What is Holding Currency Computing Power (Coin Computing Power)?

What is holding currency computing power? The mining profit determines the cost and return rate of your participation in a blockchain network’s computing power. Therefore, in the process of mining, other factors need to be considered. For example, whether your Bitcoin mining profit is low enough. If you have an ordinary computer but don’t run a full node and are unwilling to pay high fees (for example, only earning 5 RMB per day), you can choose to deposit your money into your own mining pool and continue to receive profits.

We know that Ethereum’s mining difficulty is a relatively small project, but it has great flexibility. According to Etherscan data, currently, the average block time per THash/s on the entire network is about 6 seconds. If calculated based on ETH/W, it is estimated that it will take about 7 days to reach this standard. Therefore, for those who want long-term stable profits or more profits, operating at this speed is quite good. (Note: 6 hours can be the maximum production of 1 machine 3 times a day).

From the above figure, it can be seen that the difference between the amount of Ethereum’s holding currency computing power and Bitcoin’s holding currency volume is getting smaller and smaller. Because with the fluctuation of coin price and the change of mining equipment price, mining becomes more difficult, expensive, and risky, which is the most concerned issue for currency holders. So what is holding currency computing power? Holding currency computing power refers to the total amount of cryptocurrency held by a computer with a certain computing power. Based on this number, the current market value of encrypted assets is about one billion US dollars. However, because its value has far exceeded the increase in prices of mainstream cryptocurrencies such as Bitcoin, and due to its own volatility and unpredictability, currency holders cannot fully control these investment products or services, which leads to great uncertainty in their mining behavior and even hacking incidents. Therefore, holding currency computing power is also considered a safer choice. What are the advantages of holding currency computing power?

1. Security

2. Decentralized storage

3. Transaction record storage and processing

4. Transaction data transparency

5. Ensuring the non-disclosure of personal information.

Coin Computing Power

Editor’s Note: This article is from “William’s Talk” (ID: William1913), author: Chen William, authorized reprint of Odaily Planet Daily.

Bitcoin’s hash rate reached its peak in 2017 and then started to decline. However, it has recently rebounded. According to the data from Bytom mining pool, since the beginning of 2019, the average value of BTC computing power has risen from 39.6 TH/s per second on June 13th to a historical high of 109.3 EH/S at the end of August and the beginning of September. According to CoinMetrics data, the price fluctuations in late 2017 and December were also significant. From mid-November 2017 to May 2020, mining difficulty has greatly increased and continued to grow. In the first quarter of 2018, the total network computing power once reached a high of 120 EH/s, which was the highest level since 2016.

With the acceleration of the blockchain industry’s development and the gradual stabilization of digital asset market prices, more and more investors have realized this value and have flocked to the field of digital currency. But in fact, this is not a new problem. In the first half of this year, the trading volume and fund scale of the entire industry have been constantly increasing, to the point that the listing of various tokens on some exchanges has become the focus of attention. Especially the behavior of trading or buying and selling derivatives through these exchanges has made users feel that they are out of reach. At the same time, since digital renminbi is still in the trial stage, the participation threshold for ordinary users is relatively low. Therefore, many people believe that the mining income of digital currencies will decrease a lot. However, many investors believe that Bitcoin’s computing power is a huge advantage. So if we consider Bitcoin’s computing power as an investment, we should consider the following:

First of all, we must remember this question: why don’t we pay attention to whether mining itself can generate enough cash flow to pay for costs? Because most of the time, if you can judge whether a project is profitable by just looking at one or two indicators, such as whether your Bitcoin can really achieve profitability, it can also calculate how much coin you hold. That is, how much “money” you have! If you want to use 1T of money to buy a Bitcoin, how much cost do you need to invest to get a suitable investment price? And you must have a certain cash reserve, which is currently a very high risk. On the other hand, Bitcoin’s market value may exceed that of other financial assets such as gold. In addition, a noticeable point on the Bitcoin network is the number of active addresses and block height.

In conclusion, Bitcoin’s on-chain data is not necessarily related to its actual market demand. But it does reflect a phenomenon, that is, the more active the Bitcoin network, the wider the distribution of its computing power. This is why in the past few weeks, the circulating supply of Bitcoin has decreased a lot. On the other hand, one of the factors on which Bitcoin mining depends is the emergence of Bitcoin as a new factor of production.