Why do we choose to mine instead of purchasing tokens directly?
Under normal circumstances, the cost of obtaining coins through mining is relatively low, which is the meaning of mining. Mining is a medium to long term investment behavior and it is easier to take the chance of the bull market cycle. Since coins are continuously produced, there is no need to worry about selling them off (the coins are sold now, but the price of the coins rises later); On the other hand, many people buy coins directly. As we all know, it is really hard to overcome the FOMO (Fear of missing our) feeling. Even if people bought tokens at a low price, it is very likely to sell when there is some slight increase in price, and it is difficult to maximum your profits in the bull market.
Why is it a better time to mine in the bearish market?
Low cost: When the market conditions are relatively poor, the price of mining machines is relatively low and the purchase cost is relatively low. In the meanwhile, compared with the bull market, even if the price is high, it is difficult to find a machine sometime. In the bear market, you can buy a machine with better performance at a low price, such as the 110T Antminer S19pro. In 2021, when the price of BTC is $50,000 or $60,000, you can’t get one for $16,000. The current BTC price is about $20,000, a set of machine is only four to five thousand dollars.
More Suitable Computing Power: In a relatively poor market, mining machines with large computing power come with low profit. What's worse, some of them may even be closed for its outcome cannot cover the electricity cost. At this time, the computing power difficulty of the whole network will decrease accordingly. The mining machine will get more coins under the same computing power, especially machines with low power consumption such as the S19pro . The advantage will be more obvious in the bear market .
When the price is not attractive, mining can still get a certain amount of income. What's more, mining is a medium to long-term investment and the probability of encountering a subsequent increase in the price is relatively high.
For example, currently mining in the United States, the electricity price is $0.078 / kWh and the price of each T of S19Pro is 40U. Let's take a quick look at the chart below:
When the current BTC price is 22000U, the static payback period at this time is about 960 days and the comprehensive static rate of return for four years is about 150%;
When the BTC price rises to 24000U, the static payback period at this time is about 790 days and the comprehensive static rate of return for four years is about 180%;
According to the calculation, when the average price of BTC in 2022 is around 32,000U, the static payback period at this time is about 460 days, and the comprehensive static rate of return for four years is about 300%.
For example, when the current BTC price is 22,000U, 10,000 US dollars are invested in mining. Later, sell coins when the price rises to 32,000U. After four years of mining, it is estimated that you can earn about 30,000 US dollars. If the coin price is higher, the income will be greater. The income comparison chart is as follows:
As the token price increases, the price of machines will also rise. In this case, buying the machine at a low price, the cost would be lower and the profit space would be greater in the future.
Why do we choose to mine BTC?
1. Bitcoin has developed since 2008. The price of the cryptocurrency has gone through several rounds of bulls and bears and constantly hitting new highs. Many people also started to understand the block chain industry because of Bitcoin. Among the various token minings, the number of people participating in Bitcoin mining should be the largest. As more and more people recognize Bitcoin, the consensus foundation is also getting stronger and stronger;
2. Bitcoin has been stably using the POW mode of mining. When it carries enough computing power, its mining revenue remains relatively high compared to mining other coins. At the same time, it will not change the algorithm suddenly, which makes it impossible to mine.
How to mine more efficiently?
Mining is a very complicated process, which involves the purchase, transportation, hosting, maintenance of mining machines, etc. The entry barrier is relatively high and the process is very cumbersome. In order to lower the barrier for users and make the whole mining process more efficient, DigiFinex has launched a cloud mining model. Hashrate (Computing power) is the core of the mining machine, which is equivalent to the platform providing one-stop services such as purchasing mining machines, hosting, maintenance and management. Users only need to purchase the corresponding computing power to participate in mining to obtain digital currency.