RHY: Why do miners want to pay for electricity even if they have to borrow money when the market is bad

It’s said that mining is very profitable. Many people who were not in the circle were forced to squeeze in. In the first month, the market is still good, and the daily return is considerable. In the second month, although the market fluctuates, the income calculated at the end of the month still exceeds my expectation. So I decided to add the cloud computing power contract in addition to stealing joy. In fact, I also understood that this opportunity to lie and earn money may not exist in this village.

1, Five months later, the market began to decline, then the currency price continued to be weak and the income from mining was shrinking day by day.

Finally, in this year’s Black Swan market, we finally met the situation that the income could not meet the expenditure, so we endured the pain and cut the flesh, didn’t play the electricity fee and didn’t pay it, and became the block chain scam from the block chain revolution overnight.

This is the general experience and inner portrayal of the cloud computing miners who entered the site since June last year.

2, Learn how to calculate sunk cost and choose the scheme with the least loss even if there is a loss

No industry can guarantee you to make money all the time. Bitcoin’s mining revenue is obviously affected by the secondary market. If the mining revenue and loss in ten and a half days immediately cut off, and senior old miners have to pay for electricity even if they borrow money, what is the gap in cognition?

To make a comparison, you have a WhatsminerM30s (720 day period) mining machine rental product. The daily rental fee is 20.04 yuan, plus the electricity fee is 51.12 yuan for one day’s start-up cost. In the middle of three years, the extreme situation happened, the daily mining income is less than 51.12 yuan, many new miners will choose to give up the mining machine for the sake of stop loss.

miner

miner

The old miner thinks so:

First of all, the cost of mining machine is paid in one time. No matter whether the machine is opened or not, the sunk cost is 20.04 yuan every day. This kind of loss is called actual loss. If you choose to continue mining, you will get bitcoin. This kind of loss is called floating loss. Floating loss can be converted into profit. Calculate another account. Even in the case of a loss, if you invest 50 earnings and 40 losses per day, the floating loss is 10 yuan. If you choose to shut down, the actual loss per day is 20 yuan. In the case of a loss, of course, you choose the smallest one.

Even if a loss has been generated, the best decision is to make the loss become floating loss as much as possible, rather than the actual loss. Floating loss can be converted into profit through the fluctuation of currency price, but the actual loss is really just a loss.

3, Learn to use tools to resist risks

Mining – selling money – putting in mining is a reasonable way, but it is not the best profit model. According to statistics, bitcoin’s best market every year usually appears in a certain week, and the subsequent market can only be described as mediocre. The rational mining model should be mining – Tun Coin – selling at the right time. Two or three times of selling operation in a year is the most appropriate, and the comprehensive income is more ideal.

There is a problem that the cost of Tun coin is relatively high, because miners need to sell coins to pay for electricity, Tun coin will increase the financial pressure on miners. At this time, we should learn to choose tools to hedge the risk of banknotes, which will test the ability of miners. RHY provides the service of saving currency and generating interest, trusteeship the currency to the platform, and the platform will settle the income for the miners according to a certain interest rate. Both the deposited currency and the additional income can hedge the fluctuation of the market. Saving currency and generating interest is an ideal solution for the miners to deposit currency.

In fact, there is only one point. Don’t affect your mining plan because of the temporary fluctuation of the currency price. When you want to give up, please think more about your sunk cost and the potential huge profit space in the future. Stick to it. Bitcoin has never let his believers down.