Bull market signal! Demand for Bitcoin mining machines once again exceeds supply

Bitcoin's recent bull market performance has activated demand for new mining equipment, prompting manufacturers to increase production of enough machines to meet demand.

After the global market capitalization of the highest cryptocurrency BTC currency price broke through $10,000 this weekend, the current transaction price has exceeded $11,000 – up nearly 200% since February.

“The surge in bitcoin has led to increased demand and supply shortages,” said Steven Mosher, global sales and marketing director at Avalon mining machine manufacturer and Canaan Creative.

Although he refused to disclose the company's order volume, Mosher said in an e-mail, "The current situation in the industry is a decline in inventory and high demand."

He told CoinDesk: "This seems to be the return to the third quarter of 2017, the fourth quarter, the demand is three times the supply."

At that time, the price of Bitcoin doubled from July to September 2017 and further quadrupled in the last quarter to nearly $20,000.

According to data from TokenInsight, a crypto startup focused on mining and trading research, the rise in currency prices over the past few months has also led to a significant reduction in the new mining machine return cycle.

The company estimates that the average investment return period for most mining equipment in the second quarter has fallen to 60 to 150 days, a significant reduction from the previous 120 to 280 day cycle range.

New mining machine model

In order to seize the new opportunity, Jia Nan Zhizhi launched a new mining machine last month, namely Avalon Miner 1041 (AvalonMiner 1041), which is said to be able to achieve 37 TH / s of power, power consumption is 2,361 watts per hour. In comparison, the older model Avalon 851 (Avalon 851) performs calculations at approximately 14.5 Th / s and consumes 1,450 watts per hour.

Mosher added that due to the high volume of purchase intentions from major customers, bookings for such new model miners have been scheduled for delivery in October.

Similarly, the encryption mining giant Bittland launched an improved version of the Ant Miner S9 (AntMiner S9) model last week, called the Ant Mine S9 SE and the Ant Mining Machine S9k. According to the company's official website, the delivery of the first shipment will be completed by August. More expensive and powerful miner products, such as the M20 (WhatsMiner M20), which was launched by former Centenix chip design director Yang Zuoxing, is attracting more and more buying interest. Yang Zuoxing told CoinDesk that the next batch of M20s will be shipped in October and is currently "almost sold out."

However, Yang Zuoxing also added another important reason why the supply of the industry is difficult to meet the capacity requirements of the mining machine, that is, the supply of chips that can be provided by various upstream suppliers is limited.

"The growth of bitcoin's computing power can't keep up with the price increase." Yang Zuoxing said, "Production capacity is the bottleneck."

Big increase in computing power

In fact, the recovery of mining profits is also reflected in the total amount of computing power used to protect the security of Bitcoin. The total amount of computing power has recently reached the highest level in history.

According to data from BTC.com, the latest one-day and seven-day average net computing power is 65EH/s and 58EH/s, respectively.

Since the end of last year, due to the fall in bitcoin prices, the 14-day average bitcoin mining power has fallen to 36EH/s, and the current level of computing power has risen by about 80%.

Assume that all of these additional calculations come from more widely used miner models, such as the Ant Mine S9 or the Avalon Mine 851, with an average power of about 14 TH / s, which would be equivalent to about 2 million mines. The machine has been mined in the past few months.

Therefore, BTC.com estimates that bitcoin mining difficulty (measuring the difficulty of mathematics to calculate new digital currencies) will increase by 6% at the beginning of the next adjustment cycle, reaching the highest level in history – above 7.8 trillion The level of difficulty.

The skyrocketing bitcoin has led to an increase in demand for new mining machines and a current shortage of mining machines.

Demand for New Bitcoin Miners Is Again Outstripping Supply

This article is compiled from the financial network chain of Finance and Economics from Coindesk, does not represent the financial network chain financial position.

Author: Wolfie Zhao

Original link: https://www.coindesk.com/demand-for-new-bitcoin-miners-is-again-outstripping-supply