The hidden wealth groups behind Dogecoin are all prostitutes

When the topic of Dogecoin became frenzied, Litecoin miner Wu Jie realized that he might have boarded a speeding wealth train.

Looking at the million-level Dogecoin account balance presented in the wallet, he finally understood what it means to be "pie in the sky".

The source of all this is due to the soaring price of Dogecoin. Dogecoin was born in 2013 as an ironic joke. After eight years of neglected development, in 2021, because of the Gamestop "anti-Wall Street movement" that broke out in the United States, and Tesla founder Musk's vigorous shouting, a Soar into the sky.

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, the unit price of Dogecoin is US$0.506, with a total market value of over US$65 billion, ranking fourth in the market value of encrypted assets.

In the face of the wealth effect, Dogecoin gathered a new batch of fans, and a large amount of funds began to pour in, trying to salvage their dream of getting rich from the constantly beating K-line.

However, only a few people know that the biggest winners of this round of Dogecoin's rise are actually Litecoin miners.

As a senior mining person, 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 and three eats". Not only did he get the dividends from the rise of the mined Litecoin and Dogecoin, but he also got the benefit of the rise in the price of mining machines.

Elon Musk: Dogecoin 1.14.5 upgrade is "important": Jinse Finance reported that Dogecoin has released Dogecoin Core 1.14.5 upgrade. Users are advised to update immediately as important security fixes are included. Following the reduction in relay fees in 1.14.4, 1.14.5 reduces referral fees, and also includes bug fixes and performance improvements. In response, Elon Musk retweeted and commented: "This is important." [2021/11/9 6:40:21]

Dogecoin, which is currently on fire, still adopts the method of merged mining with Litecoin.

At the beginning of 2014, Li Qiwei, the founder of Litecoin, once raised the security risk of 51% attack on Dogecoin, so he suggested that Dogecoin and Litecoin should be merged for mining. Litecoin, known as a replica of Bitcoin, undoubtedly had a more vigorous vitality than the obscure Dogecoin at the time.

Subsequently, Dogecoin’s lower and lower hash power values caused community concerns. Facing the survival crisis, community developers finally decided to use the auxiliary workload verification mechanism (AuxPoW) to merge Dogecoin and Litecoin for mining.

This means that Dogecoin miners are also Litecoin miners. It can even be said that they were originally Litecoin miners, and Dogecoin was just a giveaway.

LocalBitcoins has added support for Dogecoin and other 7 cryptocurrencies: Jinse Finance reported that the Bitcoin peer-to-peer trading platform LocalBitcoins announced last week that it is adding support for Dogecoin, in addition to adding support for USDT, Polkadot, ADA, BCH, USDC and LINK support. [2021/6/2 23:03:16]

Recalling the initial motivation for choosing to mine Litecoin, Wu Jie seemed very calm. "Although Litecoin's growth rate is not high, my partners and I believe that the income from mining Litecoin is relatively stable, so we started to buy Litecoin mining machines for mining four or five years ago."

According to Wu Jie’s account for Rhythm, the mining machines for Litecoin on the market are mainly Antminer L3+ and Innosilicon A4+. At present, each of these two mining machines can mine about 16 yuan worth of Litecoin per day, and the average daily electricity consumption of each mining machine is about 7 yuan.

However, the current daily income of Dogecoin given by mining is 65 yuan.

In other words, mining Litecoin itself can already cover the electricity expenses for mining. The income of Dogecoin as a gift is pure profit, and with the skyrocketing price of the currency, the value continues to increase, and the income far exceeds that of Litecoin.

It’s like you go to the mall to buy a luxury bag, and after N years, you find that the pendant on the bag has suddenly become a priceless limited edition art collection. The value of this gift has far exceeded the value of the bag itself.

Billionaire Stanley Druckenmiller: Will not go long or short Dogecoin, Bitcoin is difficult to replace: Investor Stanley Druckenmiller recently shared his views on Bitcoin, Ethereum and Dogecoin. The billionaire investor said that Dogecoin is “like an NFT, a manifestation of the craziest monetary policy ever.” He added: “I don’t think I can really see it right now because there is no limit to the supply. utility. It's just a wave of money in the 'Big Stupid Theory'. Having said that, I wouldn't go long or short on it because I don't like putting out bonfires with my face. So I'm just pretending to be Dogecoin Doesn’t exist. I hardly think about Dogecoin, so when it goes up, I don’t mind.”

Also, between bitcoin and ethereum, Druckenmiller said: "I think bitcoin wins the store of value game" because it's "a brand that's been around for 13 to 14 years, and it's a finite supply." .” When asked about whether other cryptocurrencies will replace bitcoin, he reiterated that bitcoin “is going to be very, very hard to replace.” While he acknowledged that “the lead in smart contracts and stuff like that belongs to ethereum,” “I Kind of doubtful it will hold its own. It reminds me of Myspace before Facebook. Or a better analogy is Yahoo before Google.” (Bitcoin.com) [2021/5/30 22:56: 39]

However, speaking of this windfall, Wu Jie, as the winner's family, reacted with regret.

Billionaire Mark Cuban Reveals Bought Dogecoin For Son: Billionaire Dallas Mavericks Owner Mark Cuban Reveals He Bought Some Dogecoin (DOGE) For His Son, Calling Buying Dogecoin “Best Value For Money” entertainment". (CryptoGlobe) [2021/2/9 19:20:30]

"I'm not a believer in Dogecoin. The Dogecoin that has been dug up these years is "digging, selling and withdrawing". I didn't expect that Dogecoin will rise to the current level, and I can't hold more than 200 Dogecoins. Double the income, not earn much at all.”

When asked how much actual income Dogecoin brought, he replied: "It's only more than 2 million yuan."

The mining machine has to calculate another account.

At 9pm on May 10, when most people were enjoying their break after get off work, Wu Jie was still nervously staring at the screen of his phone.

As the mining machine trading business grew bigger and bigger, Wu Jie and several partners established the company Coin Core Technology. As one of the partners, the night is the peak of his work, and the news in the mining machine trading group is endless.

When refreshing the group news, Wu Jie found that an upstream supplier was shipping 300 Antminer L3+ mining machines, and someone in the group quoted a price of 9,000 yuan each. But he is sure to get it at a higher price and make a profit of 60,000 yuan. However, after only a delay of 3 minutes, these mining machines have been locked.

"Dogecoin skyrocketed 250% in one day" rose to No. 5 on the Weibo hot search-zce list: Sina Weibo data shows that "Dogecoin skyrocketed 250% in one day" was on the Weibo hot search-zce list and rose to No. 5 on the Weibo hot search-zce list bit, heat value 1166849. [2021/1/29 14:19:05]

In 3 minutes, he missed the profit of 60,000 yuan.

"This kind of situation is too common recently," Wu Jie said to Rhythm, "Recently, WeChat has hundreds of transaction information every day, and if you don't pay attention, you will miss an order. So now I have a dedicated transaction phone, for fear of missing important information.”

Rhythm survey found that in recent weeks, the price of Litecoin dual-mining mining machines has skyrocketed, and the supply is in short supply.

Taking the common Ant L3+ in the market as an example, the price of the mining machine listed by Xianyu is currently floating around 9,000 yuan.

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

Wu Jie told Rhythm that the price of Litecoin mining machines has risen in the past few weeks, and considering the transportation costs of mining machines, the larger the order quantity, the higher the price. At present, the L3+ pending orders in Wu Jie’s circle of friends have fluctuated around 9,200-9,600 yuan, and the A4+ has exceeded 10,000 yuan.

However, just four years ago, the unit price of Litecoin mining machines was only 300 yuan, and it slowly rose to more than 1,000 yuan in the later period. "But at that time, no one wanted a 300 yuan Wright mining machine. Our team only bought less than a hundred machines to mine coins by ourselves, and later sold them at a price of around 1,000-2,000 yuan."

Over the years, as the price of Litecoin has continued to rise, so has the price of Liteminers. Just two weeks ago, Wu Jie’s team received an order for up to 1,000 mining machines, each of which cost about 3,800 yuan. These mining machines were subsequently sold at a price of 4,200 yuan each, and the revenue from one order reached 400,000 yuan.

"But who would have thought that the price of mining machines would double in two weeks?" Wu Jie said.

How many lucky people are there like Wu Jie?

According to MiningPoolStats data, as of press time, the average computing power of Litecoin on the entire network in the past 7 days is 357T, of which the computing power of the entire network has been increased to 300T in January this year, and the computing power of the entire network has not fluctuated significantly in the past month. The relevant staff of F2Pool analyzed the rhythm and said that the main reason is that the number of mining machines has not been updated in batches.

In response to the portraits of Litecoin miners, Yuchi also stated that the main products of cloud computing power in the market are BTC and some ETH, and there are very few LTC cloud computing power products. Most of the people who mine LTC are old miners with their own mining machines, and they mainly use the mining method of mining pool hosting.

MiningPoolStats data shows that currently the mining pool with the largest computing power of Litecoin in the entire network is F2Pool, with a computing power value of 56.6T. F2Pool told Rhythm that according to the calculation of the mainstream mining machine L3+ in the market, the computing power of F2Pool can be converted to 110,000 mining machines.

Based on this, Rhythm Computing found that the current Litecoin network computing power is 343T, which can be converted into more than 650,000 L3+ mining machines.

Data source: MiningPoolStats

However, among these Litecoin miners, there may not be many old miners like Wu Jie, and more are new miners who have been attracted by the wealth effect of Dogecoin this year. With their belief in Dogecoin, they hope to realize wealth freedom.

Gao Zhiqiang in Shenzhen is a new miner. He named his WeChat "Freedom" and longed for the double freedom of life and economy. In May of this year, he decided to start his Dogecoin mining career, and has successfully mined more than 40 Dogecoins so far. He was so excited that he said in the circle of friends, "The freedom of milk tea has been initially realized."

Under the frenzy, Wu Jie believes that now is a good time to ship mining machines, "Now the price of mining machines has risen too high, and I will sell all the goods I have."

When asked about his future expectations for Dogecoin, Wu Jie believed that the skyrocketing price of Dogecoin was just a short-term phenomenon of "diaosi culture" and Musk's orders, and he could not see the long-term value. On the other hand, he also intends to keep some Dogecoin and Litecoin mining machines in the future. "I can't predict the future, and I am also optimistic about the future trend of Litecoin," he said.

On May 11, Musk, the self-proclaimed "Godfather of Dogecoin", launched a poll on Twitter, asking netizens "whether they want Tesla to support Dogecoin payment". As of press time, more than 3 million people have voted, and 80% of netizens expressed "support".

It seems that this wave of Dogecoin will continue. In the ups and downs of the K-line, some people enter the market freshly, some people close when they see a good deal, and some people watch the fire from the other side. Blood and capital are surging in the carnival of the market. In the hustle and bustle, who can have the last laugh, is it you, me, or Musk?

Wu Jie and Gao Zhiqiang in this article are pseudonyms.

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