Announcing the New CryptoSuper500 List
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This document analyzes the top cryptocurrency mining pools and their production value. It finds that the top 30 mining pools produce over $15 million in coins daily (over $5 billion annually). The top pools are located in China (14 pools), USA (9 pools), and Hong Kong (2 pools). The largest pool by value is BTC.com in China mining Bitcoin. In total, China-based pools account for almost half the daily production value, while US pools account for almost one third.
Announcing the New CryptoSuper500 List
- 1. @OrionX_net CryptoSuper-30 Top Cryptocurrency Supercomputers (Embargoed until) November 10, 2018 Stephen Perrenod
- 2. @OrionX_net Digital Money Store of value Safe? Unit of account Supply? Medium of exchange Stable? What is it? ©2018 OrionX.net
- 3. @OrionX_net OrionX position Money 3.0 ª Cryptocurrencies (at least Bitcoin) represent Money 3.0 0.x – shells, beads 1.0 – gold and silver coins 2.0 – national fiat currencies 3.0 – Decentralized digital Money stored in the Internet Others might say they are simply digital assets ª Many or most of the current 2000+ coins will prove to be worthless in the long run ª There may be many created to represent shares of real estate, companies, other paper assets (security tokens) ª Surprise: your Bitcoin is not in your hardware wallet or paper wallet. That just holds the keys.
- 4. @OrionX_net ª It’s not either/or, it’s both ª They are each layers in a stack ª Blockchain is the triple entry ledger of chained transaction blocks: sender wallet, blockchain, receiver wallet ª A consensus algorithm (e.g. Nakamoto) that enforces security and prevents double spending is required: Mining ª An incentive is required to cause the algorithm to be computed and transactions added to the chain: Cryptocurrency/Coin ª Smart contracts and second layer chains extend the functionality Blockchain or Bitcoin? Purpose Layer Extensibility Smart Contracts, Second Layer channels Economic Incentive for recording Transactions Crypto Coin Security & Anti- Counterfeiting Consensus Algorithm (Proof of Work) Immutable Record of Transactions Blockchain
- 5. @OrionX_net Supercomputing for decentralized Money Cryptocurrency Mining ª How big is the Crypto Mining Market? ª Bitcoin market cap about $111 billion (October 30, 2018) ª Bitcoin daily production = $11.4 million – money supply inflation ~ 4% will cut in half in 2020 – 24 hours x 6 blocks per hour x 12.5 coins x $6330 (as of 10/30/18) ª Annual production run rate, Bitcoin, $4.16 billion ª Although Bitcoin is just over half of the market cap of some 2,090 coins, it dominates the Mined (Proof of Work) coin category ª Ethereum #2 daily production 17,280 coins x $198 = $3.42 million (10/30/18) or $1.25 billion per annum
- 6. @OrionX_net CryptoSuper Methodology ª Take the top dozen coins by market cap (supply x price), throw out the non-mined coins – We are left with six: Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Monero, Dash – Non-mined coins usually use Proof of Stake, Premining (“air drop”), or some Byzantine Fault Tolerance algorithm. They either have to start with mining or air drop (worse than fiat!) ª Then look at the statistics for the top mining pools for each coin ª The mining protocols and hash rates vary in very large degree between coins – e.g. top pool for Bitcoin is in the Exahash/s and the top pool for Monero is in the Megahash/s (almost 12 orders of magnitude lower) ª Many coins (Bitcoin, Ethereum) require ASICs to be profitably mined, others (including Monero) can run on GPUs ª We compare mining pools by using the economic value of coins produced per day = number of blocks mined x number of coins per block x price per coin
- 7. @OrionX_net Top Coins Top Host Countries Top Pool Operators Summary Tables
- 8. @OrionX_net ª Daily value of mined coins is based on a 7 day average of winning block production ª Except for Bitcoin and Bitcoin Cash we had 30 day averages available ª Annualized column is the annual run rate extrapolated from recent daily average ª Dash had no pools in top 30 ª Over $5 billion of economic value is created per year (some $15 million per day) – 99% of the Bitcoin production is in the top 17 pools; 80% of Ethereum is produced in the top 5 pools Top Coins Coin Number of Top Pools Daily Value M$ Annualized M$ Bitcoin 17 11.31 4,129 Ethereum 5 2.77 1,010 Litecoin 5 0.64 234 Bitcoin Cash 2 0.38 140 Monero 1 0.10 37 Totals 30 15.21 5,551
- 9. @OrionX_net ª We ranked the pools for each of the 5 top coins per coin ª Pools are multinational since anyone can contribute compute power to any pool ª We list by host country, the country that hosts the pool ª We then interleaved the list to get the top pools by $ value of production ª China has almost half, and the USA has almost one third of the top pools Top Host Countries Host Country Number of Top Pools Daily Value M$ Annualized M$ China 14 7.18 2,621 USA 9 4.53 1,653 Hong Kong 2 1.75 638 Georgia Republic 1 0.20 71 Antigua 1 0.19 69 Other 3 1.36 497 Totals 30 15.21 5,550
- 10. @OrionX_net ª Often the same pool is mining multiple coins ª We aggregate the coins under a particular operator ª We also list the host country ª These are the Top 6, responsible for ~ 60% of the Top 30 economic value creation ª China has 3, USA 2, Hong Kong 1 Top Pool Operators Pool Operator Host Country Number of Top Pools Daily Value M$ Annualize d M$ BTC.com China 1 1.901 694 Antpool Hong Kong 2 1.747 638 F2Pool China 3 1.585 579 ViaBTC USA 2 1.329 485 BTC.Top China 2 1.222 446 Slushpool USA 1 1.215 444 Totals 11 9.000 3,285
- 11. @OrionX_net Top 30 Crypto Super List
- 12. @OrionX_net Rank Pool Host Country Coin Daily M$ Annual M$ 1 BTC.com China Bitcoin 1.901 694 2 Antpool Hong Kong Bitcoin 1.611 582 3 SlushPool USA Bitcoin 1.215 444 4 ViaBTC USA Bitcoin 1.215 444 5 BTC.Top China Bitcoin 1.096 400 6 unknown n/a Bitcoin 1.033 377 7 F2Pool China Bitcoin 1.008 368 8 Ethermine USA Ethereum 0.906 331 9 Poolin China Bitcoin 0.792 289 10 SparkPool China Ethereum 0.763 278 Top 10 List of Cryptocurrency Supercomputers Pool, coin, value, host country
- 13. @OrionX_net Rank Pool Host Country Coin Daily M$ Annual M$ 11 F2Pool China Ethereum 0.446 163 12 Nanopool USA Ethereum 0.351 128 13 Miningpoolhub USA Ethereum 0.303 111 14 BitClub USA Bitcoin 0.239 87 15 unknown n/a Bitcoin Cash 0.233 85 16 DPool China Bitcoin 0.233 85 17 Huobi.pool China Bitcoin 0.219 80 18 BitFury Georgia Bitcoin 0.195 71 19 Coingeek Antigua Bitcoin Cash 0.188 69 20 Bixin China Bitcoin 0.152 55 Top 11-20 List
- 14. @OrionX_net Rank Pool Host Country Coin Daily M$ Annual M$ 21 Antpool Hong Kong Litecoin 0.135 49 22 F2Pool China Litecoin 0.131 48 23 BTC.Top China Litecoin 0.126 46 24 wayi.cn China Bitcoin 0.114 42 25 ViaBTC USA Litecoin 0.114 42 26 BWPool China Bitcoin 0.103 38 27 nanopool USA Monero 0.101 37 28 58Coin China Bitcoin 0.098 36 29 litecoinpool Canada Litecoin 0.097 35 30 bitcoin.com USA Bitcoin 0.087 32 Top 21-30 List
- 16. @OrionX_net Energy Costs: Direct costs only, Energy per $ value mined Krause, M.J. and Tolaymat, T. 2018 “Quantification of energy and carbon costs for mining cryptocurrencies” Nature Sustainability However, annual Gold mined is $122 billion, much greater than $4 billion of Bitcoin or $1 billion of Ethereum, Aluminum 63 megatons at $2000 = $126 billion annual production Key: 4 cryptos on left Aluminum, Copper, Gold on right, also PGM - platinum group REO - rare earths