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CryptoSuper 500 November 2019

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This is the third list of the Top 50 Cryptocurrency supercomputer mining pools. Over $7 billion of annual production rate across top 8 coins. The total Bitcoin hashing rate is doubling every seven months. China continues to lead as the top mining location.

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CryptoSuper 500 November 2019

  1. 1. The image part with relationship ID rId2 was not found in the file. @OrionX_net CryptoSuper 500 Top 50 Cryptocurrency Supercomputers (EMBARGOED until) November 20, 2019 Stephen Perrenod
  2. 2. @OrionX_net Digital Money Store of value Safe? Unit of account Supply? Medium of exchange Stable? What is it? ©2018 OrionX.net
  3. 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 Most of the current 4000+ coins will prove to be worthless in the long run ª There may be many created to represent shares of real estate, companies, other real assets (security tokens) ª Surprise: your Bitcoin is not in your hardware wallet or paper wallet. That just holds the keys.
  4. 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. 5. @OrionX_net Supercomputing for decentralized Money Cryptocurrency Mining ª How big is the Crypto Mining Market? ª Bitcoin market cap about $157 billion (Nov. 14, 2019) ª Bitcoin daily production = $16 million – money supply inflation ~ 3.6% will cut in half in May, 2020 – 24 hours x 6 blocks per hour x 12.5 coins x $8902 (as of 11/14/19) ª Annual production run rate, Bitcoin, $5.84 billion ª Top 50 Mining Pools produce $7.37 billion annually across 8 coins ª Although Bitcoin is some 2/3 of the market cap of some 4800 coins, it heavily dominates the Mined (Proof of Work) coin category by produced value ª Ethereum #2 daily production 11,500 coins x $284 = $2.1 million (11/14/19) or $0.77 billion per annum
  6. 6. @OrionX_net CryptoSuper Methodology ª We only consider include Proof of Work mined coins, since they are the only ones using significant supercomputing power – Non-mined coins usually use Proof of Stake, Premining (“air drop”), or some 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”. ª We consider the top 10 mined coins, look at pool statistics and then end up with 8 mined coins making the cut 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 Most 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. 7. @OrionX_net Top Coins Hashrate Evolution, Bitcoin Top Host Countries Top Pool Operators Summary Tables
  8. 8. @OrionX_net ª These are the top 10 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 10/31/19 ª Block production for Bitcoin, Ethereum, and Bitcoin Cash: we had information on 90 day average block rates for mining pools available, for other coins, 30 day averages used ª Note the extreme variation in Hashing rates with Bitcoin ~ 100 Exa and Monero at ~ 300 Mega Top Ten Mined Coins Coin Market Cap $B HW Algorithm Block time Block reward New coins / day Hash rate units Bitcoin 148.3 ASIC SHA256 10 min. 12.5 1800 98.01 Exa Ethereum 18.94 ASIC Ethash 15 sec. 2 11520 182.1 Tera Bitcoin Cash 4.069 ASIC SHA256 10 min. 12.5 1800 2.95 Exa LTC 3.47 ASIC Scrypt 2.5 min. 12.5 7200 188.0 Tera Bitcoin SV 1.692 ASIC SHA256 10 min. 12.5 1800 1.48 Exa Monero 0.969 GPU CryptoNight 2 min. 4.87 3506.4 327.6 Mega Dash 0.631 ASIC X11 2.6 min. 1.55 892.8 4.91 Peta Ethereum Classic 0.517 ASIC Ethash 15 sec. 4 23040 9.80 Tera Dogecoin 0.332 ASIC Scrypt 1 min. 10,000 14,400,000 195.0 Tera Zcash 0.28 ASIC Equihash 2.5 min. 10 5760 5.07 Giga
  9. 9. @OrionX_net ª These eight coins had mining pools in the top 50 ª $7.4 billion of annual economic value produced ª 84% of all AEV (annual economic value) for mined coins is in Bitcoin ª 10% is in Ethereum, and the remaining 6% spread across Bitcoin Cash, Litecoin, and four others Top Eight Coins for Mining Pools Coin Top 50 Pools: M$ per year Number entries In Top 50 Percent of Annual Economic Value Bitcoin 6205.6 18 84.1 Ethereum 723.8 9 9.8 Bitcoin Cash 154.1 7 2.1 Litecoin 130.9 7 1.8 Zcash 58.9 3 0.8 Bitcoin SV 60.5 3 0.8 Monero 30.6 2 0.4 Ethereum Classic 12.4 1 0.2 Total 7376.7 50 100
  10. 10. @OrionX_net ª Bitcoin’s hashrate has grown from 0.2 Terahashes when it was 2 years old to now ~ 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 12 (!) over the past decade (Hashrate regressed against # Block years or blockchain length) ª This amounts to 233% compound annual growth ª In Moore’s Law terms, it is a Doubling every 7 months! Hashrate Growth for Bitcoin: Tremendous Block Height Block reward Block Years elapsed Date Hashrate (TeraH/s) log 10 of Hashrate log 10 of Block Year Power law, 3- 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 May 2020 Last 3 years HR ratio 37.09 R^2 0.98 slope 12.20 CAGR 233% intcpt -4.90
  11. 11. @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 (usually combo of China, US, Europe) 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 over one third of the top pools, and with Hong Kong, half Top Host Countries Host Country Number of Top Pools Percent of AEV Annualized M$ China 20 43.8 3234 Global 5 14.7 1082 US, China 3 12.2 897 US 8 10 734 Hong Kong 5 8.2 607 Unknown 4 7.5 550 Other 5 3.7 272 Totals 50 100 7377
  12. 12. @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 ~ 85% of the Top 50 annual economic value creation ª China has 5, USA 1, Hong Kong 1, others unknown or mixed Top Pool Operators Pool Operator Host Country Number of Top Pools Annualized M$ BTC.com China 3 1129 F2Pool Global 4 1059 Poolin US, China 3 897 AntPool China 4 769 ViaBTC Hong Kong 4 523 Unknown n/a 1 469 Huobi.Pool China 1 404 SlushPool US 1 384 BTC.Top China 2 374 SparkPool China 1 234 Totals 24 6,241
  13. 13. @OrionX_net Top 50 Crypto Super List
  14. 14. @OrionX_net Top 50 List of Cryptocurrency Supercomputers First Half: 1-12 Pool, coin, value, host country Rank Pool Coin Monthly M$ Annualized M$ Host Country 1 BTCdotcom Bitcoin BTC 91.20 1,094.5 China 2 F2Pool Bitcoin BTC 62.14 923.3 Global 3 Poolin Bitcoin BTC 69.10 829.2 US, China 4 AntPool Bitcoin BTC 60.61 727.3 China 5 ViaBTC Bitcoin BTC 39.27 471.3 Hong Kong 6 Unknown Bitcoin BTC 39.08 469.0 n/a 7 Huobi Bitcoin BTC 33.69 404.3 China 8 Slush pool Bitcoin BTC 32.01 384.1 US 9 BTCTop Bitcoin BTC 29.48 353.8 China 10 Sparkpool Ethereum ETH 19.49 233.9 China 11 Bitfury Bitcoin BTC 17.21 206.5 Georgia, Iceland 12 Ethermine Ethereum ETH 15.94 191.3 US
  15. 15. @OrionX_net Top 50 List of Cryptocurrency Supercomputers First Half: 13-25 Pool, coin, value, host country Rank Pool Coin Monthly M$ Annualized M$ Host Country 13 F2Pool Ethereum ETH 8.32 99.8 China 14 NanoPool Ethereum ETH 7.24 86.9 Global 15 BytePool Bitcoin BTC 7.00 84.0 Hong Kong 16 1Thash Bitcoin BTC 5.66 67.9 China 17 NovaBlock Bitcoin BTC 5.32 63.8 US 18 Unknown Bitcoin Cash BCH 4.54 54.5 n/a 19 Poolin Litecoin LTC 3.09 37.0 US, China 20 MiningPoolHub Ethereum ETH 3.04 36.5 Global 21 SpiderPool Ethereum ETH 3.01 36.2 China 22 Way1 dot cn Bitcoin BTC 2.94 35.3 China 23 Bitcoin dot com Bitcoin BTC 2.68 32.1 US 24 Poolin ZCash ZEC 2.53 30.4 US, China 25 ViaTBC Bitcoin SV 2.16 26.0 Hong Kong
  16. 16. @OrionX_net Top 50 List of Cryptocurrency Supercomputers Second Half: 26-37 Pool, coin, value, host country Rank Pool Coin Monthly M$ Annualized M$ Host Country 26 Bixin Bitcoin BTC 2.14 25.7 China 27 BTCdotcom Bitcoin Cash BCH 1.82 21.9 China 28 F2Pool Litecoin LTC 1.74 20.9 Global 29 BTCTop Bitcoin Cash BCH 1.67 20.1 China 30 Coingeek Bitcoin SV 1.67 20.0 Canada 31 Litecoinpool Litecoin LTC 1.54 18.5 US, EU 32 SupportXMR Monero XMR 1.53 18.3 US 33 Bitclub Bitcoin BTC 1.41 17.0 US 34 Okpool Bitcoin BTC 1.38 16.5 China 35 qq4qnu Bitcoin Cash BCH 1.35 16.2 China 36 Bitcoin dot com Bitcoin Cash BCH 1.27 15.3 US 37 F2Pool ZCash ZEC 1.23 14.8 Global
  17. 17. @OrionX_net Top 50 List of Cryptocurrency Supercomputers Second Half: 38-50 Pool, coin, value, host country Rank Pool Coin Monthly M$ Annualized M$ Host Country 38 Ltcbtctop Litecoin LTC 1.22 14.6 China 39 12VASaej Bitcoin SV 1.21 14.5 n/a 40 0xd224.. Ethereum ETH 1.20 14.3 Germany 41 AntPool Bitcoin Cash BCH 1.18 14.1 China 42 ViaBTC Litecoin LTC 1.16 14.0 Hong Kong 43 AntPool ZCash ZEC 1.15 13.8 China 44 AntPool Litecoin LTC 1.14 13.7 China 45 PandaPool Ethereum ETH 1.05 12.6 China 46 0xaa5c.. Ethereum ETH 1.03 12.4 n/a 47 Ethermine Ethereum Classic ETC 1.03 12.4 US 48 MineXMR Monero XMR 1.02 12.3 France 49 BTCdotcom Litecoin LTC 1.02 12.2 China 50 ViaBTC Bitcoin Cash BCH 1.00 12.0 Hong Kong
  18. 18. The image part with relationship ID rId2 was not found in the file. @OrionX_net Thank you! orionx.net/blog Stephen Perrenod
  19. 19. @OrionX_net Mining Economics and Environmental Impact ª Bitcoin is environmentally friendly as compared to, say, precious metals mining ª Summary of latest Coinshares Bitcoin Mining Report here: ª https://medium.com/coinshares/surprise-majority-of-btc-energy-sourced- from-hydro-wind-solar-49f73839aec6 ª 74% of crypto mining is powered by renewable electricity sources or 4 times the world average ª Bitcoin break even currently around $5700 with 5 cent / KWh electricity and other costs – Average profits of $5.4 million per day for Bitcoin when $8700, nearly $2 billion per year ª Focus on cheap hydropower regions: Southwest China, Eastern Canada, Pacific Northwest, Caucasus region, Scandinavia
  20. 20. @OrionX_net References ª Overall: coinmarketcap.com, coinwarz.com, cryptoslate.com ª BTC: btc.com ª ETH: btc.com, etherscan.io ª BCH: btc.com, cash.coin.dance ª LTC, ZEC, XMR, DASH: miningpoolstats.stream ª Cryptocurrency topics: orionx.net/blog

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