of mining machines often exceeds the demand, and at the same time, the delivery of mining machines needs a long waiting period. Miner installation, commissioning, maintenance and other processes are very complex, which requires a lot of energy. Miners have to enre the noise and heat of miner. For miners, the biggest cost is not these, but the high electricity charges consumed by mining. The profit space of small and medium-sized miners is getting smaller and smaller, even negative
Mining income and risk mining income can be calculated by the following formula:Mining income = generated bitcoin * currency price - mining machinery cost - electricity fee - custody fee
if you are just a small miner, generally you only need to dect mining machinery cost and electricity fee
Mining risks are as follows:
< UL >at present, the number of bitcoin is less than 4.5 million. If we do not issue additional bitcoin, the price of bitcoin will fluctuate, and the price callback will lead to the extension of the payback cycle
mining difficulty improvement at present, our machines can meet the market demand
the risk of power outage
< EM >
< / EM >
The wealth myth of "one coin, one villa" is still widely spread in the currency circle, and new investors are eager to try. But in fact, a stable power structure has been formed in this small circle, from mining machinery manufacturers to large mine owners, and then to mining pools
manufacturing and selling mining machines, mining, building mines and building ore pools, the "mining circle" has become another way to get rich in the blockchain world, and mining machines have also become a little-known "big business"
according to the imagination of Nakamoto, the inventor of bitcoin, the ideal state should be "decentralized", with computing power scattered all over the world. However, contrary to decentralization, the mine pool is absolutely centralized, and more and more mining machines are connected to the mine pool
this article was first published in the Southern Weekend
"if speculation is a road of no return, then investment in mining machinery is a business that can make a steady profit without loss, and it is only a matter of time before the cost is recovered." Zhong Xi, general manager of Shenzhen Aibo times Technology Co., Ltd., calculated an account. A miner earns 200 yuan a day, which can be recovered in 120 days, and then the profit
in October 2017, in addition to his main business, Zhong Xi joined the mining army and quickly became a big boss in the mining circle. He operated many large mines in Jiangxi, Sichuan, Guizhou and other places
in fact, the business of "steady profit without loss" still depends on the continuous rise of currency price. In the past two months, the price of bitcoin has dropped from US $15000 to about US $10000, or even below US $6000 at one time, which has extended the cycle of mining machinery return. If it keeps falling, the profit will be far away
in 2012, four years after the advent of bitcoin, mass-proced mining machines appeared. Before that, mining was mainly a private activity, which could be completed by a home computer“ At that time, the home computer was the money printing machine, and a lot of bitcoin could be g up every day. " Huang Shiliang, a senior digital currency player who sold mining machines in his early years, recalled to Southern Weekend reporters
after the emergence of mining machine, mining began to be "socialized", with the emergence of mines and pools, and mining became a collective work. The indivial miner is entrusted by the mine, just like the workers on the proction line, as long as they are there, they can get paid every day
manufacturing and selling mining machines, mining, building mines and building ore pools, the "mining circle" has become another way to get rich in the blockchain world, and mining machines have also become a little-known "big business"
China has become the world's largest procer of mining machinery. Since 2012, a number of miner manufacturers have been born in China, such as Shenzhen bitquan Co., Ltd., which proces cat roasting miner, bitmainland, Jianan Yun and Yibang communication, which are now famous. In Huaqiangbei, Shenzhen, foreigners can be seen everywhere asking about the price of mining machinery with translators
recently, in an interview with the media, the CEO of bitcontinental, Mr. Zhan Ketun, said that this startup company, which has been established for only four years, had a revenue of about US $2.5 billion in 2017. Bitcontinent is known as the world's largest miner, whose ant miner has always been the hard currency of the coin circle and miner world
just like the coin circle, the mining circle also needs belief that the mechanical mathematical operation of mining machines every day can create great wealth
However, contrary to the "decentralization" advocated by bitcoin, the miner's world is moving towards "centralization". Miner dealers build their own mines. After the investors buy the miner, they are entrusted by the seller; The procers build their own mines and manage themthis process of "centralization" made the wealth of the mining circle snatched by a few people, and it was not easy for Zhong Xi to enter the core circle
calculation force "centralization"
the main function of the mine is to provide a place for scattered mining machines to operate. But it is the "ore pool" that really plays the role of integration
the so-called "mine pool" can be simply understood as "cooperative mining". The miners and the mines give the calculation power to the mine pool, and the mine pool is used as the only address to access the digital currency network for mining, and then distribute dividends to the miners according to the calculation power of the mining machine
the history of ore pool is longer than that of mining machine. In November 2010, the mine pool named slush appeared. Today, its official website says "the world's first mine pool", which is also recognized by the coin circle. Compared with the mine, the construction of the mine pool needs certain technology, and the threshold is relatively higher
the person in charge of a well-known domestic mine pool explained the principle of the mine pool to the Southern Weekend reporter. He compares mining to buying lottery tickets. If you dig alone, the probability of winning the lottery is very unstable. You may win 100000 today, but you won't in the next six months
"gather the people who buy lottery tickets together and buy them in a unified way. No matter who wins, they will be divided according to the proportion of money they pay. In the coin circle, the mine pool plays this role. " The person in charge said
it's not complicated to connect the mining machine with the ore pool. According to the operation guidelines of the major ore pools, it can be completed in a few steps, and then according to the calculation power provided by ourselves, we can get benefits from the ore pool. The miner is like a worker standing on the proction line, receiving a fixed salary every day
the mine pool with huge computing power and many mining machines has an absolute say in the coin circle and the mining circle. For example, if you want to issue a new digital currency or dominate the bitcoin bifurcation, you generally need to get the support of the mine pool. Without the support of the mine pool, no one will dig the new currency, so it is meaningless
in addition, when a hot new coin comes out, the mine pool can also use its own miners to pack it quickly and take the lead in the rush purchase of these new coins
in June 2017, when SNT and EOS were issued, Southern Weekend reporters witnessed the scene of minchi snapping up tokens. Because there are too many investors, many indivial investors can not put their funds into the designated position, but the person in charge of a mine pool can easily complete this operation
according to the imagination of Nakamoto, the inventor of bitcoin, the ideal state should be "decentralized", with computing power scattered all over the world. However, contrary to decentralization, the mine pool is absolutely centralized, and more and more mining machines are connected to the mine pool
on January 18, 2018, Emin Yun silash, a computer professor at Cornell University, and other five people co authored a paper pointing out that there is an implicit power structure behind bitcoin and Ethereum, the two major digital currencies, and mining is too centralized, in which 50% of bitcoin's computing power is controlled by the four major mines
In fact, this problem has always existed. Four years ago, the founder of Ethereum, vtalik, noticed this problem when he wrote Ethereum white paper. He wrote: "this problem can be said to be very serious. At the time of writing this article, the two largest mines indirectly controlled about 50% of the computing power of the whole network." Up to now, this problem has not been solved. An early translator of the Ethereum white paper told the Southern Weekend reporter, "this is not a technical problem, but a human problem."5
recessive power structure
in the mining circle, the top of the food chain is mining machinery manufacturers. At present, the three recognized mining machinery manufacturers are located in China. Through the proction and sales of mining machines, they get a lot of profits. At the same time, they also set foot in the construction of mines and pools, and have the right to speak in the whole coin circle
ant mining pool is one of the top two large mining pools in the world, and its computing power accounts for 17% of the total network computing power. However, according to instrial and commercial data, it was founded by bitmainland; Several investors of Jianan Yun are also investors of Hangzhou mining Pool Technology Co., Ltd., which has its own mining pool hash and mining platform, but the mining pool has ceased operation at the end of 2017
Yibang communications has set up three blockchain companies in Hohhot, Wuhai and Zhundong Economic Development Zone in Inner Mongolia. A salesperson of Yibang communications told reporters at Nanfang Weekend that they have mines and mining businesses in these three places, but these mines have been operating at full capacity, and there is no machine space to host new mining machines"we are building a new mine in Irkutsk, Russia, where electricity charges are much lower and new mining machines can be hosted there." The source said
above the mining machinery manufacturers, it is the harvest of chip giants“ The core technology of mining machinery lies in the chip. Whoever has the chip can proce more mining machinery. " Ding Yang told reporters at Nanfang Weekend that the chips are mainly in the hands of several giant manufacturers, such as TSMC, NVIDIA, AMD, etc
since 2015, TSMC has always been the largest chip supplier of Jianan Yun. In 2015, the chips purchased by Jianan Yun from TSMC accounted for 69.62% of all the chips purchased by Jianan Yun. Since then, this figure has been maintained at about 60%. Most of the profits of Jia Nan Yun Zhi were made by TSMC
On January 18, 2018, at the presentation meeting of TSMC's fourth quarter financial report, chairman Zhang Zhongmou said that although the mobile business prospect this year is weak, the company's revenue will still grow by 10% - 15%. One of the key factors is the demand for chips e to the continuous and steady development of cryptocurrencyunder the mining machinery manufacturers, there is another power structure. Jianan Yun disclosed this secret in its 2017 prospectus. In the first four months of 2017, four of the top five customers of Jianan Yun were "indivials". According to public information, three of them are well-known "wrists" in the currency circle
Wu Gang, the largest customer, was the first group of miners, and later founded haobtc, which has one of the world's top ten mines; Lin Zhipeng, the second largest customer, is the founder of Xiaoqiang mining machinery. He has been engaged in the proction and sales of mining machinery for a long time. He has been cooperating with Xie Weiqin, the sixth largest customer; Wang Jin, the third largest customer, founded bitbang, a coin circle information websitethese big customers are not simple miners, they all have their own influence in the coin circle. Mechanical operation of the mining machine to bring them income at the same time, also brought the right to speak
according to an insider in bitmainland, most of the big customers in bitmainland are big guys in the currency circle. However, bitmainland officials declined an interview with the Southern Weekend reporter. The company's Public Relations Department responded that it was not convenient to disclose the content because it signed a confidentiality agreement with its customers
"one coin, one villa" wealth myth is still widely spread in the currency circle, and new investors are eager to try. But in fact, a stable power structure has been formed in this small circle, from mining machinery manufacturers to large mine owners, and then to mining pools
most of the new entrants can only make the harvested "leeks"
computing power of 5.6gh/s, the price of 3000 yuan "futures miner", so that you can back to the original in 30 days or so, and the cash miner back to the original time is about half a year, it can be seen that the temptation is full! However, in April, the author ordered "butterfly machine", the ancestor of "futures miner", on the US website. At that time, the book could be returned within 9 days, but now the goods have not been received, and the time of returning the book has become dozens of days
why? As more and more people join bitcoin, the difficulty of mining will increase and the income will decrease. Taking the equipment in my hand as an example, in early June, I can get 130 yuan of income from mining every day, but by the end of June, the income will be less than 50 yuan. Those futures mining machines are now back to the original time is 30 days, a few months later when you receive the goods... Think about it all feel terrible
therefore, returning to the original in 30 days is a cover up
the second trick: Celebrity investment / Tauren team
now there are many such futures mining machines in China, but they will play the banner of celebrity / Tauren to attract customers in the publicity. For example, in the early days, some people publicized that their technical team was composed of graate students from Tsinghua University / Chinese Academy of Sciences, in order to show that the mining machinery could be proced on time. Recently, the futures mining machinery company changed to claim that its partners included the founder of XX website, the former VP of XX website, and so on
but the problem is that no matter what kind of celebrity or coworker, they can't change the reality that the miner can't be delivered in a few months (the reason will be explained later)
barrier three: it is called
the real threshold of Miner: Avalon chip ordering
bitcoin miner is mainly composed of miner motherboard and Avalon chip. The former has long been published by Avalon miner's real inventor, Dr. pumpkin Zhang. Any electronic factory can download information and make it by itself. In addition, the overall cost of various electronic components is very low
the core Avalon chip is not so simple, it must be manufactured by a chip foundry such as TSMC. However, as Avalon chip is a kind of ASIC, unlike CPU and flash memory, it is a general-purpose chip, so the foundry must receive orders to start proction. This involves two thresholds: first, the order should start from 10000 pieces (the total price is about 5.6 million yuan), and second, it will take at least two or three months to deliver the goods after placing the order
this explains why the "futures miner" has to pay several months before delivery, and also explains why the "futures miner" manufacturers require you to pay in advance and do not allow a refund.
Ryan Ding
Ryan is an experienced financial expert, blockchain consultant and senior gamer. Ryan graated from the Business School of Michigan State University with a degree in finance. While at Michigan State University, Ryan led the third largest world of Warcraft guild in North America. Before creating GTEX, he worked for eight years at major financial institutions on Wall Street. Ryan is a pioneer of token economics and believes that game token is the future of the game instry
Lyn Zhao is a master of electronic engineering at King's College London. Since, he has worked in State Grid Corporation and investment banks such as UBS and Bank of America Merrill Lynch. He has rich experience in quantitative analysis, trading and data science. At present, he mainly focuses on digital asset quantitative trading and blockchain technology. Lynn has a wealth of entrepreneurial experience and has worked in China and the UK. He is passionate about E-sports and is also a deep game player and developer of Warcraft RPG game map<
Vlad Milosevic
Vlad is an experienced marketing person and senior person in the game instry. He graated from Davis & Elkins college. He has created a number of large game communities in Europe, which can generate more than 10 million page views per month and generate more than $10000 in advertising revenue. Vlad currently has a successful online marketing organization, GS power. He is the co-founder of GTEX because he believes that blockchain will revolutionize the game instry.
234 people make 360 million a year. This company is going to be listed
Shenzhen Huaqiangbei once became the largest distribution center of bitcoin mining machine sales in China and even in the world. So, how much money does the miner make? Recently, Jianan Yun, a bitcoin mining chip manufacturer, submitted a prospectus to the Hong Kong stock exchange, showing a different start-up company:
there is no factory, only 234 employees, single proct, 99.1% of the income comes from selling mining machines , and the profit in two years has increased by more than 200 times, making 360 million yuan a year
although the profit of Jianan Yun is growing rapidly, the big fluctuation of bitcoin price and the change of market acceptance are still the existing risks for the company
As a matter of fact, negative comments on bitcoin are all around the world. Ma Yun also said, "I think the block chain is not a bubble, bitcoin is."in addition, some research institutions are short on bitcoin and long on other cryptocurrencies. Dongzheng futures pointed out that it was bearish on bitcoin, and said:
"we believe that there is a callback pressure on cryptocurrency as a whole, and it is possible for bitcoin price to drop to US $1000. In the long run, if you are optimistic about blockchain technology, you can choose start-ups. Cryptocurrency and blockchain technology are interdependent. In the future, we are more optimistic about cryptocurrency with platform and practical application scenarios, such as Ethereum based Ethernet currency and reborn currency to solve cross-border payment. "
source: Netease News