Editor's Note: This article comes fromCybtc Blockchain (ID: cybtc_com), reprinted by Odaily with authorization.
Cybtc Blockchain (ID: cybtc_com)
Cybtc Blockchain (ID: cybtc_com)
, reprinted by Odaily with authorization.
In the current digital currency circle, the arrival of the bull market has basically been recognized, and mining has recently become a topic of concern to many people. Compared with buying Bitcoin directly, ordinary people still recognize the value brought by mining. , So mining became popular, and even mining hardware such as mining machines, graphics cards, etc. began to sell, and some people even prepared to borrow money for mining.
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So is the current digital currency mining suitable for lending?
The author believes that it mainly varies from person to person. I believe many people know the advantages of loan mining. It can increase leverage, quickly return capital, and even make a lot of money. However, if more people want to use loan plus leverage to participate in mining, they also need to consider The risks involved are not copycats. For example, Jiang Zhuoer likes to use loans to mine, but is it really suitable for ordinary retail investors? It may not be really suitable, so let’s analyze the risks of borrowing and mining.
1. Return time and bull market duration
Mining has a payback time. Many people will calculate before participating in mining. For example, the current Bitcoin mining basically has a static payback time of about ten months, and the static payback time of Ethereum is 6 months. About, if you come to mine bitcoins and get on the car to mine now, if you don’t add leverage, then ten months later there may be the following possibilities:
The price of Bitcoin soared, and mining paid back ahead of schedule
The difficulty of Bitcoin has increased, while the price of the currency has skyrocketed, and the return time is almost the same as before
If it is the first case, everyone is obviously happy. After all, the cost will be paid back in advance. If the miners are not greedy, they will sell coins back to the cost, and then it will be mining profit. If it’s the second type, then it’s okay, just wait quietly for the payback, if it’s the third type, it’s okay, if the mining payback time is delayed, it won’t be extended too much, just keep waiting.
It should be noted that the above mentioned is the case of no leverage. If leverage is added, then the first type is undoubtedly profitable, and the second type may require leveraged miners to pay more interest. If it is the third type, then For leveraged miners, there are certain risks.
2. What kind of miner are you?
For big miners or even mine owners or partners, the risk of their mining and borrowing is relatively very low, which is why Jiang Zhuoer can boldly increase leverage mining, mainly because he has very high-quality Resources, such as the lowest electricity cost, the latest mining machines at the best price, etc., can reduce the cycle of his return on capital. Ordinary people basically do not have such resources, so they cannot blindly follow them and increase leverage to mine mine.
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At present, the price of computing power will be statically paid back in about 5-10 months
For example, we may have a payback period of 10 months for mining, and the payback period for others may become 7 months. Similarly, if mining Ethereum, the payback period for others may only be one or two months , This is beyond comparison for ordinary people. In this way, for these people with superior resources, it would be foolish not to use leverage. Pay back the capital, and then start the lie-and-earn mode, and they also have a wealth of hedging tools to lock in profits in advance to prevent risks from happening, and even have their own contacts in the circle, so they roughly know when the bull market high point is, and prepare in advance.
For small miners, because the payback period has increased, if small miners increase leverage rashly, the effect may not be as good as others.
The most important thing about mining is the timing of entry. For example, people who buy Ethereum mining machines in the middle of 2020 are now earning a lot of money. If they buy mining machines to mine now, the income may be slightly less, but it’s okay. As for mining in another six or seven months, it is certain that the risk of mining at that time will be relatively high.
The main reason for this is the difficulty of mining. Generally, the high water season in the first half of the year will increase the difficulty of mining, and the income will generally decline. Although the shortage of chips this year may make the difficulty of mining not so fast, but if the currency If the price continues to rise, it is possible that the machines from the previous mine accidents will be turned out to shine and heat up again. Moreover, due to the shortage of graphics cards these days, some people have even started to buy a large number of high-end gaming notebooks for mining, which shows how crazy mining is now.
4. Leverage ratio of borrowing
Not talking about the leverage ratio of the loan, but only talking about the risk is a relatively obvious hooliganism. No matter what you do, whether the borrowed funds are within the range you can bear is the key. If it reaches 1 million, it is acceptable to borrow 300,000 funds for mining now. If you have sufficient resources and can obtain low-cost electricity, high-quality mining machines, etc., you can increase the leverage ratio appropriately. I didn't have a lot of discretionary funds that were not affected by my life, but I also borrowed a lot of usury loans, so there may be certain risks for myself.
