Bitcoin

The increasing centralization of crypto mining was one of the key points at the 2020 mining and investment summit

Bitcoin mining (BTC) continues to rise after the successful halving on May 11th. However, increasing industrial concentration could undermine the “democratization of the hashrate”.According to a panel discussion at this year’s mining and investment summit.

Organized by Matrixport and sponsored by Bitmain, the The 2020 Mining and Investment Summit took place practically on Tuesday morningbringing together the “leading companies in cryptocurrency mining and financial services for digital assets”.

In a presentation entitled “Bringing Bitcoin Mining to a Broader Market”, Thomas lighter by HASHR8 provided an update on the mining industry, including trends in ASIC demand.

The increasing centralization of crypto mining was one of the key points at the 2020 mining and investment summit
The increasing centralization of crypto mining was one of the key points at the 2020 mining and investment summit

Heller explained that The market is experiencing a “reduction in ASIC supply”.with a “large group of eager miners who want to buy”. He stated that hardware providers Bitmain, MicroBT and Canaan are already taking orders for March to July 2021.

Heller’s presentation commented on the so-called Bitcoin supply crisis as follows:

“Public and private companies in North America continue to accumulate bitcoin and expand their bitcoin mining activities. This leads to a supply crisis for BTC. “

The rush to accumulate bitcoin by institutions and corporations has contributed to an increase in mining revenues which in turn caused a Increased demand for new and used ASIC miners. Big miners are stepping up their activities in the face of bitcoin supply shortages, trying to get as much hash rat within their limits as possible.

These trends could further remove the hash council of the industry from democratization as China continues to dominate. As Heller emphasizes Two-thirds of the Bitcoin delivery rate is concentrated in mining operations in China.

Usually, China is believed to have one of the lowest miner equilibrium rates in the world. As of June, mining a Bitcoin in China cost between $ 5,000 and $ 6,000, assuming $ 0.04 per kWh. Worldwide, The equilibrium rate of bitcoin mining could be up to $ 8,500 in some countries.

Bitcoin mining is generally viewed as less accessible to individual miners because of the costs and resources involved.. Over the years mining has been dominated by weighted pools or pools of cryptocurrency miners that combine their computing resources. Although the group distribution is not as concentrated as it was before in the last 12 months, Three groups accounted for 45.3% of the hashrate.

Distribution of the Bitcoin mining pool through BTC.com

The hashrate’s location and individual ownership are important considerations when it comes to decentralization, Heller said Tuesday.

HASHR8 recently announced the launch of Compass, a platform that combines bitcoin miners with verified hosting facilities. The goal of Compass is to democratize the profitability of mining and attract more small miners.

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