Bitcoin mining heating up in china - Bitcoin News

Bitcoin mining heating up in china

FILE: Technicians inspect bitcoin mining machines at a mining facility operated by Bitmain Technologies Ltd. in Ordos, Inner Mongolia, China, on Friday, Aug. 11, 2017. Bitcoin is showing no signs of slowing down, the price of the largest cryptocurrency by market value is soaring as it gains greater mainstream attention despite warnings of a bubble in what not everyone agrees is an asset. Our editors select the best archive images on Bitcoin. Photographer: Qilai Shen/Bloomberg via Getty Images


One of the most profitable but also one of the most competitive operations in the crypto industry is Bitcoin mining. Thousands of people and organizations around the world are leveraging application-specific integrated circuits (ASICs) or custom bitcoins mining using the SHA256 consensus algorithm.

Bitcoin mining is heating up: high difficulty adjustment, pool consolidation, less concentration in China

As more people join mining, the overall speed increases but every two weeks, the difficulty adjustment algorithm (DAA) makes it difficult for mining. On the opposite side of the spectrum, if the miners are fumbling and leaving the bitcoin network, then the DAA will adjust downward and thus facilitate bitcoins mining. On June 16, 2020, the Bitcoin Network (BTC) saw an upward difficulty of 15.784T in the 635,040 block height.

Bitcoin mining is heating up: high difficulty adjustment, pool consolidation, less concentration in China

This slows down blocking production if even more miners leave the network before adjusting for the next difficulty. As of this writing, there are 15 mining pools spanning the BTC network and F2pool is still the most dominant pool with 21.3% of the network hash rate.

Bitcoin mining is heating up: high difficulty adjustment, pool consolidation, less concentration in China

Following F2pool they are followed by Poolin, Btc.com, Antpool, 58coin, Huobi, Binance, Slush, Lubian, Viabtc, Okex, Btc.top, Novablock, Spiderpool, and some unknown pools. The number of pools since the half has decreased by at least 40% since the Bitcoin crossing on May 11. A report published on June 16 by Bitmax discusses the topic of “ASIC superiority.”

ASIC superiority and merger
The findings of Bitmex researchers suggest that the mining industry will unite even more today. “Further consolidation in the industry may be found in both the ASIC manufacturing and mining operations,” wrote Bitmax Research. Analysts also believe that “only 2-3 players will survive in the long-term,” in terms of mining activities, and researchers are also discussing the top four mining rigs in China – Bitmain, Microbt, Canaan and Ebang.

Bitcoin mining is heating up: high difficulty adjustment, pool consolidation, less concentration in China

“Today, competition is growing, with strong products from new players like Microbt gaining drag and eating to the leader of Bitmain,” the report emphasizes. And a force to be reckoned with. ā€¯Based on Bitmex research, the findings indicate five predictions that include:

Competition has tightened in the ASIC manufacturing industry and Bitmain’s dominance has been significantly reduced over the past 18 months.
The ASIC manufacturing industry will continue to take shape. We believe that only 2-3 players will survive in the longer term.
The mining industry’s operating sector is also becoming a continuous strengthening of half. With new investments coming from a smaller number of well-funded entities.
The life expectancy of ASIC mining machinery can be considerably extended and the current generation of the products may remain in practice for several years.
While China is still dominant when it comes to ASIC production, China geographically loses its share of the mining operations of Europe and North America.

“More and more mining operations are moving from China”
On June 17, the Bitcoin Network (BTC) speed jumped to 120 exs / second despite the tough upward adjustment. Regional correspondent from China, Vincent He, explained on Wednesday that miners in the area are addicted to bitcoins as a side action rather than a full-scale venture nowadays. 8btc columnist interviewed the small mining farm operator Mr. Huang who said mining side ventures are more of a hassle than a “relaxing choice.”

“For a small miner like me, just invested to pay the electricity bill and wait for profits, even for big miners in the future,” Mr Huang revealed.

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