In 2015, a veteran miner known as Lao Zhu, identified a new cryptocurrency that had just launched with low mining difficulty, so he purchased a large amount of equipment in advance, preparing to make a significant profit. He calculated the returns, planned for electricity costs, and even moved to a remote area to save on expenses. Initially, the mining went smoothly, and his wallet received deposits every day; he was confident that he was heading in the right direction.
However, after a few months, the mining pool's hash rate began to grow exponentially, with a flood of capital entering the market, causing the difficulty to skyrocket, and Lao Zhu's equipment instantly became 'antique.' Not only did his earnings plummet, but the cryptocurrency's price also fell by half. He thought he could 'hang on a little longer,' but he faced continuous issues such as mining machine failures, a collapse in the second-hand market, and rising electricity costs. The profits he had initially planned turned into a mountain of loss in equipment.
Looking back on this experience, he finally understood:
The cryptocurrency world is not just about market fluctuations; the industry chain itself can also rapidly spiral out of control when you are unprepared.
The warning for those who follow is simple:
When your investment turns into a gamble on the future, and all variables are beyond your control, any seemingly 'guaranteed profit' model can collapse overnight. Staying flexible, assessing costs, and always reserving an exit route are key to surviving in the industry track.
