Top 50 Cryptocurrency Supercomputers, June 2020
0 likes787 views
The document discusses the evolution of cryptocurrencies, defining them as 'money 3.0' and presenting their market dynamics, particularly focusing on Bitcoin and Ethereum. It provides insights into cryptocurrency mining, estimating the annual economic value produced by top mining pools and the growth of Bitcoin's hashrate. The report emphasizes the complexity of mining protocols and the dominance of Bitcoin in the market, along with an overview of the top mining pools and their production values.
Top 50 Cryptocurrency Supercomputers, June 2020
- 1. @OrionX_net June 22, 2020 Stephen Perrenod CryptoSuper 500 Top 50 Cryptocurrency Supercomputers
- 2. @OrionX_net Digital Money Store of value Safe? Unit of account Supply? Medium of exchange Stable? What is it? Money in the Internet 500 year advance in accounting (triple-entry ledger) ©2020 OrionX.net
- 3. @OrionX_net 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 Most of the current 5000+ coins will prove to be worthless in the long run ª Surprise: your Bitcoin is not in your hardware wallet or paper wallet. That just holds the keys. OrionX position Money 3.0 ©2020 OrionX.net
- 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, it also enforces a monetary policy 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? ©2020 OrionX.net ª 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 Supercomputer Market? ª Method: We estimate the annual economic value of mined crypto ª Bitcoin market cap about $175 billion (June 17, 2020; 18.4 million BTC at $9500) ª Bitcoin daily production = $8.6 million – money supply inflation ~ 1.8% was cut in half in May, 2020 – 24 hours x 6 blocks per hour x 6.25 coins x $9500 ª Annual production run rate, Bitcoin, $3.1 billion ª Top 50 Mining Pools produce $4.8 billion annually across top 8 mined coins ª Bitcoin is some 2/3 of the market cap of some 5500 coins, it similarly dominates the Mined (Proof of Work) coin category by produced value ª Ethereum #2 daily production 11,520 coins x $233 = $2.7 million, or $1 billion per annum ©2020 OrionX.net
- 6. @OrionX_net CryptoSuper Methodology ª We only consider Proof of Work mined coins, since they are the only ones using significant supercomputing power – Non-mined coins usually use Proof of Stake, Pre-mining (“air drop”), or other Byzantine Fault Tolerant algorithm. They either have to start with mining or air drop. – The US $ started out as Proof of Work (mining, minting) then switched to Proof of Stake (paper certificates against gold, silver) and now is an “air drop” of sorts, created by banks when new loans are made. 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 Gigahash/s (11 orders of magnitude lower) ª Most coins (Bitcoin, Ethereum) require ASICs to be profitably mined, some 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 ©2020 OrionX.net
- 7. @OrionX_net Top SHA-256 Mining Rigs, Top Coins Hashrate Evolution, Bitcoin Top Host Countries Top Pool Operators Summary Tables
- 8. @OrionX_net ª Top 10 Crypto mining rigs for SHA- 256 (Bitcoin’s) PoW algorithm ª Terahash/sec rating is how fast they generate solution guesses to crypto puzzle, of order 100 TH/s ª It would take 1,000,000 of top-rated Antminer S19 Pro ASIC=based rigs to produce the aggregate hash power from all Bitcoin mining ª Four brands in top 10, all Chinese ª Antminer from Bitmain #1, followed by Whatsminer systems ª Gross margin estimates provided for 5 cent and 1 cent power (per kW- hour). Generally 3 cent is the cheapest power, but yes 1 cent power possible: flared natural gas access and load leveling shut-in kickbacks during electric demand peaks make this possible. ª Only electricity costs subtracted for gross margin in table, there are other operating costs and the capex for the rigs which are priced in $2K to $3K range and have < 24 month economic lives. Top Bitcoin Mining Rigs (SHA-256) ©2020 OrionX.net ª Mining Rig TH/s Watts TH/s per kW Gross Margin $/day (5 cent power) Gross Margin $/day (1 cent power) Antminer S19 Pro 110 3250 33.8 6.22 9.27 Antminer S19 95 3250 29.2 4.84 7.90 Whatsminer M30S 86 3268 26.3 3.99 7.07 8 Nano Pro 76 4000 19.0 2.19 5.98 Antminer S17+ 73 2920 25.0 3.21 5.97 Tardis 80 6300 12.7 -0.24 5.80 Whatsminer M31S 70 3220 21.7 2.58 5.62 Whatsminer M20S 68 3360 20.2 2.23 5.41 Antminer S17e 64 2880 22.2 2.43 5.26 Antminer T17+ 64 3200 20.0 2.36 5.08
- 9. @OrionX_net ª Bitcoin’s hashrate has grown from 0.2 Terahashes when it was 2 years old to over 100 Exahashes ª Over 8 orders of magnitude ª A BlockYear is 52,500 blocks each of about 10 minutes, and is approximately equal to a calendar year ª The Hashrate has grown as a power law of slope 11 (!) over the past decade (Hashrate regressed against # Block years or blockchain length) ª This amounts to 197% compound annual growth ª Far beyond Moore’s Law, it is a Tripling every year Hashrate Growth for Bitcoin: Tremendous ª Block Height Block reward Block Years elapsed Date Hashrate (TeraH/s) log 10 of Hashrate log 10 of Block Year Power law, 4-year interval 105,000 50 2 2011-01-28 0.166 -0.78 0.30 131,250 50 2.5 2011-06-16 7.705 0.89 0.40 157,500 50 3 2011-12-14 8.249 0.92 0.48 183,750 50 3.5 2012-06-09 12 1.08 0.54 210,000 25 4 2012-11-28 25 1.40 0.60 236,250 25 4.5 2013-05-15 87 1.94 0.65 262,500 25 5 2013-10-09 1564 3.19 0.70 7.82 288,750 25 5.5 2014-03-03 29,033 4.46 0.74 9.60 315,000 25 6 2014-08-11 156,187 5.19 0.78 14.83 341,250 25 6.5 2015-01-31 296,921 5.47 0.81 18.49 367,500 25 7 2015-07-29 386,597 5.59 0.85 19.37 393,750 25 7.5 2016-01-17 766,473 5.88 0.88 17.49 420,000 12.5 8 2016-07-09 1,554,081 6.19 0.90 13.15 446,250 12.5 8.5 2017-01-02 2,420,682 6.38 0.93 9.35 472,500 12.5 9 2017-06-23 5,145,068 6.71 0.95 8.46 498,750 12.5 9.5 2017-12-11 12,845,067 7.11 0.98 9.90 525,000 12.5 10 2018-05-29 33,710,000 7.53 1.00 12.10 551,250 12.5 10.5 2018-11-24 41,483,900 7.62 1.02 12.59 577,500 12.5 11 2019-05-24 52,657,000 7.72 1.04 12.26 603,750 12.5 11.5 2019-11-14 89,789,000 7.95 1.06 11.92 630,000 6.25 12 2020-05-11 121,040,000 8.08 1.08 11.19 Last 4 years HR ratio 77.62 R^2 0.97 slope 12.16 CAGR 197% intcpt -4.88
- 10. @OrionX_net ª These are the top 8 coins mined with Proof of Work, by market cap ª Only mined coins use supercomputer class computational power ª All Snapshots on hashing rates, block production, were taken as of 5/31/20 ª Hash rates for Bitcoin, Ethereum: we used average monthly totals, for others the recent weekly hash rate ª Note the extreme variation in Hashing rates with Bitcoin ~ 100 Exa and Monero at ~ 1 Giga Top Eight Mined Coins (5/31/20 snapshot) ©2020 OrionX.net ª Coin HW Algorithm Block time Block subsidy New coins / day Hash rate units Bitcoin ASIC SHA256 10 min. 6.25 900 114.5 Exa Ethereum ASIC Ethash 15 sec. 2 11520 190.7 Tera Bitcoin Cash ASIC SHA256 10 min. 6.25 900 2.63 Exa LTC ASIC Scrypt 2.5 min. 12.5 7200 261.0 Tera Bitcoin SV ASIC SHA256 10 min. 6.25 900 1.66 Exa Monero GPU CryptoNight 2 min. 2.15 1548 1.40 Giga Ethereum Classic ASIC Ethash 15 sec. 4 23040 8.65 Tera Zcash ASIC Equihash 1.25 min. 5 5760 5.66 Giga
- 11. @OrionX_net ª These eight coins had mining pools in the top 50 ª $4.8 billion of annual economic value produced (decreased from $7.4 billion due to Bitcoin Halving in May, 2020) ª 66% of all AEV (annual economic value) for mined coins is in Bitcoin ª 24% is in Ethereum, and the remaining 10% spread across six others Top Eight Coins for Mining Pools ©2020 OrionX.net ª Coin Top 50 Pools: M$ per year Number entries In Top 50 Percent of Annual Economic Value Bitcoin 3166 15 65.8 Ethereum 1167 16 24.2 Litecoin 123 6 2.6 Zcash 113 4 2.3 Bitcoin Cash 81 3 1.7 Bitcoin SV 65 2 1.4 Ethereum Classic 61 2 1.3 Monero 38 2 0.8 Total 4814 50 100
- 12. @OrionX_net ª We ranked the top 50 pools for each of the eight top coins ª Pools are in fact multinational since anyone can contribute compute power to any pool ª This is a list by host country ranking for AEV, some are Mixed ª Global includes US, China, and Europe within the same pool ª We then interleaved the list to get the top pools by $ value of production ª China has one third of the AEV, down from over 40%, US has increased to 18% Top Host Countries ©2020 OrionX.net ª Host Country Number of Top Pools Percent of AEV Annualized M$ China 19 32.1 1546 Global 17 32.7 1573 US 6 18.2 875 Hong Kong 5 12.9 623 Europe 1 3.6 174 Taiwan 1 0.2 10 Other 1 0.3 14 Totals 50 100 4,814
- 13. @OrionX_net ª Often the same pool is mining multiple coins ª We aggregate the coins mined under a particular operator ª We also list the host country ª These are the Top 10, responsible for ~ 81% of the Top 50 annual economic value creation ª China has 5, US 1, Hong Kong 1, others global or mixed Top Pool Operators ©2020 OrionX.net ª Pool Operator Host Country Number of Top Pools Annualized M$ F2Pool Global 5 832 Poolin US, China 4 614 AntPool China 3 492 BTCdotcom Global 1 442 SparkPool China 1 370 Ethermine US 2 291 ViaBTC Hong Kong 4 258 58Coin&1THash China 1 228 OkExPool China 2 203 SlushPool China 1 186 Totals 24 3,915
- 14. @OrionX_net Top 50 Crypto Super List, by Coin
- 15. @OrionX_net Top Bitcoin Mining Pools: Pool, Monthly and Annualized revenue (M$), Host country ©2020 OrionX.net Rank Pool Coin Monthly M$ Annualized M$ Host Country 1 F2Pool BTC 55.06 699.84 Global 2 Poolin BTC 42.35 515.26 US, China 3 AntPool BTC 37.46 455.74 China 4 BTCdomcom BTC 36.29 441.53 Global 5 58Coin&1Thash BTC 18.77 228.32 China 6 ViaBTC BTC 17.52 213.21 Hong Kong 7 OkExPool BTC 16.72 203.44 Hong Kong 8 SlushPool BTC 14.31 174.12 Europe 9 HuobiPool BTC 14.09 171.46 China 10 Lubian BTC 14.09 171.46 Hong Kong 11 BinancePool BTC 8.25 100.39 China 12 BTCdotTop BTC 6.94 84.40 China 13 NovaBlock BTC 3.87 47.08 US, Canada 14 SpiderPool BTC 1.90 23.99 China 15 WAYIdotCN BTC 0.80 9.77 China
- 16. @OrionX_net Top Ethereum Mining Pools: Pool, Monthly and Annualized revenue (M$), Host country ©2020 OrionX.net Rank Pool Coin Monthly M$ Annualized M$ Host Country 1 SparkPool ETH 30.44 370.41 China 2 Ethermine ETH 21.93 266.80 US 3 F2Pool2 ETH 9.26 112.71 Global 4 NanoPool ETH 7.73 94.03 Global 5 SpiderPool ETH 5.95 72.36 China 6 Poolin ETH 3.56 43.26 Global 7 MiningPoolHub ETH 2.50 30.42 Global 8 Hiveon ETH 2.20 26.80 Global 9 BeePool ETH 1.67 20.28 China 10 Comining ETH 1.41 17.15 Global 11 Pandaminer ETH 1.28 15.56 China 12 Huobipool ETH 1.26 15.35 China 13 PoolBTC ETH 1.19 14.51 Global 14 XNPool ETH 1.13 13.75 China 15 FirePool ETH 0.88 10.76 China 16 GPUmine ETH 0.79 9.58 Taiwan
- 17. @OrionX_net Top Litecoin, Zcash, Bcash Mining Pools: Pool, Coin Monthly and Annualized revenue (M$), Host country ©2020 OrionX.net Rank Pool Coin Monthly M$ Annualized M$ Host Country 1 Poolin LTC 1.88 22.86 Global 2 F2Pool LTC 1.60 19.43 Global 3 ViaBTC LTC 1.18 14.35 Hong Kong 4 PoolBTC LTC 1.10 13.38 Global 5 LitecoinPool LTC 0.89 10.84 Global 6 AntPool LTC 0.83 10.06 China Rank Pool Coin Monthly M$ Annualized M$ Host Country 1 Poolin ZEC 2.66 32.31 Global 2 F2Pool ZEC 1.16 14.06 China 3 SlushPool ZEC 0.94 11.39 US 4 AntPool ZEC 0.93 11.33 China Rank Pool Coin Monthly M$ Annualized M$ Host Country 1 AntPool BCH 2.15 26.18 China 2 unknown BCH 1.16 14.15 n/a 3 ViaBTC BCH 0.79 9.60 Hong Kong
- 18. @OrionX_net Top Ethereum Classic, Bitcoin SV, Monero Mining Pools: Pool, Coin Monthly and Annualized revenue (M$), Host country ©2020 OrionX.net Rank Pool Coin Monthly M$ Annualized M$ Host Country 1 Ethermine ETC 1.96 23.85 US 2 MiningPoolHub ETC 0.84 10.17 Global Rank Pool Coin Monthly M$ Annualized M$ Host Country 1 VIABTC BSV 1.72 20.89 Hong Kong 2 F2Pool BSV 1.30 15.80 China Rank Pool Coin Monthly M$ Annualized M$ Host Country 1 MinesXMR XMR 1.10 13.36 Global 2 Support XMR XMR 0.84 10.22 US
- 19. @OrionX_net June 22, 2020 Stephen Perrenod OrionX.net/blog Thank you!
- 20. @OrionX_net References ª Overall: coinmarketcap.com, coinwarz.com, cryptoslate.com ª BTC: btc.com, blockchain.com ª ETH: btc.com, etherscan.io ª BCH: btc.com, cash.coin.dance ª Others: miningpoolstats.stream ª Cryptocurrency topics: orionx.net/blog ª Top Cryptocurrency Supercomputers November 2019, slide presentation ª The Brutal Efficiency of Crypto Mining, https://medium.com/the-capital/the-brutal- efficiency-of-crypto-mining-far-beyond-moores-law-92fa90e617e0