Where do Miners Usually Trade (Are Miners Rich)?

Where do miners usually trade? What exchanges do miners usually use?

1. Huobi for mining BTC (using BCH as an example): This exchange primarily supports three major mainstream coins, including HT and OKB.

2. OKEx: Bitcoin’s price fluctuates greatly, and the transaction fees for contract trading are high.

3. “One-click issuance of tokens” is one of the most popular mining methods in China. “One-click issuance of tokens” and “one-click selling of tokens” (using EOS to purchase ERC20 tokens) are currently circulating tokens such as ETH, USDT, BTT, ZEC, and other cryptocurrencies. The prices of these tokens fluctuate greatly, but since there is no product that can accurately reflect the actual situation, it is not possible to determine the specific return rate. For example, if a project issues its own token, the platform will reward them based on the number of blocks generated by this project.

4. In “Dual-pool mining,” most coins other than BTC and ETH have already been packaged into blocks to be mined using the bitcoins mined. These coins can be directly exchanged for BNB or OKB through two pools without any operational procedures.

5. The number of coins mined in 1pool does not exceed 10 million. Based on the current price of 11,500 yuan, 1 million USD is a very large amount of funds.

6. On average, 3pool miners need to consume about 500,000 computing power per day to achieve the goal of mining, which means that only about 2 million BNB can be earned per day. The average daily income of 1pool is over 5 million RMB, which is approximately valued at 2,000 to 4,000 yuan based on the current market price of 11,600 yuan. If the timeline is extended, the entire process may become more complicated.

7. 5pool has also created a liquidity staking mining program, which includes some leveraged tokens, but it has not released a specific amount. It is just to obtain certain returns. Therefore, for many investors, the entry barrier is not too low, as everyone can make money as long as they invest, and there will be considerable profits. However, many people also believe that it is better to mine fewer coins.

Are Miners Rich?

Editor’s Note: This article is from ChainNews (ID: chainnewscom), written by Wang Jiajian, and authorized by Star Daily to publish.

According to Cointelegraph, based on the data from the cryptocurrency trading platform BitMEX, miners have earned nearly 400 million US dollars in the past 24 hours. These profits mainly come from mining new coins, which may have a negative impact on the price of Bitcoin.

Since January 2018 to early 2019, mining companies have been issuing and selling stocks and other assets to investors for profits. At the end of 2019 and the end of 2020, as market volatility increased and BTC prices declined, some people have sold their company stocks to obtain partial returns. However, due to the impact of mining companies’ reluctance to bear losses and subsequent stock price declines, many mining factories had to shut down operations.

Since 2013, a large number of orders have been delayed until the first quarter of this year and only returned to normal operation at the end of September last year. In the middle and late stages of 2020, institutional users such as exchanges have transferred their businesses overseas and hoped to attract miners to the field by purchasing more services outside the exchange. Additionally, miners need to pay high fees for mining. However, currently, most miners don’t care about how their clients handle this issue but are more concerned about whether miners can obtain corresponding fees or use other means to obtain service fees.

So, for those who want to invest in cryptocurrencies, do they have money? Why haven’t they received corresponding compensation? Because if miners lose money and lose all their jobs and profits, it will have a negative impact on the equity interests of mining companies’ shareholders and may face huge risks. The financial situation of mining companies is similar to that of traditional banks. It is also a highly centralized industry with a lack of regulatory transparency. Therefore, many companies have taken measures to reduce costs to cope with certain situations, resulting in the inability to afford high maintenance costs and expenses. However, even so, there is still one problem—the issue of hash power distribution. When you have devices with over 51% of the total hash power, the “electricity” supply will change.

Of course, miners also have their own economic incentive plans. Besides mining ETH, what benefits can miners bring to the network? How many rewards can miners get? Miners can also use the tokens they mine as voting rights, and anything related to the decision-making process in network governance will be automatically accepted.

According to data from blockchain security company Certik, currently, approximately 70% of wallet addresses are active, and at least 1,000 new tokens appear every day.

It is worth noting that although most node operators have not revealed who controls the most blocks,