Bitcoin prices are rising, and miners are in short supply

According to Coindesk's June 26 report, the price of Bitcoin has risen nearly 200% since February, and its current transaction price is around $12,500. The market value is 60% of the total market value of cryptocurrencies, which leads to Bitcoin. The demand for mining machines has grown dramatically and forced manufacturers to produce enough machines to meet the needs of buyers.

Screen Shot 2019-06-26 at 3.51.13 PM (Source: coindesk )

Steven Mosher, global sales and marketing director for Canaan Creative, Avalon mining machine manufacturer, said:

Although the recent increase in bitcoin prices has led to an increase in demand for mining machines, the supply of mining machines has not been sufficient.

Mosher declined to disclose the company's order, but he also said to Coindesk in an email:

The current situation in the industry is that the stock of mining machines is declining and the demand is very high. It feels like going back to the third and fourth quarters of 2017, when the demand for mining machines was three times the supply.

In 2017, the price of Bitcoin nearly doubled between July and September, and quadrupled in the following three months to nearly $20,000.

Data from TokenInsight, a cryptocurrency startup focused on mining and trading research, shows that bitcoin's price increases over the past few months have also caused the cost of new miners to drop dramatically. The company estimates that the average return period for most miners in the second quarter of 18 years has fallen to 60 to 150 days compared to the previous 120 to 280-day return period.

New model

In order to seize this new opportunity, Canaan launched a new mining model last month, the AvalonMiner 1041, which claims that the model can achieve 37 terahertz (TH/s) per second. The power is 2,361 watts per hour.

In comparison, the company's old model, the Avalon 851, has an estimated power of 14.5 TH/s and consumes 1,450 watts per hour.

Mosher added that since the demand for mining machines is mainly from major customers, orders for new models of the company have been shipped to October.

At the same time, cryptocurrency mining giant Bitmain also introduced the improved version of AntMiner S9 – AntMiner S9 SE and S9k last week. According to the company's website, the first batch of miners will not be shipped until August.

Nowadays, even more expensive and more powerful products (such as the WhatsMiner M20 launched by the former bitmain chip design director Yang) have attracted the interest of many buyers.

Yang told CoinDesk that the next batch of M20s is scheduled to ship at the end of October and is currently in a state of “almost sold out”.

But Yang added that another important reason why the chip industry's supply is difficult to keep up with demand is that chip supply from different suppliers is limited and capacity is difficult to meet demand.

He said:

The growth of bitcoin hash rate cannot keep pace with its price increase, and capacity is the main bottleneck.

Bitcoin's main network's hash rate hit a new high

The surge in demand for mining machines is also reflected in the overall computing power of the Bitcoin network. The hash rate of the Bitcoin network has reached a record high. Hash-rate (Source: blockchain.info )

According to the BTC.com data, the average hash rate of Bitcoin for one day and seven days is 65 million TH/s and 5800 TH/s, respectively.

Since the bitcoin price fell at the end of last year, the average hash rate of Bitcoin for 14 days has fallen to 36 million TH/s, but it has now increased by nearly 80%.

Assume that all of these extra calculations come from newly mined mining machines (such as the AntMiner S9 or Avalon 851, which have an average hash capacity of about 14TH / s), which means that in the past few months, Approximately 2 million mining machines were newly launched for Bitcoin mining.

Therefore, BTC.com estimates that at the beginning of the next adjustment cycle, the difficulty of mining bitcoin will further increase by 6%, reaching an all-time high of 78,000 TH/s.