Recently, a big player invested in a private hydropower station in the deep mountains of the country, spending 5.2 million to buy one that generates an average of 3 million kilowatt-hours of electricity per year. For various reasons, the on-grid electricity price of 0.3 yuan feels inconsistent with the expected return, and there are various hidden costs. Therefore, a mining pool was set up, focusing on CKB mining. According to the big player's analysis, it is expected to break even in about three and a half years. Here’s a summary of the current CKB mining situation:
I. CKB mining situation
Nervos CKB (abbreviated as$CKB ) is a blockchain project that insists on adopting a Proof of Work (PoW) consensus mechanism. The PoW consensus mechanism has been tested for over a decade on Bitcoin, and its security is widely recognized. Compared to Proof of Stake (PoS) and its variants (such as DPoS), the PoW mechanism creates a fully competitive market, maximizing the fairness of token distribution.
The mining algorithm for CKB is the self-developed Eaglesong, and it smoothly transitioned to the era of ASIC mining machines within just a few months after its mainnet launch. As of now, the total network computing power of CKB has reached a very high level, demonstrating the optimism of mining machine manufacturers and miners towards CKB's long-term prospects. The higher the computing power, the greater the network's security, which further enhances the value of CKB.
In addition, the Nervos team has been committed to improving the CKB network and developing related tools, launching many tools that aid ecological development. This year, CKB will focus more on Layer 2 ecological construction, which is expected to further enhance the value of CKB.
II. Profit situation
Invested 5.2 million to purchase a private hydropower station that generates an average of 3 million kilowatt-hours per year. At the same time, you plan to use the electricity generated by this hydropower station to mine CKB. Based on the current market situation and CKB’s mining efficiency, we can conduct a simple profit analysis.
Hydropower station generation capacity: Assuming the hydropower station generates 3 million kilowatt-hours per year, the annual electricity sales revenue would be 0.3 yuan/kWh × 3 million kilowatt-hours.
CKB mining revenue: Using the electricity generated by the hydropower station to mine CKB can yield corresponding mining rewards. Based on the current mining difficulty and total network computing power, we can estimate the annual mining revenue.
Cost analysis: The operational and maintenance costs of the hydropower station, including personnel salaries, equipment maintenance, fuel costs (if any), etc., need to be considered. Additionally, the cost of purchasing ASIC mining machines and electricity expenses (although this electricity is generated by the hydropower station itself, its corresponding value still needs to be considered in the total cost calculation).
Break-even period: Based on the total annual income (electricity sales revenue + mining revenue) and total costs, we can calculate the break-even period.
Based on the current market situation and CKB's development trend, we can reasonably speculate that, under conditions of high mining efficiency and stable power generation from the hydropower station, the break-even period may be about three and a half years. Of course, this is just a rough estimate, and the actual situation may be affected by various factors such as market fluctuations, changes in mining difficulty, and the operational status of the hydropower station.
