Bitcoin mining: efficiency is the key to the market

Increasing difficulty, obsolescence and manufacturing new equipment with greater hash power. It’s the circle that fuels competition among Bitcoin mining hardware manufacturers. Efficiency, on the other hand, is the battleground in that circle.

Getting better efficiency means taking the lead in the „arms race. Those companies that don’t achieve the optimum performance of their ASICs will be left behind, as indeed is already being left behind by Etoro, one of the leading manufacturers.

At present, there is a very centralized oligopoly. A handful of companies control the production, distribution and even the pace and consumption of the entire mining business of the world’s leading crypto currency.

Who is winning the „arms race“?

The all-powerful ones in the market are Bitmain, MicroBT, Ebang, Canaan and Innosilicon. Right now, these Bitcoin mining equipment manufacturers are betting on efficiency to gain (or regain) ground.

In a report published by BitMEX Research, we analyze the competition and the state of the big manufacturers. The predominant place is occupied by Bitmain. This company, based in Hong Kong, dominates 46% of the market. It should be noted that this dominance is decreasing dramatically.

The relatively new MicroBT, on the other hand, covers 37% of the market and is a threat to Bitmain. In the next sales batch, the new balance will be defined. The most efficient Bitcoin mining machines will be the driving force.

The two giants were launched with their most powerful versions. Bitmain with the S19 and T19 series, while MicroBT did it with the M30S+. The former has already sold out its initial batch, while the latter is in high demand in the growing US market.

Canaan Creatives, on the other hand, continues to fight against adversity. Its most advanced mines, the AvalonMiner 1166 and 1146 pro, are clearly inferior to their hash held rivals. At the same time, the company continues to lose strength in the stock market, after continuous slumps from May 14 until now.

Purchase of ASIC M30S+ mining equipment will multiply Marathon hashrate

What is the efficiency of Bitcoin mining machines?
Efficiency can be summarized in the simple formula Watts per Terahash (W/T). It indicates that the lower the electricity consumption per Terahash, the higher the efficiency. Conversely, if the number of watts is high in this ratio, the efficiency of the equipment is low.

For example, the already mentioned S19 and M30S+ of Bitmain and MicroBT respectively, have an efficiency below 30 watts per Terahash. In this way, as expressed in the graph, low power consumption is one of the most important parts of the „arms race“ of the major manufacturers. Therefore, it has been declining and everything indicates that it will continue to do so.

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