4.3 Million Bitcoin Mining Equipment in Service, Bitcoin Hashrate to Hit 120E by Year End
The bitcoin network currently has a whopping of 4.3 million mining machines run on it, yet the market is still seeing an increasing level of buying interest with 1.5 million mining equipment in want, according to Innosilicon, a China-based leading ASIC miner manufacturer.
The surge in bitcoin price this year has juiced demand for new mining equipment, putting pressure on manufacturers to produce enough machines to satiate buyers. Apart from the bitcoin rally, factors such as growing mining difficulty and approaching bitcoin’s 2020 halving are boosting the market for more bitcoin mining rigs. Wang Shenglin, sales director at Innosilicon, said at the New Era Mining Industry Summit in Chengdu that they estimated the market gap at 1.5 million units.
As more ASICs come online, Bitcoin hashrate has recently seen a spike nearing 100E (quintillion) milestone. If the market demand (aforementioned 1.5 million miners) is fully satisfied, the bitcoin network’s hashrate will increase by a whopping 75E, assuming all are 50T miners. Yang Zuoxing, founder of bitcoin miner maker Whatsminer, estimated that bitcoin hash rate would hit 120E by the end of this year based on the current production capacity of miner makers.
But this ex-Bitmain chip design director didn’t think the industry could keep up the momentum in mining machine development. He said that the power consumption of next-gen miners would be reduced by only 10%-20% (a significant drop from nowadays’ 50%), which while could keep in service for a longer time – 4-5 years in the future.
Yang went on with the prediction about the future of mining industry, believing that bitcoin miners in mobile containers would account for nearly half of the total number in the coming 3-5 years as a result of their frequent migration to places where lower electricity is accessible, like the case that Chinese miners relocate their mining device to Sichuan where abundant and cheap hydropower is available once the wet season begins. He also predicted that water-cooled miners would be a mainstream in the next 5 years, taking a lion share – 80% maybe, as such miners are easy and cost less to maintain and repair with longer lifespan and much less noise.
Not only optimistic about the future of crypto mining, these bitcoin mining giants present at the country’s largest conference for bitcoin miners are also quite bullish on bitcoin price. Canaan (Avalon maker)’s chairman Kong Jianping believed it was only a matter of time for bitcoin to break $100,000; Whatsminer’s Yang predicted that bitcoin price would hit $110,000 in 2021 and could ultimately reach $1 million.