Bitcoin is currently a hot issue in the market. On the social network as well as on the newspapers everywhere also see the fluctuations in Bitcoin. The State Bank has previously warned of the risk of Bitcoin virtual money bubble flaring. Many Chinese importers of low quality excavators can suffer heavy losses. And these cash machines are in danger of becoming scrap iron. So if you are thinking about entering Bitcoin, you should know about Bitcoin before buying.
What is bitcoin?
Bitcoin Digging or Virtual Digging is a form of using PCs with high VGA configurations, or specialized bitcoin diggers running digging software. These software utilizes CPU and GPU processing power to run extremely complex algorithms and then share the solution for the entire network. Although algorithms are difficult to find, it is easy to check for true / false results and for every correct result, “diggers” will get the Bitcoin or Virtual Money numbers that match their efforts.
Digging Bitcoin is done by an application installed on a computer, which must now be configured specifically for Bitcoin exploitation. Specialized Bitcoin tractors must solve particularly complex cryptographic problems.
Money diggers are at risk of being crushed
On the market today, the price of a machine Bitcoin digging about 60 – 70 million; Even higher, not to mention the cost of software procurement and the hire of “workers” digging money.
But the ability to process data is very low, consumes a lot of energy; The average life expectancy of most diggers is only 2-3 months; then have to re-purchase the whole. If not new; The speed of processing is not high, the ability to dig Bitcoin is very low.
An investor who bought a Bitcoin digger for 90 million dong said that the difficulty of the dong is high; He switched to ETH (the market capitalization behind Bitcoin). 12 months after digging 8.2 ETH. If calculating ETH is $ 290 (calculated on the price of 10.9.2017) the amount collected about 54.1 million, but the monthly electricity costs 2 million, equivalent to 24 million per year; the real money is only 30 million. Do not know 2 years whether to get the funds or not because of the additional costs such as broken or upgraded machine continuously.
Not only that, many businesses import a series of computers to process decoded data to solve the Bitcoin algorithm, which is embarrassing for customs authorities. Because these types of computers are not on the list of prohibited imports; Bitcoin is a currency not yet recognized by Vietnamese law.
As China tightens its management; Therefore, the price of Bitcoin diggers can be reduced. Previously, the situation of enterprises spent huge amounts of money to import massively; Bitcoin diggers and some other virtual currency, but then sold crushed because of a serious loss.
Big risk from bitcoin digging
Not only the risk of buying the machine, the risk of investing in virtual currency is also great. According to statistical data, from the price of about $ 13 in 2013; Bitcoin prices are now above $ 4,000 and virtual currency players are expected; Bitcoin prices can be as high as $ 10,000.
Bitcoin prices may soar to tens of percent; But it can also happen suddenly. And no one can anticipate the event that can happen when many countries have not admitted the virtual currency. That is a very big risk for Bitcoin players.
Since the State Bank has a message not to see Bitcoin or other digital money is not a legal means of payment. While the purpose of the machine is digging digital money; That also means the money is issued. In addition, it consumes electricity at high levels; Affecting the environment, the authorities may ban these types of machines.
