Net mining revenue and its relation to mining revenue conversion,

08/16/2023 15:49 • Tech Ticker • 85 views

Net mining revenue and its relation – what is it related to? We know that the value of Bitcoin mainly depends on the number of transactions on the network, block size, and its hash rate. According to CoinMarketCap’s data statistics, the hash rate per block of Bitcoin averaged 6.3% in 2017, with the lowest value in 2019 being 10.1%. This means that despite the current low cryptocurrency prices, it will still rise with time.

However, from a technical analysis perspective, this growth is due to increased Bitcoin price volatility. Although mining difficulty has increased by over 30% in recent months, overall, the results are still to be observed, as most people encounter issues during the mining process: Can some new features be added to the system without any new software? Without doing so, significant losses may occur. Therefore, when people start considering how to increase computing power or reduce risk, the above situation arises – of course, traditional investment models can also be used to predict market conditions. (Bitcoinist)

Conversion of mining revenue

The calculation of mining revenue and conversion income is as follows, based on factors such as electricity cost and power cost, comprehensively analyzed in the table below. The electricity cost is 1 yuan per kilowatt-hour; the consumption of water resources varies by about 50 days per year for Ethereum. Therefore, if the total amount of Bitcoin mined is calculated with the current price (about 2 million coins), the total output will be 60W × 30K = 12.5T. If calculated this way, the current network hash rate has reached 150E/S.

So how can the value of mined coins be estimated? This article mainly compares from the following two aspects:

1) Calculate based on the current market average price: We compare the spot price with the futures price because there is currently not enough capital in the market to buy BTC and ETH futures contracts.

2) By using the P/E ratio weighted investment portfolio index, it can be known what risk it brings to this investment portfolio when a certain underlying asset rises. For example, investors either buy BTC or other digital currencies or hold these coins. Both strategies need to consider whether the short-term market trends are clear. However, it should also be noted that if the future market continues to decline, there may be significant fluctuations. In addition, for some smaller currencies, even extreme market trends may affect their coin price trends. (Note: The fluctuation range of mainstream coins differs, leading to significant price fluctuations in Bitcoins)

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Net mining revenue and its relation to mining revenue conversion,

Conversion of mining revenue

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