Recently, an investor purchased a private hydropower station in the mountains of China, investing about 5.2 million yuan, with an annual power generation of about 3 million kWh. Since the power grid purchase price is about 0.3 yuan/kWh, the profit is not ideal, and there are some additional costs in the operation of the hydropower station, the investor decided to try to use the electricity for Nervos CKB mining, and it is expected that the investment can be recovered in about three and a half years. The following is an analysis of this investment plan:

1. Background of CKB Mining

✅Nervos CKB ($CKB) is a blockchain project that uses the Proof of Work (PoW) consensus mechanism. PoW has been used in projects such as Bitcoin for many years and has high security. Compared with Proof of Stake (PoS), PoW provides a fairer mining environment, allowing miners to gain benefits in open competition. CKB uses the self-developed Eaglesong algorithm. With the upgrading of mining machines, its total network computing power has continued to rise, further enhancing the security and attractiveness of the CKB network.

II. Power generation capacity and revenue potential of hydropower stations

Annual power generation of the hydropower station: Assuming that the annual power generation of the hydropower station is 3 million kWh, if it is sold at the market price of 0.3 yuan/kWh, the annual electricity sales revenue will be approximately 900,000 yuan.

✅ Turn to mining income: Investing this part of electricity in CKB mining can theoretically generate higher returns. Based on the current CKB network computing power and mining difficulty, the annual mining income can be estimated.

3. Cost Analysis

✅Operational costs: The daily maintenance of the hydropower station, labor costs and other costs must be taken into consideration. Although the electricity comes from its own hydropower station, its market value still needs to be considered as an "electricity" cost.

✅ Mining machine purchase and maintenance: CKB mining relies on ASIC mining machines, which require a purchase cost. In addition, the depreciation, update and maintenance expenses of the mining machines must also be considered.

4. Payback period and profit forecast

✅Total income estimation: The total annual income includes mining income and possible income from electricity sales. Assuming that the market environment of CKB is stable and the annual yield of mining is high enough, theoretically the annual comprehensive income is expected to cover the investment and operating costs.

✅ Payback period: According to the above assumptions, under the premise that the average annual mining income remains stable and the power generation of the hydropower station continues, the estimated investment payback period is three and a half years. Of course, this is only a rough estimate, and the actual profit situation will also be affected by factors such as market fluctuations, changes in mining difficulty and the status of the hydropower station.

#CKB助力比特币生态 @CKB Eco Fund $CKB