Bitcoin Mining Insiders Reveal the Rise and Fall of the Crypto Industry: 90% of Mining Companies Collapsed

·

Last week, Bitcoin prices surged to new heights, peaking at over ¥5,600 per coin—a strong continuation of the upward trend that began in October last year. After three years of volatility—from explosive popularity to sudden decline and now a full recovery—the Bitcoin ecosystem, driven by approximately 2,000 entrepreneurs, has once again become a market hotspot.


Story 1: From Education Entrepreneur to Bitcoin Miner

Key Term: Hash Rate

Hash rate measures a Bitcoin miner’s ability to produce Bitcoin, representing the number of hash collisions a miner can generate per second. The conversion ratio is:

The current global hash rate stands at roughly 2,000P, competing daily to mine 1,800 Bitcoins. Mining can be simplified as this competition among computational power. Hash rate trends generally correlate positively with Bitcoin prices and negatively with mining hardware costs.

From Tutoring to Cryptocurrency

Wu Guangzeng, COO of Haobtc.com, shared his Bitcoin journey in a Beijing office. A 30-year-old serial entrepreneur, Wu transitioned from running a tutoring business to diving deep into Bitcoin.

Ambitions and Market Shifts

Wu aims to maintain 0.1% of the global hash rate (0.2P), mining ~0.18 BTC daily. Over four years, this could yield 262 BTC.

"People used to call me a fraud for working with Bitcoin. Now, I’m ahead of the curve."

2023’s Market Revival: Policy shifts, blockchain adoption, and practical use cases (e.g., gaming payments) have revitalized Bitcoin’s reputation.


Story 2: Managing the World’s Largest Bitcoin Mining Farm

Key Term: Bitcoin Mining Rigs

These specialized computers use high-performance chips (and lots of electricity) to mine Bitcoin. Prices range from ¥200 to ¥200,000 per unit.

Sun Xiaoxiao: From Project Manager to Mining Mogul

Sun, a former IT project manager, entered Bitcoin mining in 2013. Now, he oversees Haobtc’s mining farms in Xinjiang and Sichuan, totaling 110P hash rate.

"Mining is a survival game—we’ve faced blackmail, landslides, and more."

Sun now leads Haobtc’s Standard Hash Rate Exchange, emphasizing that mining’s future lies in large-scale,专业化 operations.


Story 3: The Bitcoin Veteran’s Highs and Lows

Wu Gang: The ‘Gandalf of Bitcoin’

A pioneer since 2009, Wu Gang lost 8,000 BTC from an old wallet but remains a linchpin in China’s Bitcoin community.

Market Realities

Survivors: Only well-funded or adaptable companies endure.


Market Outlook: Long-Term Confidence

"Bitcoin is the internet’s next phase—blockchain is just one应用." —Wu Gang

FAQ Section

1. Is Bitcoin mining still profitable?

Yes, but requires scale and cheap electricity. Solo mining is near-impossible.

2. What’s the biggest risk in Bitcoin investing?

Leveraged trading—50x futures can wipe out accounts in hours.

3. Why did 90% of mining companies fail?

Poor capital management + 2013–2015 price crash.

👉 Explore Bitcoin’s future with OKX


Source: Tencent Tech