Hydropower Bitcoin miners have changed the lives of local people in impoverished mountainous areas to some extent.
Original title: “Contribution of a small mine owner next to a hydropower station in Yunnan, Sichuan”
Written by: Community Jun Source: Community Junchao Investment Public Account
The community monarch recently communicated with small miners operating bitcoin mining in Yunnan, Sichuan, and organized the exchange content as follows:
Question: Can you briefly introduce where your mining team is located?
Answer: In the mountains of Sichuan and Yunnan, some are near large power stations with good traffic locations, and some are deep in mountains and old forests in very bad locations.
Question: Why is there any benefit in doing this in the depths of the mountains?
Answer: This question is more complicated to answer. The simplest reason is the low cost.
Q: Can you specifically explain the reasons for the low cost?
A: To be more specific, we are mainly engaged in hydropower mining for Bitcoin. There are some hydropower stations in Dashan, Yunnan, Sichuan. During the high water season in summer, these hydropower stations can operate at full capacity to supply power to the surrounding counties and villages, because The terrain has a large drop, and the hydropower stations here can generate relatively large amounts of electricity when they operate at full capacity during the flood period. These hydropower stations are usually isolated grid hydropower stations, but there is no way to supply power to the state grid.
The specific reasons include the remote location. If many power transmission facilities are repaired, the cost advantage of hydropower will be spent on the construction of transmission lines and maintenance, and the real operation may lose money. Electricity is a special thing. If you don’t use it, you waste it. In summer, the surrounding villages don’t actually use a lot of electricity. Most of the electricity is wasted in the end. And in the process of power waste, it also has a great impact and loss on the equipment of the hydropower station itself.
There are also some power stations connected to the State Grid, but there is no way to output all the power loads to the State Grid, because there are also many large hydropower stations in Sichuan. Everyone can’t run out of power generation in summer. Maybe UHV and storage technology are already available. Yes, but it has not been promoted in all places. So if all hydropower stations supply the State Grid at full capacity, the State Grid may not be able to support it either. I don’t know so much about the specific details, anyway, a lot of electricity is left to waste.
At the same time, because this part of the area is in the mountainous area, it is basically impossible for many companies to enter into production. The transportation is not developed, and the flat land is too small, and the cost is high. Even if it enters, it will not be able to recruit people.
This part of the excess electricity needs to be consumed by us. The price is also very cheap. I even understand that in some cases, even if I use this electricity at zero cost, it is good for hydropower plants in certain situations, and the damage to the generator is a little bit less. I am not a hydropower professional and may not be accurate. This is probably what I mean. Of course, I pay for it. It is definitely impossible to use it at zero cost.
Q: What is mining?
Answer: The mining industry is quite special. Bitcoin mining is a process that you can understand as standardizing electricity into a rechargeable card. The tool used is the mining machine. Generally, the new one is very expensive, and the old one is cheap. The mining machine has its own pricing logic.
What you can understand is how much electricity you have. Basically, I only need to buy enough machines to use this electricity and exchange it for Bitcoin. This Bitcoin can be sold on the market. Part of it needs to be sold to pay the electricity price. Part of it is profit.
For me, the most important thing for me is to buy mining machines. At the same time, I need a small team to watch the work of these mining machines. Compared with other industries, I need a large site, a computer room, or something, what I need here. Not much.
Q: Is there any technology required for operation and maintenance?
Answer: No, it will be used when the machine is good and can basically operate the computer. When it is broken, repairing requires technology. If it is difficult to return to the factory, basically the technical difficulty is solved when the mining machine is built. It is hard work to find the right place to solve the problem.
Q: What are the local benefits?
Answer: The majority of the contribution is definitely to the hydropower station. The employees of the hydropower station need to be paid, and the hydropower station has to pay taxes. Part of it depends on the electricity bills provided by us, which also makes contributions to the local area. These mountainous areas are underdeveloped. The local area is basically left-behind elderly and children. Before we came, the industry basically consisted of local native products, and there was very little foreign investment.
Let me give you an example. In addition to electricity bills, some of us need to stay in the local area for a long time, so we have to buy food, housing and transportation from the locals, and at the same time food, drink and entertainment must be purchased locally. For example, in our mine, we need to ask a local aunt to cook and give them 3,000 yuan a month. It’s not that the local salary is so high. The main reason is that we feel the hardship in the mountains. It is important for them to open a thousand more. For example, letting them help move the machines to the shelves during the rainy season, paying a daily fee is also an income. In fact, in some places after we came, including the logistics industry, the maintenance industry, catering, accommodation and entertainment, there were actually many changes in all aspects. Some of them were brought about by our direct consumption, and some of the local masters became rich after we paid. , I consume it myself, and then it recycles.
Speaking of mountain roads in some villages, when we first arrived, we needed to use tricycles to pull machines up. Some people moved them, but trucks couldn’t get in.
Question: You are actually quite bitter in this way?
Answer: Actually it is very bitter. We have found resources (hydropower) in these mountainous areas, and then used them. The electricity bill is either paid to the collective, or to the power station and to the country. Sometimes it rains and there are many landslides. When we make money, everyone will be jealous, but when we lose money, no one will take care of it. It’s all our own money. We actually dealt with the local people and became friends.
Question: You introduced the situation in the high-water season. How do you deal with the low-water season?
Answer: My side will slowly shut down during the winter dry season and wait for the next year’s wet season. Some people will transfer their mining machines to other places where electricity is cheap, but I will not transfer them. It is mainly engaged in hydropower.
Question: How can the profits of your industry be easily disclosed?
Answer: The industry is more special. Just look at the mining cost and the currency price. It may only be in a big bear market that the mining cost is lower than the currency price. But in many cases, it depends on the price of entering the mining machine. If the price is high, it may be one or two I’m paying back every year, let alone profit. Profits this year are not bad.
Question: What do you want to express through this exchange?
Answer: The main thing is to vomit and vent. Recently, the policy pressure is very high. In fact, we especially want to pay taxes. If we get formalized, we can do it with a little profit. The encryption industry has good points and bad points, but we use water and electricity to mine. They are doing good and useful things. Taxation creates jobs and helps local governments absorb hydropower. If we don’t absorb it, the electricity will be wasted directly and there will be no way to keep it. China is too big, and not all places have good ways to attract investment. A team like me is actually very grass-rooted at first. Many practitioners I know usually don’t have high education in the early stage. They just know that they can make money and enter the industry slowly. Before opening a restaurant or driving a big car driver, what do you think? The rich second generation with a high degree of education will climb to the mountain to find a hydropower station.
There are big bosses in our industry, but there are also many small business owners. We don’t want to and cannot afford to go abroad to find mines. Many friends who go abroad to work as mines are deceived by foreigners and have their mining machines and infrastructure confiscated. We can’t even guarantee our personal safety, so we especially hope that the policy can give us a way to formalize, pay taxes, and survive. We can endure hardships, not afraid of hardships, and help local governments solve problems, hoping to give full play to our The role of.
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