Why don’t mining machine factories mine themselves (Why can mining machines make money)?

Why don’t mining machine factories mine themselves? Editor’s note: This article is from BlockBeats (ID: blockbeats), authorized to be reproduced by Planet Daily.

Why don’t they produce their own bitcoin mining? According to the report of “Wall Street News”, from August 2017 to early 2018, Bitmain, Canaan Creative, and Ebang International, the two largest domestic bitcoin mining machine manufacturers in China, announced a cooperation agreement. They will use their own chips and ASIC devices for cryptocurrency mining. Afterwards, Shennong M30S also issued a statement, stating that they will carry out independent research and development on their chips and related hardware in order to provide customers with services to purchase more bitcoin and other digital assets at lower prices. “We have moved our first batch of Ant miners from China to South Korea.” an insider said, “I believe this business in China can continue to develop. So we are currently making a suitable choice. What we want to know is, if a company really needs its own computing power to support its operations, then what?” Another anonymous person said, “Because you cannot control the quantity and cost of your computing power, but you can control the energy consumption of the entire system. This is what we call “self-hosting”.”

In fact, for most companies, this process is not easy but very difficult. For example, many companies have designed a system specifically to improve their efficiency or even profitability. However, when someone discovers a vulnerability in a software, they will go and modify the code to increase the difficulty and delete or redeploy the server, which may cause some problems… For example, those algorithms that have not received enough proof that they are indeed problematic, and this technology has not yet been widely used in any field, so it may be a challenge. But on the other hand, do mining machine manufacturers not want to take responsibility?

In addition to their own problems, due to the fact that many people believe that they have participated in some complex technical activities, especially the communication and interaction between people in different industries, it has caused a recession in certain industries. For example, large Internet giants like Google have begun to use their market dominance to earn money through token sales or directly through other services, which has caused concerns about their trustworthiness.

Of course, many people will ask, why can’t miners accept the management work of mining farm operators, especially how to choose when facing new things?

The answer is yes! After all, although some projects are just testing the waters of the blockchain industry, there are also many teams actively exploring new business models, such as cloud computing, big data, artificial intelligence, and so on. But no matter how well any industry develops, as long as it can withstand the impact of network congestion and still obtain stable returns, then they are the most suitable products for long-term survival.

Why can mining machines make money?

According to Cryptocoin News, the process of mining bitcoin is mainly divided into two parts: ASIC and hardware.

In the years before the halving of bitcoin (starting from 2011), as digital currencies developed, the price of mining machines has been rising. But in March of this year, it fell below the $20,000 mark, causing many investors to have doubts about the value of mining machines and expect their prices to decline or even go to zero. However, when the price of BTC rose to over $10,000, such claims became a bubble. But as bitcoin continues to grow, more and more institutions and individuals are joining in to invest in this industry and gain lucrative investment opportunities.