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Cyber Bitcoin
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Make money is one of odd thing, some one can earn full to his neck, while others are struggle to put his nose above the water. All business is whether lost or win, which is not surprising. However, in the field of bitcoin mining, this is very obviously.

Dave Carlson, the owner of north America's largest bitcoin mine , make 8 millions dollar one month at the peak.[1]  But here is someone, in our forum, told you personly that he had not get back his 1/4 invest even after his seveal months hard work.[2] Bitcoin celebrity Li Xiaolai also published blog "why mice don't dig? ",which said, for the vast majority of freshman, to dig for bitcoin, is a high risk business just like you jump into a pit

So many anecdote after anecdote, what is the ture? In my point of view, that I think both of them are right. Since you should know, not only in bitcoin, but also in everywhere, it is very hard for a freshman to make money, especially in such a high tech aera like cyber money. Not like "a mice don't dig mining", I would say a mice should not doing anything! Why? If you wish to success anything, you must not be a experimental mice.

In addition, bitcoin currency still has policy risk. Its mining industry has risk of the lack of supervision, and has risk of existence of various pit,  even fraud. All of these factors will impact bitcoin miners income.

However, despite these factors, miner machin sales are still considerable, for example: Ajay T miner, in March,2014,  had sold the miner which total calculation ability reachs 7.5P. That is to say, had sold 7500 1T miner. If according to the average of each machine is 20k yuan, total sales reached 150 millions yuan. [4] Could you say all of people who buy machine does not make money? ofcourse not. Market behavior since ancient times, could not escape from this rule: if one business do not make money, even it is how surface vain, must inevitable collapse; and in turn, profitable business, although it has high risk or even it is dirty, is bound to have people rush into danger.

Try to make money by mining, we first need to master a lot of knowledge, and need certain actual experience. I began to understand the currency from January this year. However, after 3 months. I haven't bought any one machine ( LVL gave me two USB miner for test ). Why? Because through my own research, now (2014 April) is not a good time for buy the machines.

However, in these 3 months, I had 2 months as the moderator of freshman column of Dreamcolor Web site, which is the largest forum in the China about bitcoin. So here by I have, learned a lot of bitcoin mining machine related knowledge, got a lot of old miners'  experiences and opinions. Therefore, this series of articles is my study summary during this time. I'm gald to share it with those who did not take the miners but try to walk into the game. I hope it can help the new coming to avoid pit which the old miners have lost in it. Of course, I'm welcome to have criticism words from the old miners too, welcome opinions and suggestions. Let work together to promote the healthy development of bitcoin mining industry.

To be a qualified miner, is not as simple as you thought: buy machine, plug power, lay on bed for money. The miner is a technology live. In this series of articles, I will introduce how become a miner, what knowledge and experience need to be a master . The series preliminary design to write in 8 articles, which content list as follows:

(1) Safety first: The safe use of bitcoins wallet

You may use the bitcoin wallets, but you may don't know how to safely use the bitcoin wallets. During my time as moderator of the freshman column, Dreamcolor bitcoin web site, I often be asked for help, wallet is lost, bitcoin is stolen, or password is forgotten, etc.. But I would like say, base on properties of bitcoin, no one others but you, must take all responsibility for your own bitcoins. Only you can take charge of responsible for your own wallet. So, please learn how to safe your bitcoin wallets. This is the premise of everything. Otherwise, please stay away from the bitcoin currency, not to say try to become a miner. On the safe use of the currency wallet, there are many ways. But you'll find out more safe, more trouble. Therefore, the focus of this article is try to find a balance between the security and easy.

(2) The value of the investment:  Understanding bitcoin.

Even you have learned how to use bitcoin wallet safy, you must need to practice transfer a few times. Why, let us experience the currency value. Only by actual operation, one can realize its value. Even you don't believe, you also must understand, why such a lot of people are so firmly support the currency. There are so many articles discuss the value of bitcoin in the internet. As a mining machine operator, you could not to believe the currency value, but you must to believe that the currency has its price, it belongs your hard work. So, what the miners need to understand is, whether bitcoin is really has some special properties, which make these people have so strong faithful.

(3) the cost and income: understand the difficulty of mining, mining strength and power consumption.

In case of your believe of the bitcoin currency's price, you have the reason to invest it. Since it is investment, it is necessary to calculate costs and benefits. To calculate costs and benefits, you need first to understand bitcoin mining difficulty and stress, and through the difficulty and stress, calculate your future yield, or outcome. In addition, investing in bitcoins mining, electricity costs must also be taken into the account, because the machine power consumption determines its service life.

(4) Be careful trap: mining and miner industry has pit

If you already know how to calculate costs and benefits, then you may try to start to be eager for a fight, but please don't hurry. Prior to this, you must also know, mining industry has not formed the clear industry standard. There are still have a lot of pit and lot of scam waiting for you. Of course all these lose I have not experienced, but I can make a summary from these sad story of some old miners.

(5) The accumulation of experience: Pay the lowest tuition

In order to make things well, you should always need pay off something, more or less, that is tuition. The mining are no exception. The problem is, some fees are too high. To reduce the tuition, the best way is that, maybe you can first buy a cheaper machine to try. This machine may not be cost-effective, maybe not go with its cost back. But even if lost total, the low cost will make you feel fewer distressed. And through the maintenance of it, run it, you will be able to know mining course, its noise, its volume, its software and hardware settings, power consumption, mining pool selection and so so on details. You will have a more profound understanding. It will accumulate valuable experience for you in your future large-scale deployment of mining.

(6) Concerned about the market: Look for best buy point.

Even I finish all the preparatory work, even I think that I have a deeper understanding of the bitcoin mining and accumulated some experience, I still did not buy any mining machine, on the contrary, now I buy the currency. Why, the reason is very simple, when the bitcoin's price falls, a rational decision is to buy bitcoins; when its price rises, a rational decision is to buy its machine. Li Xiaolai had said that even expected currency prices go up, the more reason way is still to buy currency directly, cost-effective [3]. I have different views, I'm going explain why in detail in this paper.

(7) The final lesson: shopped around and knowing your advantages

Recently the bitcoin marketing performance, of course, is not well for a large scale of investment into its machines. However, this does not hinder our attention related to know information about bitcoin miner maker. In this duration of waiting for the best opportunity, we can spend a little more time, to understand the machine parameters and to know how its maker's oral reputation. So, you see, every interview I have ,I will ask miner maker the same question, what did you do before? It's very important. After all, as an investor, we certainly don't want to deal with whom is not reliable. In addition, we also need understand if you have advantages relative to other miners: such as free space, free electricity, to master the core technology etc..

(8) To buy the machine: you are in a race against time

Oh,this is just a article title, but I'm going complete it after I buy my mining machine.  So now even me, I don't know what I will write. Maybe I will never buy any machine, and so I will never write it. However, I believe that the bitcoin price maybe goto bubbled again.

Reference material.

[1] "$8 millions / month" North American bitcoin field
http://www.cybtc.com/article-689-1.html
[2] bitcoin mining, huge trap - a diggers lost experience
http://www.cybtc.com/thread-7183-1-1.html
[3] Why a mice don't dig?
http://xiaolai.li/why-bitcoin-beginners-should-not-try-mining/
[4] Dreamcolor interview with Zhai Wenjie : Litecoin, 75M computing machine, will ship in May.
http://www.cybtc.com/article-802-1.html

Translated from: http://www.cybtc.com/article-818-1.html

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