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What is the relationship of mining Bitcoin (Do you lose money by mining Bitcoin)?

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What is the relationship of mining Bitcoin? This is related to the profitabilit

What is the relationship of mining Bitcoin (Do you lose money by mining Bitcoin)?

What is the relationship of mining Bitcoin? This is related to the profitability of miners during the bullish market in 2017. At the end of 2016, there were reports that someone purchased BTC worth $100,000 or even $1 million from overseas and traded it on exchanges for profit. However, foreign media later reported that this incident had caused some negative impact. For example, in early 2018, some users sold their digital assets out of concern for the market condition. Later, Li Xiaolai, a well-known figure in the cryptocurrency circle, revealed on Weibo that the Bitcoin obtained through mining has the same price as the current market price, and the price is also opposite.So what exactly is mined? It mainly depends on the following aspects:1. Performance of investment targets.2. The order of magnitude of the amount of Bitcoin mined (e.g. more than 1000 coins).One strategy is to buy a new Bitcoin and then choose other cryptocurrencies as hedging tools based on the market performance of this new Bitcoin. If something’s price rises rapidly, holding it and gaining more Bitcoin means it is getting more recognition and becoming one of the mainstream currency forms. Similarly, buying a newly added Bitcoin to the market increases investors’ willingness to invest, as well as which altcoins they purchase. This is because they can use Bitcoin as a safe haven asset or similar to gold. Therefore, buying Bitcoin is a long-term bullish strategy.

Do you lose money by mining Bitcoin?

Editor’s note: This article is from CYBTC (ID:cybtc_com) and authorized to be republished by Odaily Planet Daily.Bitcoin is one of the most unfamiliar assets to the general public, but does mining Bitcoin lose money? Let’s take a look together!1. What is the essence of “people in the cryptocurrency world”?We know that more than 10 billion people worldwide are running cryptocurrencies or digital currencies, but in China, the number is currently very low. Moreover, China’s computing power is still in the very early stage of development. Therefore, it is difficult for China to obtain scarce resources like gold every year to support its network security.2. What factors have led to the problem of high Bitcoin transaction costs? This may include:1. Do you think your mining revenue is zero or lower than the electricity cost?If I invest in an exchange, you can directly pay all these costs to miners without having to pay them. Otherwise, you will lose all your funds. Because if you want to mine Bitcoin, you need to purchase cheaper electricity than others to participate in mining. In addition, as the regulatory efforts on Bitcoin mining in most countries become stronger, many people will seek other alternatives.3. Have you considered that you are using cryptocurrency for mining? For some investors, Bitcoin mining is indeed a profitable method, but you should understand that when it comes to mining cryptocurrencies, first of all, it is important to understand that it is as important as any other financial instrument, and secondly, you must be aware that its risks may change as the industry develops, such as the decline in Bitcoin prices or government bans on Bitcoin.4. Why does buying Bitcoin earn profits? This is a very interesting thing that many friends don’t even know how to use it. But in the eyes of ordinary users, mining Bitcoin is actually a profitable method rather than speculation. However, many players also believe that even without sufficient investment, they can still hold it for the long term and enjoy the returns brought by cryptocurrencies.5. Besides speculation, another noteworthy aspect is the high threshold for mining. Usually, mining will incur certain expenses, and to avoid losses, the following points are generally considered: 1. Long maintenance time for mining machines; 2. Decline in machine performance; 3. The rewards of the mined blocks are less than 1Mh/s and can be withdrawn at any time, which means that only about half of the approximately 100,000 new blocks produced per minute will generate tokens of about 2mhs per block; 4. Once the mining machine stops operating, it will cause huge economic losses; The most important point is the “mining machine maintenance personnel”. If a company encounters trouble, it is susceptible to malfunctions. Unless a solution is found, the company will not notify the customer in time or cause customer complaints. Instead, the system will be shut down after normal operation.

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