Bitcoin (BTC) mining continues to climb after a successful halving on May 11, but increased industrial attention could undermine “hashrate democratization”, according to a presentation at this year’s mining and investment summit.
The 2020 Mining and Investment Summit, hosted by Matrixport and sponsored by Bitmain, took place around Tuesday morning, bringing together “the leading companies in cryptocurrency and digital services.”
In a presentation entitled Bringing Bitcoin Mining to the Brader Market, Thomas Heller from HASHR8 gave an update on the mining industry, including ASIC’s demand trends.
Rather noted that the market is currently “under pressure to supply ASICs” and “a large group of enthusiastic miners want to buy them.” He noted that hardware vendors Bitmain, MicroBT and Canaan are already receiving orders from March to July 2021.
Commenting on the so-called Bitcoin supply crisis, Heller’s proposal noted:
Public and private companies in North America continue to accumulate bitcoin in addition to expanding bitcoin mining. This is leading to a supply crisis for Bitcoin itself. ”
The desire of institutions and companies to accumulate bitcoins has contributed to an increase in mining revenues, which in turn has increased the demand for new miners and ASIC users. Large miners are increasing their business in the midst of bitcoin’s supply pressure and trying to ensure the highest possible hash speed within their borders.
These trends may steer retail away from democratization as China continues to dominate. As Heller points out, two-thirds of the hash rate of bitcoins is focused on mining in China.
It is generally accepted that China has one of the lowest break-even prices in the world. As of June, mining 1 bitcoin in China will cost between $ 5,000 and $ 6,000, provided the cost of electricity is $ 0.04 per kWh. Globally, the distribution rate of bitcoin mining can reach $ 8,500 in some jurisdictions.
Bitcoin mining is generally considered less easy for individual miners due to the costs and resources involved. Over the years, the mining industry has come under the control of weighted groups or groups of cryptocurrency miners who gather their computing resources. Although the pool allocation was not as concentrated as it used to be, three groups accounted for 45.3% of the hash rate in the last 12 months.
Bitcoin mining distributed by BTC.com
Heller said on Tuesday that location and individual ownership of the hash rate are important factors when considering decentralization.
HASHR8 recently announced the launch of Compass, a platform that matches Bitcoin miners to trusted hosts. Compass’ goal is to democratize the profitability of mining and attract more young miners to the barn.