I reuploaded bootloader using USBtinyISP and Arduino IDE (burn bootloader), and it worked (checking through avrdude):
avrdude -c usbtiny -p m328p
avrdude: AVR device initialized and ready to accept instructions
Reading | ################################################## | 100% 0.01s
avrdude: Device signature = 0x1e950f (probably m328p)
avrdude: safemode: Fuses OK (E:FD, H:DE, L:FF)
avrdude done. Thank you.
There's green light for power, and orange LED blinks when I reset the board. However, I still can't upload blink project onto the Arduino:
avrdude: stk500_recv(): programmer is not responding
How can I fix this problem?
UPDATE: I managed to upload the code to the board. However, I still got the error from time to time (80% of the time actually).