Cloud computing power summary: similar asset securitization
Take Bitcoin mining, the largest mining project in the market, as an example. Mining is essentially a manufacturing industry. It uses computing power equipment, consumes electricity, and produces bitcoins. At present, the total number of bitcoins produced worldwide is about 900 per day. Mine. If you want to invest in Bitcoin mining, you need to purchase mining machines. Due to the scale effect of the manufacturing industry and the current mining farms prefer large customers, 50 or even 100 sets are the threshold for custody-this is in the mining industry Basic experience. According to the Antminer S19 (95Thash computing power) or S19 pro (110T computing power), according to 100T, 100 units are 10P computing power.
Remarks: T and P are both hashing power units of Bitcoin mining SHA256 algorithm
The purchase cost is more than 1 million yuan for 50 units, and more than 2 million yuan for 100 units. The picture above is the official website of Bitmain. The futures has been in August 2021 (next year). Now we can find spot mining and need to add money to have the opportunity to purchase. Such an investment amount discourages many people, and the threshold of several million is inherently difficult to participate in the game. So there is cloud computing power.
To continue with the example, I now have 100P computing power equipment to mine (100Phash is approximately equal to 100000Thash), which is about 1,000 S19 mining machines. Of course, I am a big account. Now I need to withdraw funds quickly. What should I do? Cut the computing power into 100,000 shares, each with one T computing power, give a cycle, say one year, and then the mined coins within one year are credited to the account of the person purchasing the computing power every day, and retail investors can have small funds Participating in mining, large households (or institutions) can quickly withdraw funds, a win-win situation. This is basically a kind of asset securitization. The industry knows that it is not called that.
Computing power seems to be a win-win situation, but there are many problems. For example, there must be a centralized platform for computing power sales. You are not afraid of platform commissions, or platform running away. Imagine, I said I have computing power, and then I actually did not purchase enough equipment (or I did not purchase equipment), can I send money to customers normally every day? Yes. I only need to take out the money from the subsequent sales to buy coins and call the customer. The cloud computing business is a hotbed of Ponzi schemes.
If there are mining machines, there is a high probability that the cloud computing company’s operating model will be a virtuous circle. If there are not enough mining machines, the above situation will occur. Therefore, the purchase of cloud computing power must be well-known in the industry and have the opportunity to check the number of computing power equipment, mines, and operations.
S19 currently accounts for about 25% of the mining cost of digging bitcoin, and the fluctuation is around 30%, that is, to dig 1 bitcoin, as long as you sell 0.3 bitcoins to pay the electricity fee, the rest is basically profit (there is a small amount of custody Costs, maintenance costs, etc. can be ignored in the face of electricity bills).
NFTization of cloud computing power
NFT (non fungible token) non-homogeneous tokens, the reason why they are NFTs instead of ordinary tokens, is because the amount of computing power, time period, and selected vendors of cloud computing power owners may be different. Mortgage cloud computing power to cast NFT, and then NFT enters the secondary market for trading. It looks good, but it may not work in fact.
First, it is difficult to develop cooperation with miners.
For such an NFT platform, the partners needed are major mining machine computing power manufacturers. My mining machine computing power is selling well, why should I cooperate with you? Miners have sufficient funds to build a platform to sell computing power on their own, and there is no need to build an NFT to do so.
Big miners do not cooperate with this new NFT platform, and small miners (computing power providers) may cooperate. However, as mentioned above, the computing power products of non-well-known organizations are prone to thunder. It is not recommended to purchase such computing power, let alone NFT of this type of computing power.
Second, the hype logic of computing power NFT has bugs
Cloud computing power assets have been securitized, but the securitization is not thorough enough. Now that I want to make it thorough after NFTization, there is no such thing. Because this “securities” (the computing power after cutting) is not well circulated, but it is easier to sell. The transaction of computing power NFT is more like the delivery of computing power. After the delivery, it is necessary to agree on the duration of computing power. Under normal circumstances, buying NFT is to buy low and sell high, and this computing power NFT is just for contract delivery. Mining income can be obtained for the rest time. Most of the people who invest in mining are long-termists (want to earn coins, tune coins), otherwise they can directly invest in spot or futures to make quick profits (or losses).
Third, mining computing power has after-sales service. After NFT transaction, how to do after-sales service? The trading platform that publishes NFT does not have this capability, and the equipment does not belong to this platform.
Fourth, if there is a platform to do computing power, NFT is of course an innovation. It should be inclusive of innovation, but we need to start with BTC or ETH computing power. These two currencies have large business volumes, simple mining models, and business mature. You can’t start with a new type of pledge storage mining like Filecoin, otherwise it will easily become a pot of mud.
Mining machines have a secondary market, and computing power may also have a secondary market, but whether the secondary market of computing power can be conducted through NFTization is debatable.
