Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Top Cryptosupers jun2021

This is the Sixth semiannual CryptoSuper list prepared by OrionX. This list estimates the annual production of the largest 45 crypto mining pools, with Ethereum, Bitcoin, and Dogecoin as the principal coins.

  • Be the first to comment

Top Cryptosupers jun2021

  1. 1. @OrionX_net June, 2021 Stephen Perrenod CryptoSuper 500 – Sixth List 
 
 Top Cryptocurrency Supercomputers
  2. 2. @OrionX_net ©2021 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) 
 O p e n S o u r c e T r a n s p a r e n t L e d g e r I m m u t a b l e C o n s e n s u s P r o o f o f “ x y z ” M i n i n g D e c e n t r a l i z e d L o w e r f e e s P r i v a c y F r e e d o m All digital Money in internet Meta C r y p t o g r a p h i c K e y s I d e n t i t y What Benefits is it ?
  3. 3. @OrionX_net ©2021 OrionX.net ✦ 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 ✦ Most of the current 10,000+ coins will prove to be worthless in the long run (it was only 7500 last list) ✦ Surprise: your Bitcoin is not in your hardware wallet or paper wallet. That just holds the keys. OrionX position Money 3.0
  4. 4. @OrionX_net ©2021 OrionX.net ▪ It’s not either/or, it’s both ▪ They are each layers in a stack ▪ Blockchain is the triple entry ledger of chained transaction blocks: sender wallet, blockchain, receiver wallet ▪ A consensus algorithm (e.g. Nakamoto) that enforces security and prevents double spending is required: Mining, it also enforces a monetary policy ▪ An incentive is required to cause the algorithm to be computed and transactions added to the chain: Cryptocurrency/Coin ▪ Smart contracts and second layer chains extend the functionality Blockchain or Bitcoin? Gold, Fiat or Bitcoin? Aristotle defined the first four attributes required for money over two millennia ago. We have added Fungibility “one is as good as another” to the table. Bitcoin is private, global money on a decentralized, highly replicated leger. Monetary Technology Advances
  5. 5. @OrionX_net ©2021 OrionX.net Supercomputing for decentralized monetary assets Cryptocurrency Mining ✦ How big is the Crypto Mining Supercomputer Market? ✦ Method: We estimate the annual economic value of mined crypto ✦ Bitcoin market cap about $700 billion (early June 18.7 million BTC at $37,750) ✦ Bitcoin daily production = $32 million (miners also receive a few $ million in fees) – money supply inflation ~ 1.8% was cut in half in May, 2020 – 24 hours x 6 blocks per hour x 6.25 coins x $37,750 ✦ Annual production run rate, Bitcoin, $12 billion ✦ Ethereum #2 by market cap at $250 billion, daily production currently higher than Bitcoin, roughly $50 million of new ETH per day ✦ Top 45 Mining Pools produce revenue of $33 billion annually across top 3 mined coins, including new coins and transaction fees. Another several $ billion from smaller miners. ✦ Bitcoin mining is not dirty relative to global use of energy, it is estimated 39% of its electricity is sourced from renewables, three times the world average
  6. 6. @OrionX_net ©2021 OrionX.net CryptoSuper 
 Methodology ✦ 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, backed by reserves at the Fed. ✦ The mining protocols and hash rates vary in very large degree between coins – Total Hashrate for Bitcoin is over 100 Exahash/s and for ZCash only 7 Gigahash/s (10 orders of magnitude lower) ✦ Most coins (Bitcoin, Ethereum) require ASICs to be profitably mined ✦ 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 and adding transaction fee revenue
  7. 7. @OrionX_net ©2021 OrionX.net Great Chinese 
 Mining Shutdown ✦ Rumors came out in late May about a Chinese crypto mining shutdown. This time it was serious. ✦ The ban rolled out province by province in the key mining provinces of Inner Mongolia, XinJiang, and Sichuan. The big blow came on June 19 with orders in Sichuan. – Total Hashrate for Bitcoin fell from over 160 Exahash/s to under 100 Exahash/s by the end of June – Over half a dozen top mining pools saw their hash rate fall by more than half ✦ There were many articles and Twitter posts about mining rigs being relocated or sold to Central Asia and North America. The next CryptoSuper list toward the end of 2021 will be a very interesting one. ✦ Why ban mining? 1. limit capital flight 2. control electricity usage 3. better impose regulation and taxes if the ban is relaxed in the future 4. make space for the DC/EP central bank digital Yuan <—- the real reason
  8. 8. @OrionX_net Hashrate Evolution, Bitcoin Top Mined Coins 
 Top Host Countries 
 Billion Dollar Pool Operators Summary Tables
  9. 9. @OrionX_net ©2021 OrionX.net ✦ Bitcoin’s hashrate has grown from 0.2 Terahashes when it was 2 years old to over 100 Exahashes ✦ Over 8 orders of magnitude ✦ A BlockYear is 52,500 blocks each of about 10 minutes, and is approximately equal to a calendar year ✦ The Hashrate has grown as the 9th power of Block Years elapsed during the past 4 years (Hashrate regressed against # Block years or blockchain length) ✦ This amounts to 142% compound annual growth ✦ Far beyond Moore’s Law, it is Doubling each 9 months Hashrate is Total Compute Power, Tremendous Growth in Bitcoin Hashrate ✦ Block Height Block reward Block Years elapsed Date Hashrate (TeraH/s) log 10 of   Hashrat e log 10 of Block Year Power law, 4- year interval 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 11.19 656,250 6.25 12.5 2020-11-10 128,396,000 1.10 10.42 682,500 6.25 13 2021-05-08 175,210,000 1.11 8.94 Last 4 years HR ratio 34 R^2 0.94 slope 8.94 CAGR 142%
  10. 10. @OrionX_net ©2021 OrionX.net ✦ These 6 coins produce $39 billion of annual economic value (AEV) produced (up from $9.1 billion in November, 2020) ✦ ETH (Ethereum) is slightly ahead of Bitcoin, each are around $40 to 50 Million per day ✦ Only ETH, BTC, and Dogecoin have pools of over $100 million a year (45 pools aggregate) Top Six Coins for Mining Pools ✦
  11. 11. @OrionX_net ©2021 OrionX.net ✦ We ranked the top 45 pools for each of the six top coins (cutoff $100 million per annum) ✦ Pools are all in fact multinational since anyone can contribute compute power to any pool ✦ This is a list by host country ranking for AEV, some are Mixed ✦ Global includes US, China, and/or Europe hosting within the same pool ✦ China has 37% of the Top 45 pool AEV, Global 50%, US 9% (much of Global is in China as well) ✦ China is experiencing a large exodus of hash rate with government crackdown on mining farms Top Host Countries (Pools over $100 million annual) ✦ Host Country Number of Top Pools Percent o f AEV Annualized M$ China/Hong Kong 16 37.2 12,169 Global 17 50.0 16,352 US 5 9.4 3,074 Europe 2 1.3 440 Other 5 2.0 640 Totals 45 100 32,675
  12. 12. @OrionX_net ©2021 OrionX.net ✦ Often the same pool is mining the three top coins ✦ We aggregate the coins mined under the particular operator ✦ We also list the host country ✦ These are the Top 10, responsible for over 2/3 of the annual economic value creation ✦ China has 4, US 1, others global (but often with substantial Chinese participation) Billion $ Pool Operators ✦
  13. 13. @OrionX_net ©2021 OrionX.net Top 45 pools, Crypto Super List, by Coin
  14. 14. @OrionX_net ©2021 OrionX.net Top Ethereum Mining Pools: 
 
 Pool, Monthly and Annualized revenue (M$), Host country
  15. 15. @OrionX_net ©2021 OrionX.net Top Bitcoin Mining Pools: 
 
 Pool, Monthly and Annualized revenue (M$), Host country
  16. 16. @OrionX_net ©2021 OrionX.net Top Dogecoin Mining Pools: 
 
 Pool, Coin Monthly and Annualized revenue (M$), Host country
  17. 17. @OrionX_net June, 2021 Stephen Perreno d OrionX.net/research Thank you!
  18. 18. @OrionX_net ©2021 OrionX.net References ✦ Overall: coinmarketcap.com, coinwarz.com, cryptoslate.com 
 ✦ BTC: btc.com, blockchain.com ✦ ETH: btc.com, etherscan.io ✦ BTC, ETH, Doge, others: miningpoolstats.stream ✦ Cryptocurrency topics: orionx.net/blog ✦ Top Cryptocurrency Supercomputers November 2020, (slide presentation link) ✦ The Brutal Efficiency of Crypto Mining, https://medium.com/the-capital/the-brutal- efficiency-of-crypto-mining-far-beyond-moores-law-92fa90e617e0 ✦ Bitcoin’s Long Term Value, An Adoption S-Curve for a New Monetary Technology https:// medium.com/the-capital/bitcoins-long-term-value-e077e212264d

    Be the first to comment

  • Shahin.Khan

    Jun. 30, 2021

This is the Sixth semiannual CryptoSuper list prepared by OrionX. This list estimates the annual production of the largest 45 crypto mining pools, with Ethereum, Bitcoin, and Dogecoin as the principal coins.

Views

Total views

116

On Slideshare

0

From embeds

0

Number of embeds

51

Actions

Downloads

0

Shares

0

Comments

0

Likes

1

×