Cryptocurrency industry background

Since the birth of cryptocurrency, due to its "anarchical endorsement" feature, it has been subject to many supervisions and attacks along the way, but it is in this environment that cryptocurrency has grown rapidly for ten years. The current price of Bitcoin has exceeded $50,000, and it has risen by 150% in the past three months. If an industry has never received government support but still develop rapidly, it shows that the industry has deep-rooted and unshakable robustness and necessity.

We must admit that cryptocurrency has in fact become a kind of "General Equivalent", and it is an asset that is not restricted by time and place and circulates on a global scale, no one can stop the circulation of assets. After two rounds of bull markets in 2013 and 2017, the world has generally accepted cryptocurrencies. It is no longer possible for cryptocurrencies to disappear from human history, the four-year bull market will set a new high again in 2021-2022.

Cryptocurrency industry background

Since the birth of cryptocurrency, due to its "anarchical endorsement" feature, it has been subject to many supervisions and attacks along the way, but it is in this environment that cryptocurrency has grown rapidly for ten years. The current price of Bitcoin has exceeded $50,000, and it has risen by 150% in the past three months. If an industry has never received government support but still develop rapidly, it shows that the industry has deep-rooted and unshakable robustness and necessity.

We must admit that cryptocurrency has in fact become a kind of "General Equivalent", and it is an asset that is not restricted by time and place and circulates on a global scale, no one can stop the circulation of assets. After two rounds of bull markets in 2013 and 2017, the world has generally accepted cryptocurrencies. It is no longer possible for cryptocurrencies to disappear from human history, the four-year bull market will set a new high again in 2021-2022.

Mining industry ecosystem

In contrast to the banking financial system that relies on a centralized supervision system, the essence of cryptocurrency is a decentralized electronic cash system. Each transaction record forms an "account", and the processed accounts form a page of accounts, that is a block. Obtaining bookkeeping rights through competition is also commonly known as "Mining."

Mining machines, mining farms, mining pools, and cloud-rashrate platform build an ecosystem of the digital currency mining industry, among them, mining machine manufacturers design and produce mining machine chips and assemble them into machinery and equipment to sell to the miners, the mine provides suitable mining places for miners (such as more suitable temperature, lower electricity price, etc.). The mining pool participates in mining through the same hashrate of the unified miners and obtains a higher probability of mining. The cloud-hashrate platform sells hashrate to entities which willing to participate in mining through integrated mining machine resources and makes profits through the identity of the mining resource market maker.

Hashrate is very important in the mining ecosystem, hashrate is the ability to mine bitcoins, the faster the mining speed of the mining machine, the higher the hashrate and the more bitcoins can mine.

Comparison of major manufacturers and models

Mining machine manufacturers are located at the most upstream of the industry chain, they are mainly engaged in the research and development and sales of mining machine encryption chips, every action of mining machine manufacturers will affect the minners and other downstream participants in the industry, and even cause changes in the entire digital currency industry. The main players in the market include Nasdaq-listed AGMH (AGMH.US)、EBON INTERNATIONAL (EBON.US)、CANNAN INTELLIGENCE (CAN.US), and the unlisted BITMAIN and BTMICRO In this field, among them, there are both blockchain chip and mining machine research and development capabilities and can be a manufacturer of high-end performance mining machines, Currently, there are only four mining machine manufacturers such as AGMH.US、CAN.US、BITMAIN and BTMICRO. The strength backgrounds of these four manufacturers and the high-end ASIC mining machines they have developed have their own advantages and disadvantages, the representative models are mainly as follows:

CAN.US launched a new model Avalon A1246 in September 2020, with a hashrate of 90TH/S, a wall power consumption of 3420W, and a power efficiency ratio of 38J/Th. This is the first Avalon model to reach 90T Large hashrate model. From the perspective of hashrate, the A1246 is not very competitive, and its power efficiency is relatively inferior to that of models launched by other competitors. But the price is not cheap, according to the latest quotation, the price of this Model is $5118. From the perspective of the company's strength, CAN.US entered the Nasdaq in November 2019 and become the first mining machine listed in China, but it seems to have fallen behind a lot in technology and research and development, the cost-effectiveness of the mining machine is low.

S19 Pro was released by Bitmain at the end of February 2020. The performance has been greatly improved compared with previous models. The hashrate is 110 T±3%, the Wall-power consumption is 3250W±5%, and the power efficiency ratio is 29.5J/Th. It adopts a double-tube design, and dual fans are connected in parallel at the front and rear to exhaust air and dissipate heat. With the increase in the price of Bitcoin, the price of the mining machine has risen from more than $1538.5 in mid-2020 to $8597 now.  Bitmain had serious infighting which affected the company's mining machine business to a certain extent, it once hit the Hong Kong Stock Exchange in 2019, the listing failed due to the expiration of the prospectus.

BITMICRO successively launched 5 different mining machines with different hashrate In April 2020, The chassis of BITMICRO's Shenma-Mining machine adheres to a single-tube design. Among them, the hashrate of M30S++ reaches 112TH/s, the power consumption is 3472W, and the power efficiency ratio is at 31J/Th、the hashrate of M30S++, the power consumption ratio is excellent, but the price is relatively higher, the current price is $9477. BITMICRO's market operation is relatively weak, and most of its sales are mainly domestic distribution, there is a large gap in the overseas market, and it has been repeatedly reported that there is insufficient production capacity and arrears with mining machines.

AGMH.US also launched a high-power mining machine in August this year, the KOl-C16 with the chip adopts SMIC's N+1 process, the overall computing power is 113TH/s, and the Wall-power consumption is 3400W, the power efficiency ratio is 30.9J/Th, which surpasses the best level in the industry. This not only means higher income under the same market but also means stronger anti-risk ability. According to calculations, even with the current hashrate of the entire network, the C16 mining machine currency price is as low as $6,000. Taking into account the decline in the hashrate of the entire network in the bear market, the safety margin is high and the machine currency price can withstand is as low as $3000-$4000, which is only 1/10 of the current price. The market positioning of AGMH's C16 mining machine is public information and its customers are Canadian and American institutions. It is not expected to be affected by too many Chinese policies, it has a larger overseas market advantage compared with other competing companies.

A good mining machine is not only reflected in the strong profitability of the bull market but also reflected in the bear market anti-risk. The mining market is in the era of large hashrate. Only the mining machine with more than 100T hashrate can reduce the impact of currency price fluctuations on the mine. The above four high-end mining machines are all large-power rashrate mining machines, and they have strong competitiveness as a whole.

With China's ban on "Mining", it is a rare strategic shift for energy-rich countries such as the United States, Canada, Russia, and Central and Western Asia. These high-end mining opportunities are expected to be closely watched and continuously purchased by large-scale listed mining companies in the United States and Canada as well as major powerful mining companies. Their order numbers will gradually be seen in the market news, and we will continue to pay attention to the competition of these 4 mining machines, manufacturers that can occupy overseas market will greatly increase market share in the end.