Why Bitcoin Mining Still Vibrant When the Bitcoin Price Slumped?
In the early days of the Bitcoin, people just need a good CPU and software to start mining. However, the number of blocks is fixed, the output of Bitcoin will be reduced by half every four years and more people participates in the bitcoin mining, therefore, the rewards of a single miner are less and less.
In fact, mining speed equals to the hashing power, which indicates the ability of computers to produce hash collisions per second. That is to say, hashing power is the number of hash collisions happened in our mining machine every second. Hashing power is the ability to mine bitcoin. The higher the hashing power, the more bitcoin can be mined and the higher return will get.
Nowadays, mining has changed from CPU mining to ASIC mining. It is generally carried out by mining farms. Investors just need to pay regularly for the mining machines and electricity to get profits. Therefore, the risk of mining has decreased. Compared with the cryptocurrency speculation the risk of coin mining is much smaller.
However, for single miners, there are some disadvantages. For example, the expensive upfront input cost such as mining machines cost, electricity fee, maintenance costs, and venues costs. The threshold for single miners is too high. At the same time, the cryptocurrency mining industry is still in a high-speed development stage, the mechanism of hashing power market is still not perfect, the mining machines is mixed, therefore it requires the single miners have professional knowledge and strong recognition ability to participate in mining.
There are also many other uncontrollable factors. For instance, the hashing power of the whole network is almost monopolized by large mining pools; countries have different policies on cryptocurrency and local governments have different charges for electricity, which makes the cryptocurrency greatly affected by policies; the risk of the mining farm scam and the opaque running of the mining farm makes investors have weak control over their investment; moreover, the natural and man-made disasters always cause heavy losses. In June 2018, floods in Sichuan, China, caused several mining farms were flooded which dramatically reduced the hashing power of the whole network. Tens of thousands of mining machines were destroyed, and only 2000 were rescued. In the face of these uncontrollable factors, what we can do is limited.
But as the development of mining mode, the way to avoid the above-mentioned risks is now available.
Nebula Plan is dedicated to the cryptocurrency mining industry and is an international professional hashing power lease platform designed to provide one-stop services for cryptocurrency investors. Nebula Plan has built a 450 MW substation for mining. The following are the services that Nebula Plan provides: hashing power lease, mining farm operation, hashing power investment, digital asset trading, circulation, and exchange, etc. Through the reduction of mining costs, Nebula Plan has built a new mode of mining which makes the cost of mining lower.
Compared to other cloud mining platforms, Nebula Plan has the following advantages:
1. Nebula Plan is planning to build a 450 MW substation with strong electricity power source to support the simultaneous operation of 300,000 machines. The low cost of electricity for mining at Nebula Plan will reduce the overall cost of mining.
2. Strong support from local government. The construction of a mining farm and the deployment of mining machines created a huge demand for land. At present, Nebula Plan has been approved and supported by the local governments of Georgia and the Middle East. It has not only obtained the most preferential tariffs on electricity but also obtained the power supply of dual line network.
3. Professional mining maintenance team. In addition to the full support of the local government, Nebula Plan has set up a professional maintenance team to provide 24-hour maintenance on mining machines.
4. Intelligent cloud computing solutions. Nebula Plan will not only offer cloud computing contracts to customers but also establish a trading market for cloud computing contracts to enable customers to choose contracts more freely.
5. Support the mining of multiple types of cryptocurrencies. According to different customer needs, Nebula Plan not only provides mainstream bitcoin mining services but also supports the mining for other competing currencies. Nebula Plan will continuously increase the cryptocurrency’s type for customers to mine, and customers can flexibly select mining cryptocurrencies according to market conditions to maximize their own profits.
After the fluctuation of the Bitcoin price, the miners who are still insisting on mining must be the strong believers of the blockchain. However, in any case, the opportunities left for investors are not much. From the perspective of Bitcoin itself, the original Bitcoin founder, Satoshi Nakamoto, set a total supply of 21 million pieces of bitcoin. So far, 17 million pieces have been dug, leaving only 4 million bitcoins — Therefore, Nebula Plan is perhaps the last chance for investors to gain something from coin mining.