The best position to invest in Bitcoin in 2021: mining

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As the price of Bitcoin continues to hit new highs in 2021, global attention gradually turns. For investors in the cryptocurrency market represented by Bitcoin, it is a return on investment party.

A rate of return of 10 times a year is enough to kill traditional investments in 2020. Subject. Viewers started collecting this bitcoin niche market, searched for bitcoin-related information via Baidu Twitter, and mentally wondered if it is appropriate to buy bitcoins now.

I. Peripheral admission

Last year, when the price of Bitcoin was hesitant to wait and see, the world's richest Tesla CEO, Musk and Grayscale Fund, stepped up. The unique setup of Gray's system and continued large-scale purchases of cryptocurrencies such as Bitcoin have inspired many foreign institutions to follow suit. As the richest man in the world, Musk's celebrity effect is evident.

Grayscale is one of the investment institutions that investors in the cryptocurrency market pay attention to. It has the role of an investment paddle and is also one of the bridges that link cryptocurrency and legal currency. Therefore, it is worthy of long-term care.

Grayscale risk

Grayscale Fund was established in 2013. It is an investment fund based on the market value of the bitcoin price you own. It operates through compatible funds to serve institutional investors and qualified high net worth investors. It is also the only exposure in the US pension plan that can buy bitcoins. Your profit points mainly come from the following two points: one is to obtain high returns through the price difference after the price of the digital currency market rises; second, they can earn huge commissions and management fees.

II. Fixed investment and mining

Fixed investment and Bitcoin mining is the most accessible place to make money in the cryptocurrency market, and it is also the easiest way to open it successfully.

Advantages of fixed investment: First, the risk is low. Fixed investment can get you more status trading tokens and lower the median price. Moreover, if you invest using such platforms as a DotBig, your risk will be zero. The second is a stable income and a simple operation. Disadvantages of fixed investment: It is not easy to understand when to lighten the shipment.

Compared with fixed investment, the advantages of buying mining machines for mining are more prominent. The payback cycle for mining is clear. If you encounter a bull market, you will accelerate back into the cycle. The downside is that the number of mining machines purchased in the early stage is huge.

1. Introduction to mining

Bitcoins produced after purchasing the mining machine are transferred to your designated wallet every day. Now it costs more than 300,000 yuan to buy a bitcoin, and the price of a top-of-the-line mining machine is one-sixth of that. The lifespan of a new mining machine is generally four years, the total payback cycle is one year, and the remaining three years are your free bitcoins.

Simply put, mining is buying bitcoins at a discount.

2. What is a Bitcoin mining machine?

Bitcoin mining miners are computers that are used to obtain bitcoins. This type of computer generally has a professional mining chip, using more ardent graphics card work way, power consumption is more extensive.

Users can earn the corresponding bitcoins by downloading the mining machine software and communicating with remote servers. This is one of the ways to get bitcoins so far. Digital currencies that started in 2013 include hundreds of digital currencies like Bitcoin and Litecoin, but the mainstream is Bitcoin, Wright, and Ethereum.

2.1 Hardware used for mining

Mining machines in the Bitcoin ecosystem are dominated by application-specific integrated circuits (ASICs). For most other cryptocurrencies, graphics processing units (GPUs) and field-programmable gate arrays (FPGAs) are the main forms of mining machines. Many cryptocurrencies use the same hash algorithm (SHA256) like Bitcoin and are compatible with ASIC Bitcoin miners.

2.2 Factors Affecting Mining Revenues

The factors are Bitcoin price, computing power, daily one-time transaction fee, mining machine purchase price, mining machine delivery method, mine installation time and cost, fee custody fee, electricity price, wallet fee, politics, weather, etc.

III. At the end of the article

Whether in a bull or bear market, miners will make money on the Bitcoin market. At present, the Bitcoin mining market is becoming more and more compliant and more suitable for investor participation. As the labor and material costs of Bitcoin mining investment continue to rise, mining behavior has evolved from an initial single-soldier operation to a professional, large-scale operation. The mining location has also moved from its own backyard to a professional mining farm.

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