The upstream sector of the blockchain industry revolves around mining. Over the past decade, cryptocurrency mining has undergone dramatic transformations. Some miners have struck gold, propelling themselves to career peaks, while others have faced crushing losses and retreated from the field.
The Evolution of Crypto Mining
In the early days, a single person with a laptop could mine Bitcoin effortlessly. Back then, mining costs were minimal—so low that a programmer famously spent 10,000 self-mined Bitcoins on two pizzas. However, the landscape shifted rapidly:
- Hardware Advancements: Mining progressed from CPU-based setups to GPU rigs, then to specialized ASIC miners and large-scale mining farms.
- Rising Barriers: Increased专业化 (professionalization) and capital requirements made mining inaccessible to casual participants.
This decade-long journey has attracted diverse participants, each with unique stories. Below, we share insights from four mining veterans who entered the industry at different stages.
01: Dongchu – Entered in 2015
"Graduated 4 Years Ago, Now a Mining Farm Owner"
Key Takeaways:
- Early Adoption Advantage: Started with a small Bitcoin mining operation while working at an electric utility company.
- Cash Flow Stability: Recognized that mining generates steady income, which later shielded him during market downturns.
- Investment Lessons: Lost profits from 2017’s bull market due to over-diversification into failed projects.
- Current Scale: Manages tens of thousands of ASIC miners, catering exclusively to institutional clients.
"Replicating my path today would be nearly impossible. Mining’s golden era for small players is fading."
02: Ji – Entered in 2016
"Peak Earnings: 120 Antminer S7s Generated $1,000+ Daily"
Key Takeaways:
- Bootstrapped Entry: Learned hardware repair and矿场 (mining farm) management from scratch.
- Market Timing: Capitalized on post-"9/4" 2017 panic by acquiring cheap二手 (used)矿机 (miners), achieving ROI within months.
- Industry Shift: Small-scale mining is now边缘化 (marginalized) without ultra-low electricity costs.
- Advice for Newcomers: Start as a矿场运维 (mining farm technician) to gain hands-on experience.
"Today’s mining giants operate at scales that dwarf individual efforts."
03: Apeng – Entered in 2017
"From GPU Rigs to ASICs: Trial-and-Error Investments"
Key Takeaways:
- Hardware Transition: Began with显卡机 (GPU miners), later upgraded to ASICs.
- Altcoin Pitfalls: Lost heavily on期货 (futures) purchases of D3/B3矿机 optimized for小众币种 (niche coins).
- Cyclical Strategy: "Buy矿机 at cycle troughs—now is not the time."
04: Julian – Entered in 2018
"From Boom to Bust: Learning Market Cycles the Hard Way"
Key Takeaways:
- Early Exit Mistake: Sold BTC pre-"9/4" 2017, missing the historic rally.
- Liquidation Lesson: Lost 70% on Antminer S9 purchases during清算 (liquidation) events.
- Current Approach: Collaborative mining pools for散户 (retail participants).
"Only after surviving a full牛熊 (bull-bear) cycle do you understand mining’s true risks."
05: Conclusion
The Future of Mining: Institutionalization and Policy Shifts
- Industry Maturation: Mining has evolved from wild-west chaos to a professionalized sector dominated by规模化 (scaled) operations.
- Policy Developments: China’s 2019 removal of mining from its "淘汰产业" (obsolete industries) list sparked optimism.
Whether mining remains viable for small players hinges on能源成本 (energy costs) and technological shifts. One truth endures: volatility and innovation will continue defining this space.
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FAQs
Q: Can individuals still profit from mining?
A: Yes, but via pooled resources or cloud mining—solo operations are rarely viable.
Q: What’s the biggest mining mistake?
A: Ignoring market cycles. Buying overpriced hardware at peaks ensures losses.
Q: How do政策 (policies) impact mining?
A: Regulatory shifts (e.g., China’s 2021 crackdown) can abruptly alter profitability地理 (geographies).
Q: Is ASIC mining the only option?
A: For Bitcoin, yes. Some altcoins still allow GPU/CPU mining,但 (but) rewards diminish yearly.
Q: What’s the #1 trait for mining success?
A: Adaptability. The 2020-2021矿机 (miner) shortage proved agility outweighs sheer规模 (scale).