What are you digging?

First of all, mining in Baidu means that miners calculate a certain amount of work through specific equipment and calculate the hash value of the blocks that meet the requi

First of all, mining in Baidu means that miners calculate a certain amount of work through specific equipment and calculate the hash value of the blocks that meet the requirements, so as to win the right to keep accounts and get corresponding rewards. It can also be seen as the process of adding new transactions to the ledger that records digital currency's past transactions.

The limitation of the above definition is that it does not clearly point out what is excavated by mining. What was dug out by mining was a block. Because these blocks are composed of digital symbols, it can be said that only a series of numbers are dug up. However, these figures represent the rewards or benefits that miners can get, so what they dig out can be said to be benefits. The block reward fluctuates with the fluctuation of the currency price, and the biggest factor affecting the currency price lies in the audience size. At the beginning of the birth of bitcoin, any computer could dig up hundreds of bitcoins every month. Because nobody cares, miners need tens of thousands of bitcoins to buy a pizza. However, with the increase in the number of people accepting bitcoin, the price of bitcoin has turned tens of thousands of times! So, in the end, we can say: What we are digging is the expectation of the future society for a certain kind of digital currency.

Miners refer to a group of people who focus on "mining", which can refer to a person or a group. With the continuous progress of technology, miners are no longer limited to mining with hardware equipment, but can dig up different numbers of digital currency in some projects by investing time, energy and even brain power. Since it is the expectation of the future society for a certain digital currency, the income is full of uncertainty. In order to better distinguish, the author distinguishes between "hardware" mining and "software" mining.

First, "hardware" mining

Because this mining needs to invest a lot of hardware and equipment, it is basically the people who have been in contact with it in the early stage who have the greatest profit, have high requirements and gradually become over-specialized. At present, it is difficult for a single miner to survive in the arms race of miners in terms of computing power, hardware and iteration speed, so most miners will choose to cooperate and make profits through the mine pool built by * * * *.

Because of the expectation of mining, the price fluctuation is particularly fierce, and hardware miners need real money to invest in equipment, maintenance, iteration, site leasing, labor, utilities and so on. So this kind of miners are under great pressure, and they may lose their money if they are not careful. There are many factors that affect the understanding of * * * *. In order to achieve stability, sustainability and maximum benefits, hardware miners usually choose: the bull market sells its own currency, replaces it with legal tender or other stable currency, and waits quietly for the bear market; In a bear market, collect as much money as possible and use the accumulated legal tender or stable currency to "warm the winter".

As a hardware miner, I look forward to a bull market, but I don't refuse the arrival of a bear market. In the bull market, a large number of miners will also increase the difficulty of mining, and the reward will drop sharply; In a bear market, the price of money is halved, but the reward of mining will increase because of the decrease of miners. Only by alternating bulls and bears can we maximize the benefits. The alternation of bulls and bears, even if it is a four-year cycle, requires the unbearable persistence of ordinary people.

Second, "software" miners

This kind of miners refers to the behavior of digging by investing money, time, energy, brain and other non-hardware

With the development of science and technology, POW mechanism can no longer meet people's needs. At present, there are more than 30 * * recognition algorithms that have been widely used in the market. POS, DPOS, POI, POB, POA, etc. It can be regarded as a supplement to the dynamic mechanism. In this mining activity, miners usually need to buy and hold a certain amount of digital currency, and gain profits through the appreciation of digital currency. In order to maximize the benefits, this holding time is usually in years, and the alternation of bulls and bears in the money market is a big cycle, and impatient miners are doomed to be eliminated.

There is another kind of miners, which Jubaoge would like to focus on: the miners who roll candy and bonus hunter at the beginning of each project without paying money (later, Token is used for convenience of explanation). Of course, the creation on UGC platform also belongs to this kind of miners.

At present, digital currency is divided into mainstream currency and cottage currency, as well as world currency and competitive currency. At present, the Token we have obtained from candy and bonus hunter are basically competitive coins: the digital currency issued by the project party is used for the financing and promotion of project development (not to make up for the lack of technology in digital currency). This kind of digital currency will first be managed by a centralized team; Secondly, it will go through a growing process from small to large to strong; Finally, it is the growth result of this project that affects the final value of money in the hands of users. In this kind of mining, miners have paid time, energy and brain power. , and the tokens obtained can be regarded as equity or equity certificates with dividend nature. Then, what determines the income of miners is whether this project can survive and is finally accepted by more and more groups. If it can grow into a unicorn in the blockchain industry, the benefits to miners will be enough to realize wealth freedom.

However, if there is competition, there will be survival of the fittest, and a large number of projects are doomed to die among competitors, so the token in the hands of miners is just a number, which will not produce any value. Therefore, miners usually face the choice of selling their tokens as soon as possible and replacing them with mainstream coins such as BTC, or holding them patiently, waiting for these tokens to achieve shocking reversal like ripple coins. The investment of five dollars and the income of hundreds of millions are not enough to be described by daydreaming, but the currency circle is a place to create myths, so the practice of Jubaoge is Tun! After all, there is no point in selling ten tokens for eight. Jubaoge is more willing to grow up with the project, and at the same time cast a wide net, take as many project tokens and wallets as possible, and wait quietly for the bonus brought by the project growth.

Third, the conclusion

It can be concluded from the article that whether using "hardware" or "software", what is excavated is the expectation of future income: the more people are recognized in the future, the better the income brought by this coin; If no one is in charge in the future, this coin may be zero and the miners' income will be negative. But expectations usually take a long time to verify, including the opportunities that follow, which are often hidden in the initial dullness. Blockchain will inevitably bring subversive social changes, which is the most basic belief of miners who join the currency circle. Therefore, we might as well give up the trivial things in front of us, patiently hold the digital currency, and take the cycle of bull and bear replacement as the operating frequency, so as to get the maximum benefit.