Analysis of Bitcoin Mining Revenue

Which links have the greatest impact on Bitcoin mining revenue?

More links influence Bitcoin mining revenue, which can be summarizedm31s whatsminer into four major links: mining algorithm, mining hardware link, mining link, and market link.

The algorithmic factor.

The algorithm specifies the difficulty adjustment period, revenue per block, and so on. This is a Bitcoin characteristic that is not affected by external factors, but it can affect other factors. Bitcoin is currently 12.5 bitcoins per block; after 2020, bitcoin will be 6.25 bitcoins per block.

Mining equipment.

Mining machine speed, power consumption, cost, and other segmentsmining app are all part of the mining machine hardware segment. Mining speeds and power consumption vary between mining machines. Furthermore, the price of mining machines obtained by various manufacturers at various times varies. One of the factors that mining farms and miners can humanly influence and improve their earnings is mining machine hardware.

Deployment of mining equipment.

Mining machine deployment time, operational security capacity, mining electricity costs, and so on are all examples of mining deployment links.

The deployment cycle is the period of time between the start ofminer gate production, installation, and testing, and the official online mining of the specified model of mining machine following the individual investment in mining. Simply put, the shorter the deployment cycle, the higher the mining revenue, and the shorter the time to payback.

Capability for operational security. The ability to ensure trouble-free mine operation, as well as the ability to solve problems quickly and resume mining production, is referred to as operation security capacity.

Electricity costs. One of the most important factors influencing bitcoin mining revenue is the cost of electricity. Electricity costs can be artificially manipulated, and current mining is generally calculated at 0.8 RMB/KW; the lower the cost, the higher the return. Because the lower the cost of electricity, the higher the mining revenue, domestic mines are currently primarily built in Sichuan and Yunnan areas with cheap hydropower resources. The cost of electricity influences the mining life cycle. When the mining revenue is less than the cost of electricity, mining is over, as shown on the revenue graph where the profit curve intersects the cost curve.

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