Enhanced bitcoin mining: high difficulty adjustment, team consolidation, less centralized in China


It has been nearly 37 days since the infamous Bitcoin halving took place on Monday, May 11, 2020. On June 16, the Bitcoin network encountered a major adjustment difficulty that caused mining. bitcoin is getting tougher and slows down the pace of release because the generation block has slowed down further.In addition, a recent research report predicts that the ASA SHA256 mining industry will grow more consolidated in the future.

The difficulty of the Bitcoin network increased to 15.7 billion
One of the most lucrative but also one of the most competitive activities in the cryptocurrency industry is bitcoin mining. Thousands of individuals and organizations around the world take advantage of application-specific integrated circuits (ASICs) or custom chips to mine bitcoins using the SHA256 consensus algorithm.

Enhanced bitcoin mining: high difficulty adjustment, team consolidation, less centralized in China

As more people participate in the mining, the overall hashrate increases, but every two weeks, the difficulty adjustment algorithm (DAA) makes mining more difficult. On the opposite side of the spectrum, if miners surrender and leave the Bitcoin network, DAA will adjust downward to make it easier to mine bitcoins. On June 16, 2020, the Bitcoin (BTC) network saw a difficult adjustment grow to a height of 15,784T at block height of 635,040.

Enhanced bitcoin mining: high difficulty adjustment, team consolidation, less centralized in China

This makes block creation slower if even more miners leave the network before adjusting the next difficulty. At the time of writing, there are 15 hash mining groups at the BTC network and F2pool is still the most dominant group with 21.3% of the network's hash rate.

Enhanced bitcoin mining: high difficulty adjustment, team consolidation, less centralized in China

F2pool is followed by Poolin, Btc.com, Antpool, 58coin, Huobi, Binance, Slush, Lubian, Viabtc, Okex, Btc.top, Novablock, Spiderpool and a few unknown groups. The number of groups since halving has dropped by at least 40% since halving Bitcoin on May 11. A report was published on June 16, by Bitmex Research discussing the supreme topic. of ASIC.

Supreme ASIC and unity
Bitmex researchers' findings show that the mining industry will consolidate even more than it is today. Industry consolidation continues to be possible in both ASIC manufacturing and mining farm operations, writes Bit Bitex. Analysts may also think that it is possible that only 2 to 3 players will survive for longer, which are related to mining activities. The researchers also discussed the top four mining rig manufacturers based in China - Bitmain, Microbt, Canaan and Ebang.

Enhanced bitcoin mining: high difficulty adjustment, team consolidation, less centralized in China

Today Today's competition is growing, with strong products from new players like Microbt gaining traction and eating into Bitmain's lead, the report highlights. Micro Microbt's share of the 2019 rib is said to be around 35%. However, Bitmain is still the number one player and a reliable force. Based on Bitmex research, the findings note the five predictions including:

Competition has tightened in ASIC manufacturing and Bitmain's dominance, has dropped significantly in the past 18 months.
The ASIC manufacturing industry will continue to consolidate. We think it's likely that only 2 to 3 players will survive for longer.
The mining farm industry is also increasingly consolidated after half. With new investments coming from a small number of well-funded institutions.
The service life of the ASIC miner is likely to be significantly extended and the current generation of products may remain operational for several years.
While China still dominates ASIC production, geographically, China is losing a stake in the mining farm business to Europe and North America.


More and more mining operations are moving away from China
On June 17, the Bitcoin network hashrate (BTC) increased to 120 exahash per second despite difficult adjustment adjustments. Regional correspondent from China, Vincent He, explained on Wednesday that regional mining companies are mining bitcoin as a sideline activity rather than a comprehensive venture these days. The 8btc journalist interviewed a small mining farm operator, Mr. Huang said that the mining operations on the side are more trouble than a relaxing option.

For a small miner like me, just investing in electricity bills and waiting for profits, even for large mining companies in the future, Mr. Huang revealed.

Enhanced bitcoin mining: high difficulty adjustment, team consolidation, less centralized in China

Basically, the higher difficulty will hurt the smaller operations that make miners with thin margins and need to sell bitcoins as soon as they get them. Moreover, mining operations seem to move westward and leave concentrated areas like China. In the report published on Tuesday, Microbt's marketing director Elsa Zhao, said that shipments are moving out of the area at an exponential rate.

Our customer base is increasingly leaving China, said Elsa Elsa Zhao. Since halving, the return on investment is on the rise, now longer than six months, based on current difficulty and price. At the same time, the average customer size is now increasing significantly, customers now have larger amounts of money and are no longer small businesses or individuals, she added.

What do you think about the Bitcoin network Adjust the difficulty level higher and predict the consolidation of mining operations? Let us know in the comments below.