When it comes to crypto mining, Bitmain has been the undisputed champion for a number of years. According to figures from its IPO filing, it controls around 85% of the crypto mining hardware market – a figure that certainly shouldn’t be scoffed at. It has also been the main contributor to the Bitcoin network hash rate for quite some time now, but it appears if it’s slowly losing its control.
At its peak, Bitmain controlled around 46% of the total network hash rate, but recently its control has slipped to 30% – giving rise to the theory Bitmain is somewhat struggling. Employees have been slowly leaving Bitmain and heading over to a new company called Bitewei. It is led by ex Bitmain director of design Yang Zuoxing and boasts a number of key ex-Bitmain employees.
Next Generation Chips
When it comes to mining hardware, Bitewei is producing some of the best chips ever seen. Its flagship Whatsminer M10 is 30% more power efficient than Bitmain’s Antminer S9 Hydro – a key factor to take into consideration when buying mining rigs. Its Whatsminer M10 isn’t due to ship until the end of the month, but the first batch has been completely sold out.
When it comes to buying hardware for mining cryptocurrencies there are only three factors people look at, power consumption, hash rate per second, and heat produced. Bitewei appears to have created a mining rig that syncs these aspects in perfect harmony to create the Bitmain killing crypto miner.
Power Cost is the Key Issue
Crypto mining firms are battling to keep running costs as low as possible, and the main factor mining farms are taking into consideration is the cost of power. Hydroelectric rich areas of the planet – such as Washington state and New York state – are seeing crypto mining firms arrive in droves. Washington state has even had to suspend new power applications while it upgrades infrastructure to cope with the demand. If crypto mining farms can’t get their hands-on low-cost power, the next best thing is power efficient mining rigs. Bitewei’s M10 is up to 30% more efficient than Bitmain’s flagship S9 Hydro, making it the to go choice for crypto miners of all size.
Bitewei’s mining rig is more powerful and yet consumes less power than Bitmain’s flagship model. This coupled with Bitmain’s bad rep within the crypto community for hogging the network hash rate is falling in Bitewei’s favor. There is a real chance that it could very quickly outstrip Bitmain as the leading supplier of crypto mining hardware, and through strategic partnerships it can easily do that. We could be about to witness the fall of a crypto mining giant, so this situation is certainly worth keeping an eye on.