Cryptocurrency

Mining Bitcoin: efficiency is key

To increase difficulty, obsolescence, and manufacturing of new equipment with a larger hash. It is the circle that feeds the competition between the manufacturers of hardware for mining Bitcoin. The efficiency, for its part, is the field of battle in that circle.

To get a better efficiency, means taking the lead in the “arms race”. Those companies that do not achieve the optimal performance of their ASICs, will be left behind, as indeed is already lagging Canaan Creatives, one of the major manufacturers.

Currently, there is an oligopoly very centralized. A handful of companies controls the production, distribution and to the rhythm and power consumption of the whole business of mining the main of the cryptocurrencies in the world.

Who is winning the “arms race”?

The all-powerful market are Bitmain, MicroBT, Ebang, Canaan and Innosilicon. Right now, these equipment manufacturers of mining Bitcoin, bet on the efficiency for gain (or regain) ground.

In a report published by BitMEX Research, he examines the box of competition and the state of the major manufacturers. The predominant place is occupied by Bitmain. This company, based in Hong Kong, dominates 46% of the market. It should be noted that this dominance is waning dramatically.

For its part, the relatively new MicroBT, covers 37% of the market, establishing itself as a threat to Bitmain. In the next batch of sales, we will define the new balance. Machines for mining Bitcoin with more efficiency will be the engine of the same.

The two giants were launched on the market with their versions more powerful. Bitmain with the series S19 and T19, while MicroBT did with the M30S+. The first has already sold out its initial batch, while the latter are being highly demanded by the growing market of the united States.

On the other hand, the company Canaan Creatives, continues to fight against the odds. Their mining more advanced, the AvalonMiner 1166 1146 pro, are clearly inferior to their rivals in the possession of hash. At the same time, the company continues to lose strength in the bag, after constant crashes since the 14th of may until now.

Percentage of participation in the market of the main manufacturers of hardware miners. Source: BitMEX

What is the efficiency of the mining machine Bitcoin?

The efficiency can be summarized in the simple formula Watts per Terahash (W/T). The same, indicates that the lower the electricity consumption per Terahash, the greater is the efficiency. On the contrary, if the number of watts is high in this relationship, the efficiency of the equipment is low.

For example, the already mentioned S19 and M30S+ of Bitmain and MicroBT respectively, have an efficiency of below 30 watts per Terahash. In this way, as noted in the chart, the low electrical power consumption, is one of the most important parts of the “arms race” of the most important manufacturers. Therefore, this has been decreasing, and everything suggests that this will continue.

The competition has driven the continuous efficiency of the hardware for mining Bitcoin.

Ecological benefit

This tendency to improve the efficiency of mining equipment for Bitcoin that consume increasingly less power, benefits the environment. The usual accusation that the removal of Bitcoin is a “threat”, since the alleged exaggerated consumption of energy increases carbon emissions, remains in the plane of the exaggeration according to multiple studies.

One of these studies, was launched in November of 2019. The same was in charge of researchers from the University of Aalborg, Denmark. In the published article, dismissive of the accusations, and underlines the role of the efficiency progressive machines dedicated to mining Bitcoin.

“Unlike previous studies, it has been found that the production and purpose of such equipment, will lead to a smaller contribution in the total impact. At the same time that it is expected that the Hashrate continues to rise, the energy consumption and the environmental impact of TH mined, will tend to be reduced,” concludes the study.

The other important aspect of this ongoing development of the ASIC, is that it will make mining inefficient to retire. All this leaves a rather encouraging about the future of the mining Bitcoin in terms of efficiency. It all boils down to a line in which the consumption of energy has a progression inverse to the power of hash.

Data to be taken into consideration

The internal problems of Bitmain, they did that to fall your influence in the market of 75% to 46%.Between 2017 and 2019, MicroBT advanced$ 7 to 35% of the market.The series S19 of Bitmain, have a power of hash between 95T and 110T per second, while the M30S+ of MicroBT possesses a power of 100T.The overall consumption current of Bitcoin, is 69,03 TWh, which represents 0.33% of the world’s energy.

Reliable sources

The information of this content has been taken from reliable sources which are detailed below:
1 – Content is handled in a professional manner on the part of the authors of CriptoTendencia.
2 – external Sources: Investing.com, Bitmex.com and Vbn.aau.dk.

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About the author

Belinda Carey

Belinda Carey

A finance girl by education, Belinda has been drawn to cryptocurrencies ever since Bitcoin first emerged in the 2009. Nearly a decade later, Belinda is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies.

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