Strictly speaking, most people in the virtual coin world are actually losing money, so if we were more rigorous, the title should be “Virtual Coins look so profitable, why don’t those graphics card manufacturers mine them themselves? Yes, the key to the answer is actually in the word “seem”. In addition, there are some reasons, I have summarized, about 2 aspects.
Of course, before answering, first or disclaimer, the world is not non-0 that is 1, I’ve seen the opening of mining farms themselves also mining and speculation of coins, I’ve also seen mining also dumped mining machine, so those graphics card manufacturers (in fact, after thinking about Nvidia and AMD) in the end there is no participation in a little mining, in fact, it is difficult to say, the only thing that can be determined is that personally mining is certainly not part of these The only thing you can be sure of is that in-person mining is certainly not part of these manufacturers’ large-scale strategic deployment. In addition, but also to clarify a point is that not all mining with graphics cards, the general range is not so wide, such as the most famous is BTC, people use ASIC miners, the current mainstream need to use graphics cards to dig the coin is Ether, that is, ETH, Filecoin is also well-known, most of the other are some small coins.
Why do not participate in it, we first analyze the main reason, is just mentioned that “it seems”. In the case of the most bullish video card mining coin, ETH, when the bull market, everyone feels that they are making money because the price of ETH is rising. But have you thought about it, who sets the price of ETH? Is it V God? Definitely not! Is it the exchange? If we don’t consider that the exchange is manipulating the market, it’s not either! Then how is it formed? It is actually formed by the trading behavior of buyers and sellers, commonly known as counterparty trading. To make a simple analogy, there is only one ETH trading event happened in the market today, you bought an ETH of the old king with a price of $4000, then the market price of ETH is 4000 knives, yes, all people look at the knife ETH is 4000 knives.
But is this 4000 knife stable? Of course not, if everyone feels that the price of 4000 knives is good and very profitable, then everyone will sell their ETH at the price of 4000 knives, but think about it, everyone wants to sell, so who will buy it? If there are many people selling and few people buying, there must be people who can’t sell, and if those who can’t sell want to sell how to do? Then the only way to reduce the price, such as hanging a 3900 knife, once there is a 3900 knife deal, the new price of ETH marked is 3900 knife. So you see, the value of ETH is stable without much change in the underlying market, for example, it can be used to pay GAS fees, but the price of ETH changes with the supply and demand in the market. As seen in the example just now, if more people sell and fewer people buy, the price will fall; if more people buy and fewer people sell, the price will rise.
Just as there is a quantum theory called the principle of inaccuracy, commonly translated, is that the observer itself will affect the outcome of the observation. Likewise, for markets like the cryptocurrency world and the stock market where counterparty trading takes place, each participant’s own behavior will have an impact on the market, which in turn affects the transaction price. Join the current stable price is the result of the balance between buyers and sellers, then when you decide to go down, no matter which side you join, you will break this balance, if you are a small retailer, you may have less impact, but if you are a large institution, maybe it will bring about a sea change. Do you think the graphics card manufacturers are small retail investors, or large institutions? The power of mining must be the sellers, because the model of mining is to dig and sell mention, think about a huge sellers to join, the imbalance of power between buyers and sellers, do you think on the price is raised or pulled down? Instead of taking such a big risk of uncertainty to get down to mining, is it bad to sell graphics cards at a good premium? You don’t really think the tech monopoly industry has low profits, do you? Many of these high-end manufacturing materials cost, may be less than 10% of the retail price (of course, there are R & D costs, logistics and storage costs, etc.), but even after adding up, it may be less than 50%.
The above is the first reason, the second reason is that there are specialties in the field. Graphics card manufacturers take the technology route, is the chip industry, the entire industry chain is around the chip design, manufacturing, packaging, testing and sales to develop. How about mining? You must not think that mining is just buy a computer at home to boot on the line, mining is also a threshold, the need for site infrastructure, electrical facilities, network communications, hardware and software operations and maintenance, etc., is a typical resource-intensive industry, in order to maximize profits, to reduce costs to the extreme, such as looking for low electricity prices, looking for cheap land, looking for places with low labor costs, the whole is also A complete industrial chain. As the saying goes, across the line like a mountain, any industry, is not as simple as it seems on the surface, a graphics card manufacturers, do not look as if the wealthy, really come to scale to transform the mining industry, how to also have to take off into the skin, is not simple to do well. In fact, this is the fine division of labor formed by the modern industrial system, each division of labor in the field is certainly profitable, otherwise there will be no one to do, then why do we have to divide the work, not a business to do all the things? Essentially, it is because there are specialties, each person, the advantages of each enterprise are different, in a division of labor can do a good job in a division of labor may not be able to do a good job. Therefore, you see, in addition to many sets of national system to create a giant enterprise, few market-oriented enterprises will be their own to do all the division of labor link.
The national system to build the enterprise, you think I am talking about who, of course, is South Korea’s Samsung.
