Dogecoin behind the hidden rich group, they are whoring

When the topic of Dogecoin started to get crazy, Wu Jie, a Litecoin miner, realized he might be on a speeding Fortune train.

Looking at the Dogecoin account balance in the millions in his wallet, he finally understood what "pie in the sky" meant.

The source of all this comes down to the soaring Dogecoin price. Dogecoin, which was born as a satirical joke in 2013, took off in 2021 after eight years in the dark thanks to the anti-Wall Street movement at GameStop in the United States and a big push from Tesla founder Elon Musk.

Since the end of last year, Dogecoin has risen from $0.002 to $0.722, an increase of more than 300 times in half a year. As of press time, Dogecoin is trading at $0.506 per unit and has a total market capitalization of more than $65 billion, ranking fourth among crypto assets.

In front of the wealth effect, Dogecoin gathered a new batch of fans, a large number of funds began to pour in, in an attempt to salvage their dream of getting rich from the beating K line.

Few people know, however, that the biggest winners of Dogecoin's rise are Litecoin miners.

As a veteran of the mining circle, Wu Jie is not only a Litecoin miner, but also a middleman of mining hardware equipment such as mining machines. In this round of bull market, he can be described as "one mine three eat", not only to eat the mining Litecoin, Dogecoin rose dividends, but also to get the benefits of mining machine price rise.

A windfall or a broken leg

At present, the fire of Dogecoin and Litecoin is still used to merge mining.

At the beginning of 2014, the founder of Litecoin, Li Qiwei, suggested that Dogecoin and Litecoin should merge for mining after he proposed that Dogecoin had security risks of 51% attacks. Litecoin, known as a bitcoin clone, was certainly more alive than Dogecoin, which was unknown at the time.

Later, Dogecoin's lower and lower hash power caused concern in the community. In the face of survival crisis, the community developers finally decided to merge Dogecoin and Litecoin mining using Auxpow.

This means that Dogecoin miners are also Litecoin miners. You could even say that they were Litecoin miners and Dogecoin was just a giveaway.

Mr. Wu is calm as he recalls his initial motivation for mining Litecoin. "Although the increase of Litecoin is not high, my partners and I believe that the profit of mining Litecoin is relatively stable, so we started to buy mining machines in succession four or five years ago."

According to Wu Jie to Rulu calculate an account, the market mining Litecoin mining machine is mainly Ant L3+ and core A4+. At present, each mining machine can mine about 16 yuan worth of Litecoin per day, while the average daily electricity consumption of each mining machine is around 7 yuan.

However, Dogecoin, a gift from mining, currently earns 65 yuan a day.

In other words, mining Litecoin itself can already cover the electricity costs of mining. Dogecoin, as a gift, is a pure profit and continues to grow in value as its price skyrockets, far surpassing that of Litecoin.

It's as if you went to the mall and bought a luxury handbag, only to discover years later that the pendants on the bag have suddenly become a priceless limited-edition art collection. The gift is worth far more than the bag itself.

However, speaking of this windfall, Wu Jie, the winner's family, reacted with regret and a broken leg.

"I am not a Dogecoin believers, these years dug out of the Dogecoin is" dig sell mention ", can not think of the Dogecoin will rise to this degree now, also can not hold the Dogecoin more than 200 times the income, did not make much."

When asked how much Dogecoin has actually brought in, he replied: "Just over 2 million yuan."

Hot mining machine market

The mine has another bill to settle.

At 9pm on May 10, when most people were taking a break from work, Wu Jie was still nervously staring at his phone screen.

As the mining machinery business grew bigger and bigger, Wu Jie and several partners together set up the company Coincore Technology. As one of the partners, he was working at his peak at night, and the news in the mining machine trading group was endless.

When refreshing the group message, Wu Jie found that an upstream supplier was shipping 300 Ant L3+ mining machines, and someone in the group was offering 9000 yuan for each machine. But he is sure to go for a higher price and make a profit of 60,000 yuan. However, after a delay of only three minutes, this batch of mining machines have been locked.

Three minutes, and a profit of 60,000 yuan missed.

"Recently, this kind of situation is very common," Wu Jie told Rongda. "Recently, WeChat has hundreds of transaction messages every day, and if I'm not careful, I'll miss an order. So now I have a mobile phone dedicated to trading, and I'm afraid I'll miss important information."

The Rhythm survey found that the price of Dogecoin mining machines has skyrocketed in recent weeks as demand outstripped supply.

Taking the common ant L3+ in the market as an example, the current price of the mining machine hanging out of idle fish fluctuates around 9000 yuan.

The price of Jinbei L5 mining machine has approached 20,000 yuan, and it has been out of stock for a long time.

Wu Jie told Litecoin mining machine prices rose in the past few weeks, and taking into account the transport costs of mining machine, the larger the order quantity, the higher the price. At present, the L3+ order of Wu Jie's Moments has been floating around 9200-9600 yuan, while the A4+ order has exceeded 10,000 yuan.

However, just four years ago, the unit price of Litecoin mining machine was only 300 yuan, and later it slowly rose to more than 1000 yuan. "But at that time, no one wanted the 300 yuan Lite mining machines. Our team only bought less than 100 machines to mine coins by ourselves, and later sold them at the price of 1000-2000 yuan."

Over the years, as the price of Litecoin has continued to rise, so has the price of Litecoin mining machines. Just two weeks ago, Wu's team received orders for 1,000 mining machines at a cost of about 3,800 yuan each. The machines were later sold for 4,200 yuan each, with a profit of 400,000 yuan on one order.

"But who would have thought that two weeks later the price of a miner would double?" Wu Jie said.

How many lucky ones?

How many lucky people are there like Wu Jie?

According to data from MiningPoolStats, as of this publication, the average power of the entire network Litecoin is 357T for nearly 7 days. In January this year, the whole network power has been promoted to 300T, and the whole network power has not fluctuated greatly in nearly a month. Fish pond related staff to rhythm analysis said that the main reason is that the number of mining machines did not batch update.

In view of the portrait of Litecoin miners, Yichi also said that the main cloud computing power products in the market are BTC and some ETH, while LTC cloud computing power products are very few. Most of the LTC miners are old miners with their own mining machines, which mainly adopt the mining method of mine pool trustedship.

MiningPoolStats data shows that the fish pool ranks first in Litecoin calculation power in the whole network, with a calculation power value of 56.6T. According to the L3+ calculation of the mainstream mining machine in the market, Yuchi's computing power can be equivalent to about 110,000 mining machines.

Taking this as a benchmark, it is found that the current Litecoin network computing power is 343T, which can be equivalent to more than 650,000 L3+ mining machines.

Source: MiningPoolStats

However, among these Litecoin miners, there may not be many old miners like Wu Jie, but more new miners attracted by the wealth effect of Dogecoin this year, with the faith of Dogecoin, hoping to achieve wealth freedom.

Gao Zhiqiang in Shenzhen is one of the new miners. He has named his WeChat "Free" and hopes to achieve the double freedom of life and economy. He decided to start his own Dogecoin mining career in May this year and has managed to dig up more than 40 Dogecoins so far. He was so excited that he said on his WeChat Moments, "The initial realization of the freedom of milk tea".

Under the frenzy, Wu Jie thinks it is now a good time to ship the mining machine, "now the price of mining machine has risen too high, I have the goods will be out."

When asked about the future expectations of Dogecoin, Wu Jie, on the one hand, thinks that the Dogecoin boom is just a short-term phenomenon under the "diaosi culture" and Musk's call for orders, and sees no long-term value. On the other hand, he also plans to keep some Dogecoin and Litecoin miners in the future. "I can't predict the future, and I'm optimistic about the future of Litecoin," he said.

On May 11, Musk, the self-described "godfather of Dogecoin," took to Twitter to vote on whether he would like Tesla to support Dogecoin payments. As of this writing, more than 3 million people have voted, with 80% of the netizens expressing "support".

It looks like this wave of Dogecoin wave will continue, in the K line up and down, someone fresh admission, someone see good close, someone watching from the sidelines. Blood and capital together in the market carnival surging, a noisy, who can laugh last, is you, me, or Musk?

Wu Jie and Gao Zhiqiang in this article are pseudonyms.

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