What is a mining machine? (Is a mining machine valuable?)

08/19/2023 05:25 • NFT Newsflash • 89 views

What is a mining machine? Bitcoin mining primarily involves two methods: one is purchasing ASIC chips (GPU), and the other is using TSMC’s 8nm process CPU and GPU for mining. Ethereum, on the other hand, uses specialized process technology (such as the Ethash algorithm) as the underlying proof-of-work mechanism, which requires computer processing to generate blocks. In addition, there are certain types of ASICs and specific features such as hash rate limits and maximum memory capacity. Mining machines are also referred to as digital currency mining equipment, which can run multiple machines and generate corresponding profits on traditional computers. However, mining machines do not directly provide mining income in the blockchain network.

Therefore, fundamentally speaking, ordinary users may not be directly involved in mining activities because the network value obtained from mining is very low cost. Therefore, for ordinary investors, mining should not be considered as an investment target or a wealth storage method.

However, the calculation unit of mining machines is power consumption. Currently, there are many questions in the market about the large price fluctuations of Bitcoin. (Wu talks about blockchain)

Is a mining machine valuable?

When the price of coins is high, there will be a significant difference in hash rate and power consumption. Shortly after Bitcoin halving, it entered a bear market phase, and mining difficulty became increasingly difficult and expensive. Many investors have turned their eyes to this market. But for ordinary people, this investment may not be realistic due to the rising electricity costs and transaction fees in the cryptocurrency market. Some professional institutions have already sold machines at cheaper prices (such as Antminer S19Pro). And once buyers do not accept new devices, the purchased machines may face losses.

Therefore, the current mainstream in the market is the evaluation of mining machine sales by miners. Since most people use old computers or wooden blocks to mine digital currencies, they often buy second-hand mining machines from Bitmain at a lower price. However, if we look at the spot price, the price of mining machines is still high. After all, a new mining machine can produce about 100,000 coins per day and also requires payment of certain taxes to be sent to other regions for distribution. (Wu talks about blockchain)

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What is a mining machine? (Is a mining machine valuable?)

Is a mining machine valuable?

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