Revealed! This is how profitable miners choose mines!

The mining process can be simply summarized as follows: buy a machine with a suitable price-performance ratio, place it in a stable mining farm, bind the computing power to a mining pool with stable income and reasonable fees, and finally receive the coins obtained from the mining pool into your own wallet.

During this process, we found that if mining is to make stable profits, choosing a mining farm is the most important thing. The reason is very simple. You just need to spend money to buy a mining machine. If you buy a new machine of a brand, there will generally not be any big problems. You can choose a mining pool, a large one, or a cooperative one that you trust. You don’t need to spend much effort.

But the starting point of a mine is people, and it uses the country’s energy - electricity, so it is not that simple!

Today we will talk about how to choose a good mine.

First of all, we need to define what makes a good mining farm. As veterans in the mining industry, our company and its partners have built six mining farms with a total of hundreds of thousands of machines. We have always believed that the values ​​of a good mining farm should be ranked as follows:

First, mining machine safety;

Second, the power supply is stable;

Third, electricity prices are relatively low.

Why is this so? First of all, let’s talk about safety. Miners spend money to buy old hens (mining machines) in the hope that they will lay eggs (BTC) and sell them to make money. If the mining farm (chicken coop) is not safe and the old hens are lost, sick, or die, how can they make money?

Old miners are well aware of the importance of stability. Frequent power outages will definitely affect profits. In fact, the electricity bill is higher, and the life of the machine is also directly affected.

Let's do a simple calculation: based on 100 70T Shemma M20s with a power consumption of 3.4, placed in two different mining farms, one with an electricity price of 0.35, but with an average power outage of three days per month, and the other with an electricity price of 0.38, but with stable operation and basically no power outages. The coin price is 70,000 yuan, which means an income of 1.15 yuan per ton per day, and a month is 30 days.

The monthly gross income of this mining farm with 100 machines and an electricity price of 0.35 is 70×1.15×27×100=217,350 yuan.

The electricity fee is 3.4×24×27×0.35×100=77112 yuan,

Profit 217350-77112=140238 yuan.

If the same machine is put into a mining farm with an electricity price of 0.38 and no power outages, the monthly gross income is 70×1.15×30×100=241,500 yuan.

The electricity fee is 3.4×24×30×0.38×100=85680 yuan,

Profit 241500-85680=155820 yuan.

The profit difference is 155820-140238=15582 yuan, which is equivalent to paying 15582 yuan more in electricity bills per month in the mine where the electricity price seems to be 0.35.

Converted to per kWh, it is equivalent to paying (77112+15582)÷100÷27÷24÷3.4＝0.42 yuan for electricity! This is quite scary, but most people have never calculated this!

The electricity price is actually a misunderstanding of many miners, who believe that the lower the electricity price, the better. In fact, this is not the case. Electricity is a basic industry that has existed for many years and has its own electricity price standards. It will not change because of who opens a mine. Secondly, mines consume a lot of electricity, so they must deal with large power generation companies or State Grid. In this way, electricity prices have corresponding standards due to the different nature of power supply, so there is no absolutely low electricity price.

This is why the values ​​of a mine must be based on these three points. However, safety and stability cannot be achieved by patting one’s chest. How can safety be guaranteed? What is behind stability? What is a reasonable electricity price?

Simply put, the bigger the mine, the safer and more stable it is. The reason is simple: people who invest in mines are also considering their investment risks. Large mines generally have a full set of approval procedures, and they cannot avoid interacting with the government and paying profits and taxes, which to a certain extent avoids some policy risks.

On the other hand, the power suppliers of large mining farms are also strong and have stable power supply, especially for mining farms that use power from the State Grid or Southern Grid, where the power is more stable than ordinary hydropower or thermal power.

In addition, the construction standards, materials, site selection environment and other aspects will be better than those of mining farms. While having good heat dissipation, it can avoid some potential natural disasters and electricity safety issues.

But the actual situation is far more complicated than this. In the past two years, there have been many examples of problems in large mining farms, and not all small mining farms (less than 10,000 units) are unstable. So what are the real factors behind safety and stability?

In fact, the safety and stability of the mine is specifically the stability of the following three points:

1. The power supplier behind the mine is strong, and the relationship between the mine and the power supplier is properly handled, and the local government policies are properly handled, resulting in stable power supply;

2. Good quality materials and standard High and reasonable design, bringing stable operation;

3. The mining farm has a professional and responsible operation and maintenance team, which ensures stable computing power of the mining machines.

These three points are indispensable, among which the first one, stable power supply, is the most important. If there is a problem with this point, the foundation will be shaky. Then how do we judge whether the electricity and the government are stable?

We can make a simple judgment based on the nature of electricity. We divide electricity into three categories. The first category is small or single hydropower stations or thermal power stations, where the electricity price is cheap, basically within 25 cents.

The second category is large hydropower groups or thermal power groups, which have multiple large power stations and medium electricity prices, most of which pay around 27 to 30 cents for electricity. The third category is supplied by the State Grid or the Southern Grid, and basically the electricity price is above 30 cents, around 33 cents.

For the first category, if the mine is powered by a small hydropower station or a thermal power station, and the mine and the power station only have a business relationship, then this type of mine is difficult to stabilize. The amount of water and sand discharge will affect the amount of electricity. Moreover, this type of power station is generally located downstream, and there are many natural disasters and force majeure hidden dangers. The main point is that small power stations have limited interaction with the government and are greatly affected by local government and power grid policies.

For the second category, large hydropower and thermal power groups, the quality and stability of electricity are acceptable, but the relationship with the power supplier is more complicated. This is because if the mine owner cannot handle the senior people of the group company, then the mine becomes a slave to electricity and is powerless in the face of certain situations, such as competition among peers for the same electricity resources, policy changes, or problems with transformers or lines, and the group company's processing speed.

Therefore, for this type of electricity, it would be best to treat the power supplier as a shareholder, and a shareholder who contributes capital, so that they can not only earn the difference in electricity bills, but also make money from the new industry's mining farms together, and face problems together. At present, the mining farms under our company are at least jointly built with power suppliers contributing money in equal proportions, so long-term stability can be guaranteed.

For the third category, we must think deeply about two points. First, electricity belongs to the country, the power grid is political, and the people's electricity is for the people, so electricity must be used in compliance with regulations. Second, a mine, although insiders call it that, is essentially a business, so we must hold ourselves to the standards and rules of a business, rather than looking at those of our peers. We must interact with local governments in terms of political achievements, taxation, and employment, and maintain good relations with them. It is best to work together to find ways to facilitate the implementation of the project.

Mine construction, including power facilities and factory building construction, including heat dissipation, dust prevention, fire protection, etc., focuses on the safety of heat dissipation and electricity use. It is best to inspect it in person and communicate with the mine owner to understand his level of cognition.

In fact, in our opinion, building a mine requires a one-time investment. In a word, we should investigate and understand from multiple angles, find people who are good at building mines in the industry, leave professional matters to professionals, respect them, and give them corresponding treatment, then there will be no problem. Don't figure it out on your own, otherwise you will pay more tuition.

When it comes to mine operation and maintenance, we must see whether the other party uses the mining machine's computing power to assess the team. The core issue that a good operation and maintenance team solves is that in addition to the stable operation of the machine, the computing power must meet the standards.

Therefore, as a miner, you must choose a mine based on the premise of safety, stability, and relatively low electricity prices (the order cannot be wrong), and you must understand the key points behind these to avoid mining pitfalls, protect your property, and obtain better returns.

The above is today's sharing content. Welcome everyone to follow the official account. If you have more questions, you can communicate with me in the background. I hope that the followers of the mining professor can avoid pitfalls and make more money in the mining process.