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What is a mining machine (What does mining machine mean)?

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What is a mining machine? Can it solve any problems? How are the types of coins

What is a mining machine (What does mining machine mean)?

What is a mining machine? Can it solve any problems? How are the types of coins and profits distributed? Currently, one of the hottest terms on the market is called Bitcoin (BTC).

Bitcoin is a form of virtual currency that generates value through transactions using encrypted digital currency. This mechanism was invented by some individuals in the early days, such as Litecoin or Ethereum, which are virtual currencies based on blockchain technology. In fact, most virtual goods exist in the market in the form of Bitcoin, including games, electronic products, and other fields. Therefore, Bitcoin is also known as a “decentralized asset.” So, what is mining? Simply put, it is just converting computing power into the effective output value within a certain period of time. When you calculate the amount of Bitcoin you can obtain within a certain period of time, you can receive corresponding rewards. If we calculate based on the ratio of 1T per block, there will be approximately 100 Bitcoins as income. In other words, each miner will earn one or two hundred dollars in electricity costs for the production of Bitcoin every day. Therefore, mining is a high-risk investment, but due to the high cost, many people are pessimistic about the price. So let’s first take a look at the price of Bitcoin. Due to Bitcoin’s strong speculative nature, mining generally falls into the category of high-risk investments. In addition, many project teams choose to use Bitcoin for development, and the profits of these projects mainly come from funds obtained through mining. However, Bitcoin’s price fluctuations are large, and mining is a problem that arises in order to reduce the entry threshold and increase the return on investment. On December 16, 2017, according to data from bitcoin.com, Bitcoin’s 24-hour increase was 11.8%, and as of the beginning of 2019, it has fallen below the $30,000 mark.

What does mining machine mean?

Mining is an emerging thing in the blockchain industry. Its essence is actually a distributed computer. The encrypted currency mined on the Bitcoin network can be divided into three categories: ordinary users (BTC) and small miners (ASIC).

In simple terms, ordinary people use computers or PCs to mine coins, play games, and other activities, and then earn profits and income through computing power. For example, playing games requires the consumption of graphics cards. If you want to achieve high returns, you must use mobile phones or smart watches to purchase mining equipment and so on. However, for novices, there is no way to directly participate in digital asset trading, so most people will choose some hardware devices as reference for investment. The part of the people who come into contact most often is companies like “Bitmain”. So, what is the difference between different mining machines? The principle of it is stated like this: “After I bought an S9 mining machine, it has a memory capacity of 4GB, and it can run for 5 seconds if it’s lucky.” In other words, a new machine can get about 10 times the electricity cost, which can reach about 1000W. “How much is the price of Antminer?” because the old mining machines only cost a few thousand yuan, and the price fluctuates greatly. There are even many other manufacturers considering selling their own mining machines. “TSMC has already raised prices by 2 points. Take a look at how many major brands are producing this new type of chip now.” This statement is a bit like Avalon in Huaqiangbei, but currently, it seems that there are not many mainstream brand mining machines supporting these models, so many retail investors just confuse the two. (Screenshot of Bitcoin block explorer)

As mentioned in the previous article, “After the Ethereum 2.0 upgrade, a large number of new mining machines are expected to appear in the first half of 2020”. We can see that although the previously published old versions of the Ethash algorithm are fine, recently, with more POC algorithms coming out and the impact of the Pow halving event, there have been many articles about ETH mining in the market this year. Jia Nan Yunzhi also recently released the eos12 series mining machines…

Of course, some people may regard this as a major change. The Ethereum 3.0 upgrade will bring a series of changes. For example, the Ethereum Foundation announced plans to launch ETH1.0 before the end of 2021; Ethereum Classic officially postponed the update date and will go live in June of next year. In addition, according to the latest news, Antpool has resumed normal operation today and will continue to promote the audit of Ethereum contracts. At that time, it will audit new projects developed based on the so-called “Mimblewimble protocol” (a virtual currency protocol).

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