Bitcoin 我的掘礦記事報告 二 / My Mining Journal - 2

English Version

This time, I will talked about the magical moment in my 1st 3 weeks of Bitcoin Mining.

In Journal 1, I talk about my projection issues – in fact it is not that bad. Because of some new external influences to the Bitcoin network, my progress was actually better than expected.

Bitcoin Price Boom

Bitcoin price surged to $3300 immediately after the 1st August. At that time, the media covered a lot about Bitcoin, be it bullish or bearish. The results are obvious – more people talked about Bitcoin, looked at Bitcoin, researched Bitcoin and invested in Bitcoin. At that time, Bitcoin was up 300% since 2017, 300%!! I look back and feel myself brave to buy Bitcoin mining contract at that time. The 1st time I bought Bitcoin was in Spring when price was $1800. Now, the highest price is already $5860. I am actually happy I guessed it right.

The contract price of my cloud mining was $21.95 for 100GH/s, raised from $17 in the previous 2 months at that time. My cloud mining service increases their price when Bitcoin price increases. Now, the contract price increased to $34, and it will expire in 36 months. My price is great compare with the current one, because I have my contract without expiry, and is 55% lower than the $34 they charge now.

Now, $34 for contract, why I keep mention this? Right, 2 months ago, I had my price $21.95 and looked back the $17 contract, my $21.95 is expensive. Look back from this point, $21.95 was a very good deal.

I am not pushing you to buy these contract, I just would like to say the history repeated in this 4 months. About if it makes sense or not to buy them now, I will just leave it for next post because there is more info related in the next post.

Maintenance fee in Bitcoin decreases

Just as expected, Bitcoin price increased lead to Maintenance in Bitcoin decreased. The amount for US dollar does not change, but it is irrelevant to me because my goal has been on how much Bitcoin I can accumulate.

My 1st day progress was as follow:

After 6 days:

The Maintenance decreased by 21% because of Bitcoin price surged. You can see the price of Bitcoin is a very important factor that affect the profitability on cloud mining. If I own a miner and mine Bitcoin myself, the electricity will be paid month end and I would be more flexible, you know, I do not need to sell my Bitcoin every day for the bill.

The Bitcoin Cash (BCH) attack

If you have read my Journal 1, you should remember the mined Bitcoin should decrease gradually. Why the data I am showing in this story is different? The mined Bitcoin increases!

I was very happy at that time. I am still feeling blessed now.

Let’s see the data.

Look. 18 days, the mined amount increased 0.00063610, a 20% increase. Together with price surges that made the maintenance reduced, the net income I got was 39% more. Why?

Bitcoin Cash is a hard fork altcoin that needs the same ASIC machine to mine Bitcoin. The processing power in the network (hashrate) of the original Bitcoin network greatly reduced. This attack was most severe between 17 AUG and 27 AUG. In my plot, you can see at the right the pink arrow is showing this change in hashrate in the original Bitcoin network.

Why my mined Bitcoin increased? Because the hashrate decrease, there are fewer participants to fight for the block rewards and therefore my cloud mining service helped me to mined more Bitcoin, as show in the right in blue arrow, inversely matching the pink arrow at the right.

This means, for whatever incidence that make the Bitcoin Hashrate decreases, _cloud mining income would increase

Well, it is too bad that my gain during the Bitcoin Cash attacks are offset by my Monero story…..

So now, you think it is good to get cloud mining? Hold on, don’t get into it. I will tell you more in my next story. Stay tuned.