What is Shared Mining Machine (Is Shared Mining Industry a Pyramid Scheme)?

What is a shared mining machine? What is a shared mining machine?

One thing to consider when mining Bitcoin is the power resources. If there is enough water to support miners in mining blocks, then idle power and mining pools can be used to provide them with services. And when the cost of shutting down mining machines is high, costs can be lowered to very low or even zero. However, with the increasing popularity of blockchain technology, network efficiency, security, and effectiveness will greatly improve. This makes the development of the sharing economy easier. Therefore, for users, the sharing economy is also a better choice rather than a fixed service.

Currently, there are mainly two sharing models in the market.

One is borrowing profit from mining farms, and the other is gaining income from individuals. The advantage of shared mining machines is that they allow miners to participate in mining in a safer and more stable manner. And due to the high threshold for mining, it is not suitable for ordinary retail investors to make small investments (just buying coins) or directly purchasing mining equipment. Of course, this mechanism also brings risks because you cannot effectively manage the computing power. But if you want to share your computing power with others and earn substantial returns, you may suffer heavy losses.

Is Shared Mining Industry a Pyramid Scheme?

Recently, there have been media reports on whether shared mining industry is a pyramid scheme. The reports state that “everyone has the right to mine”.

According to official information disclosure, on November 16, 2019, the Beijing Zhongguancun Blockchain Industrial Alliance announced that “shared mining” (referred to as “shared mining”) was jointly initiated by China Industrial and Commercial Bank, China Merchants Bureau, Ant Group’s subsidiary Beijing Unionpay Business Co., Ltd., and other state-owned enterprises. This news immediately sparked discussions in the cryptocurrency community. “Is shared mining a scam or a pyramid scheme?” related questions have been widely discussed. (Wu Shuo Blockchain)