SlideShare a Scribd company logo
1 of 16
Download to read offline
@OrionX_net
May 2023
Stephen Perrenod
CryptoSuper 500 – Tenth List
Top Cryptocurrency Supercomputers
EMBARGOED until 25 May 2023
@OrionX_net
©2023 OrionX.net
Digital Money or
Digital Property
Store of value
Safe?
Unit of account
Supply?
Medium of exchange
Stable?
Money 3.0 is:
Money in the Internet
“Money has become
information. Bitcoin is energy
securely encapsulated as
information. Electrons to
eternal bits.” - @moneyordebt
a 500-year advance in accounting with
triple-entry ledgers on a timechain
Money 3.0
@OrionX_net
©2023 OrionX.net
✦ Bitcoin and cryptocurrency represents technology for 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, sent across the Internet
– Some might say cryptocurrencies are simply digital assets
✦ Most of the current 24,000+ coins will prove to be worthless in
the long run, the distribution of market cap falls off very
steeply (power law index -1.57 of the ranking)
✦ Very few, use Proof of Work, only 6 of those have significant
market cap
✦ Surprise: your Bitcoin is not in your hardware wallet or mobile
wallet or paper wallet. That just holds the keys.
OrionX position
Money 3.0
@OrionX_net
©2023 OrionX.net
▪ It’s not either/or with blockchain and bitcoin, it’s both
▪ They are each layers in an integrated stack
▪ Blockchain (or timechain) 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 (ordinals, BRC-20, etc.) and second
layer chains extend the functionality and scaling for
fast, small transactions
Blockchain or Bitcoin? Gold, Fiat or Bitcoin?
Table 1. Advances in monetary technology. 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
@OrionX_net
Bitcoin is now a major asset:
Market Cap, all Assets over $1/2 Trillion
CompaniesMarketCap.com
©2023 OrionX.net
Table 2. Bitcoin is a $0.5 Trillion asset. The
only other assets with larger market caps
are gold and silver, 8 trillion-dollar class
publicly traded American companies, and
Saudi Aramco. From
companiesmarketcap.com
@OrionX_net
©2023 OrionX.net
CryptoSuper
Methodology
✦ We only consider Reusable Proof of Work mined (minted) coins, since they are
the only ones using significant supercomputing power
– Non-mined coins usually use Proof of Stake, Pre-mining (“air drop”), or some Byzantine Fault
Tolerant algorithm. They either start with mining or an 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, or fiscal debt monetization, backed by reserves at the Fed
✦ The mining protocols and hash rates vary in very large degree between coins
– Total Hashrate for Bitcoin is about 350 Exahash/s and other top coins are mostly in the
Terahash/s domain, considerably less
✦ Most RPOW coins require ASICs to be profitably mined, GPU mining still possible
with some
✦ We compare mining pools by using the Economic value of coins produced per
year = number of blocks mined x number of coins per block x price per coin and
adding transaction fee revenue
– Pools are aggregators of many sources of hash rate including their own, other businesses,
and individual miners. They act as brokers to share collective rewards in proportion to
hashrate contributed to a pool, for modest fees
✦ We tabulate pools that are responsible for over $40 million annual economic value
each in Bitcoin or Dogecoin. No other coins have pools that qualify
@OrionX_net
©2023 OrionX.net
Supercomputing for decentralized monetary network
Cryptocurrency
Mining is Green
Supercomputing
✦ Method: We estimate the annual economic value of mined crypto, only Proof of Work coins
✦ Bitcoin market cap $530 billion (May 15, 2022, 19+ million BTC at $27,450)
✦ Bitcoin daily production = $25 million (miners also receive about $2 million in fees)
– money supply inflation under 1.8%, will cut in half to below 1% in April, 2024
– 24 hours x 6 blocks per hour x 6.25 coins x $27,450
✦ Annual production run rate, Bitcoin, about $9 billion, also $1 billion in fees, approximately
✦ Ethereum #2 by market cap at $225 billion, has abandoned Reusable POW in late 2022 and moved to
Proof of Stake; it is no longer a mined coin or supercomputing application; large owners collect yield
by staking
✦ Top Mining Pools produce revenue of $9.6 billion annually across top 2 mined coins, including both
new coins and transaction fees. Very little revenue from the next few proof of work coins at current
prices
✦ Bitcoin mining is cleaner than average global use of energy; also, Bitcoin, unlike most electricity
outputs, is not consumption, it is production that creates permanent value (mostly rising), only 1%
goes to transaction fees, 99% to new economic value
✦ The Bitcoin Mining Council estimates that 59% the industry’s electricity inputs are from sustainable
sources, based on a survey of their miners representing 45% of all Bitcoin hashrate. They report that
Bitcoin mining uses just 0.16% of global energy and responsibility for only 0.11% of CO2 emissions
Bitcoin energy inputs > 50% green
Bitcoin only 1/900 of all CO2e, says
Bitcoin Mining Council
@OrionX_net
©2023 OrionX.net
Great Chinese
Mining
Shutdown
✦ The US is now the largest provider of Bitcoin mining power with a 38%
share as of January 2022, following the Great Chinese Mining Shutdown
of mid-2021.
✦ Rumors came out in late May 2021 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.
✦ Global hashrate has now exceeded prior high, miners in China sold or
relocated many of their mining rigs. Some mining has restarted,
presumably unregulated, such that China is #2 provider with 21% share
(as of January 2022), followed Russia, Kazakhstan, and Canada
✦ These five countries provide over ¾ of all Bitcoin mining hash rate.
✦ This data comes from the Centre for Alternative Finance, U. Cambridge,
based on monitoring four of the largest Bitcoin pools.
✦ Why did China 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 central bank digital Yuan e-CNY <—- the real
reason
@OrionX_net
©2023 OrionX.net
✦ A number of publicly traded
Bitcoin mining companies have
listed shares, these have market
caps at or above ~ $40 million
and produce 18% of all Bitcoin
✦ 2022 was a tough year for miners,
many had to raise capital or sell
assets but the price recovery in
2023 and higher fees are boosting
profitability
✦ Most are HQ’d in the US and
Canada, also UK, Australia
✦ Data from company web sites and
Yahoo Finance, 5/10/23
✦ If these and some additional
Bitcoin mining public companies
can implement their plans, by late
2023 they could have over 20% of
global hash rate among them
Publicly traded
Bitcoin Mining
Companies
✦
Table 3. The top publicly traded Bitcoin mining companies, some of these companies have other business lines, most are pure plays. In general, these
are new businesses with significant venture capital invested and large capital expenses devoted to ramping up hashrate with new mining rigs, so
although they may have good operating margins on mining most are not profitable. Many of these are also keeping much of the Bitcoin they mine in
their treasuries, collectively over $900 million in value. Data from Yahoo Finance on 5/10/23 , hashrateindex.com, and company websites.
Company
Market Cap
$Million
Pretax
Earnings
2022, $M
Stock Price $
Hash Rate plans in
Exahashes/sec
Bitcoin
Held
Daily
Bitcoin
mined
Argo Blockchain 72 -186 1.44 2.5, adding 0.3 N/A 4.8
Bitfarms 274 -256 1.13 5.0 465 12.6
Cipher Mining 556 -37 2.24 6, adding 1.2 427 13.5
Clean Spark 394 -40 5.05 6.7 313 17.5
Core Scientific 134 -2163 0.36 14.8
Filed
bankrupt
cy, still
operating
37.5
Hive Blockchain 273 82 3.25 1.9, adding 2 2,372 9.1
Hut8 Mining 413 -233 1.87 2.6 9,265 4.4
Iris Energy Ltd. 227 -417 4.13 5.5 1,398 10.6
Marathon Digital 1674 -709 10.09 14, adding 4 11,568 23.4
Northern Data AG 429 336 17.27 3.8, adding 0.9 N/A 7
Riot Blockchain 2190 -521 12.59 10.5 7,112 21.3
Stronghold
43 -195 0.94 3.2, adding 0.8 N/A 5
Total 6679 -4339 Up to 85 by q3 2023 32,920 166.7
@OrionX_net
Top Proof of Work Coins
Mining Rigs
Largest Pool Operators
Summary Tables
@OrionX_net
©2023 OrionX.net
✦ These 6 coins produce over $9
billion of annual economic value
(AEV)
✦ Bitcoin has almost all the value
at $8.8 billion, Dogecoin is the
clear #2 as Ethereum has
dropped out of the race.
Transaction fees not included
here.
✦ Only BTC and DOGE have
pools of over $40 million a year
(16 such pools)
Top Six Proof-of-
Work Coins
✦
Table 4. The first and second column give the coin name and its cryptographic hash algorithm. The
next two columns give the nominal block time and the block subsidy received by a miner each
block. The fifth Column gives the recent (5/14/23) price for the coin, and the last two columns
provide the hash rate and the units for the hash rate. Only Bitcoin is in the 100s of Exahashes/sec
range, and as a result almost all the economic value is in Bitcoin.
Coin
Market
Cap (B$)
Total hash rate
Annual
production
$B
(nominal)
Current
Supply
(millions)
Max
Supply
(millions)
Bitcoin 517 354 EH/s 8.80 19.37 21
Dogecoin 10.0 635 TH/s 0.38 139, 282 No cap
Litecoin 5.84 703 TH/s 0.21 72.88 84
Monero 2.79 2.45 GH/s 0.02 18.28 No cap
Ethereum Classic 2.54 128 TH/s 0.11 141 211
Bitcoin Cash 2.20 0.65 EH/s 0.06 19.39 21
@OrionX_net
©2023 OrionX.net
✦ These are six of the fastest
Bitcoin mining rigs on the
market, from the two largest
vendors.
✦ The table shows hashrate,
electricity required, and
operating profit at 5 cents per
kilowatt-hour
✦ This table was produced in May
2023
Top Mining Rigs
Table 5. Some popular Bitcoin mining rig parameters of hash rate, power consumption, and power per
delivered hash rate (lower is better). Operating revenue after electricity costs only is calculated using 5
cents per kWh. According to hashrateindex.com pricing is in the range of $16 to $24 per Terahash/s for
these machines, with higher prices commanded for better efficiency scores.
Manufacturer Model Hashrate
Terahash/s
Electricity
Watts
Efficiency =
Joules/Terahash
Operating
Revenue per day
at 5 cents kWH,
BTC $27.6K
Bitmain Antminer S19 XP 140 3010 21.5 US$10.40
Antminer S19 XP
Hydro (immersion
cooling)
255 5304 20.8 US$19.16
Antminer S19 Pro 110 3250 29.5 US$7.11
Antminer S19 95 3250 34.2 US$5.61
MicroBT Whatsminer M53 212 5500 25.9 US$14.62
Whatsminer M50S 126 3276 26.0 US$8.68
@OrionX_net
©2023 OrionX.net
✦ Top 12 Bitcoin Mining
Operators of 15 pools
✦ Pools are not mining farms,
they are brokers of hash
rate for a modest fee
✦ Miners, large and small,
typically choose to direct
their hashrate to a pool for
efficiency and for
predictable payouts
✦ We also list the host
country (Global typically
are Chinese pools that
relocated or hide their
location)
✦ These top pools are
responsible for over 93% of
the value creation
Largest
Pool
Operators
✦
Table 6. Top mining pools by value using Bitccoin and Dogecoinprices as of 5/14/23.
Transaction fees add 12.6% (last 31-day average) on top of Bitcoin’s block subsidy
reward. We only include pools with at least $38 million annualized revenue. There has
been substantial consolidation since Ethereum switched to proof-of-stake.
Pool Country Bitcoin AEV
($M)
Dogecoin AE
V ($M)
Total $M
Foundry Digital USA 3029 0 1,813
AntPool Global 2256 54 1,345
F2Pool Global 1187 68 1,209
Binance pool USA 994 0 831
ViaBTC Germany 849 134 838
Marapool N/A 366 0 515
BTCdotcom Global 186 0 361
Braiins Global 179 0 261
SBI Crypto Japan 97 0 193
Poolin USA 69 0 149
BTC M4 N/A 55 0 98
Litecoin Pool Global 0 38
Top 12 operators 9,266 295 9,561
All Mining 9,866 373 10,239
@OrionX_net
©2023 OrionX.net
CryptoSuper
Mining Trends
✦ Bitcoin dominance for mining (minting) now strongly established; Dogecoin
very distant second since Ethereum departed the field
✦ A dozen pools broker (not mine) most of $10 billion worth of value, almost all
Bitcoin, and about $1 billion of which is transaction fees
✦ Ever faster mining hardware, including liquid cooling; new highs in global
hashrate, rising about 50% per year
✦ North American dominance, public companies as major players may
increase to 1/5 of all Bitcoin production during 2023
✦ Retrenchment for some companies due to crypto winter of 2022’s low price
pressures but early 2023 has seen much higher prices for Bitcoin
✦ The electrical input has trended toward increasingly green, some public
companies have set carbon neutrality goals
✦ Some geographies are restricting electricity access but Bitcoin mining acts
as a load balancer for utility operators
@OrionX_net
May 2023
Stephen Perrenod
OrionX.net/research
Thank you!
@OrionX_net
©2023 OrionX.net
References
✦ Overall: coinmarketcap.com, coinwarz.com, miningpoolstats.stream
✦ BTC: btc.com, blockchain.com
✦ Cryptocurrency topics: orionx.net/blog
✦ Ninth CryptoSuper500 List, OrionX, November 2022, https://orionx.net/research-reports/
✦ Cambridge Bitcoin Electricity Consumption Index: https://ccaf.io/cbeci/index
✦ Bitcoin Mining Council: https://bitcoinminingcouncil.com, endthefud.org,
✦ Mining rigs: asicminervalue.com, hashrateindex.com
✦ Reusable proof of work article by Hal Finney: https://nakamotoinstitute.org/finney/rpow/index.html
✦ Bitcoin’s Fundamental Value, in The Capital, on Medium, S. Perrenod 2022, https://medium.com/the-
capital/bitcoins-fundamental-value-derives-from-scarcity-security-then-utility-9e7d49bbd078
✦ Bitcoin and the Circular Economy, in The Capital, on Medium, S. Perrenod 2022,
https://medium.com/the- capital/bitcoin-and-the-circular-economy-f1a4db39480c

More Related Content

Similar to TopCryptoSupers-May2023.pdf

WHAT IS CRYPTOCURRENCY EXPECTED APPLICATIONS.
WHAT IS CRYPTOCURRENCY  EXPECTED APPLICATIONS.WHAT IS CRYPTOCURRENCY  EXPECTED APPLICATIONS.
WHAT IS CRYPTOCURRENCY EXPECTED APPLICATIONS.Qutomatic
 
BITCOIN: WHY IT NOW BELONGS IN EVERY PORTFOLIO
BITCOIN: WHY IT NOW BELONGS IN EVERY PORTFOLIOBITCOIN: WHY IT NOW BELONGS IN EVERY PORTFOLIO
BITCOIN: WHY IT NOW BELONGS IN EVERY PORTFOLIOSteven Rhyner
 
BTCetc – ETC Group Physical Bitcoin (BTCE) Presentation
BTCetc – ETC Group  Physical Bitcoin (BTCE) PresentationBTCetc – ETC Group  Physical Bitcoin (BTCE) Presentation
BTCetc – ETC Group Physical Bitcoin (BTCE) PresentationPeter Wises
 
State of Digital Assets May 2019 - Blockshine Singapore
State of Digital Assets May 2019 - Blockshine SingaporeState of Digital Assets May 2019 - Blockshine Singapore
State of Digital Assets May 2019 - Blockshine SingaporeRandeep Melhi
 
Blockchain Market Outlook : 2019 - 2020
Blockchain Market Outlook : 2019 - 2020Blockchain Market Outlook : 2019 - 2020
Blockchain Market Outlook : 2019 - 2020Abraham Cobos Ramírez
 
A Data-Centric Perspective of the Recent Crypto-Bull Run
A Data-Centric Perspective of the Recent Crypto-Bull RunA Data-Centric Perspective of the Recent Crypto-Bull Run
A Data-Centric Perspective of the Recent Crypto-Bull Runintotheblock
 
Expert Briefing - State of Bitcoin
Expert Briefing - State of BitcoinExpert Briefing - State of Bitcoin
Expert Briefing - State of BitcoinCoinDesk
 
Wavemaker Cryptocurrency Overview Dec 2017
Wavemaker Cryptocurrency Overview Dec 2017Wavemaker Cryptocurrency Overview Dec 2017
Wavemaker Cryptocurrency Overview Dec 2017David Siemer
 
Quick Understanding of Bitcoin/Cryptocurrency.
Quick Understanding of Bitcoin/Cryptocurrency.Quick Understanding of Bitcoin/Cryptocurrency.
Quick Understanding of Bitcoin/Cryptocurrency.Satish Mudaliar
 
Quick Understanding of Bitcoin/Cryptocurrency.
Quick Understanding of Bitcoin/Cryptocurrency.Quick Understanding of Bitcoin/Cryptocurrency.
Quick Understanding of Bitcoin/Cryptocurrency.Satish Mudaliar
 
Bitcoin - @B1T_DADDY.pptx
Bitcoin - @B1T_DADDY.pptxBitcoin - @B1T_DADDY.pptx
Bitcoin - @B1T_DADDY.pptxTaylorP3
 
Introduction to Blockchain, Cryptocurrency & Altcoins
Introduction to Blockchain, Cryptocurrency & AltcoinsIntroduction to Blockchain, Cryptocurrency & Altcoins
Introduction to Blockchain, Cryptocurrency & AltcoinsChampikeMunasinghe
 
Overview of Digital Assets and Blockchain - Goldman Sachs (Asia) 2021.pdf
Overview of Digital Assets and Blockchain - Goldman Sachs (Asia) 2021.pdfOverview of Digital Assets and Blockchain - Goldman Sachs (Asia) 2021.pdf
Overview of Digital Assets and Blockchain - Goldman Sachs (Asia) 2021.pdfDavidYao28
 
Mindworks Ventures Blockchain Report 2017
Mindworks Ventures Blockchain Report 2017Mindworks Ventures Blockchain Report 2017
Mindworks Ventures Blockchain Report 2017David Chang
 
Bitcoin energy consumption index - digiconomist
Bitcoin energy consumption index - digiconomistBitcoin energy consumption index - digiconomist
Bitcoin energy consumption index - digiconomistnadeemmumbai
 
Blockchain Report 2017
Blockchain Report 2017 Blockchain Report 2017
Blockchain Report 2017 Jeffrey Wu
 
Blockchain and bitcoin in numbers
Blockchain and bitcoin in numbersBlockchain and bitcoin in numbers
Blockchain and bitcoin in numbersBellaj Badr
 
Top 10 Ways To Make Money In Cryptocurrency.pdf
Top 10 Ways To Make Money In Cryptocurrency.pdfTop 10 Ways To Make Money In Cryptocurrency.pdf
Top 10 Ways To Make Money In Cryptocurrency.pdfDigital Coin
 

Similar to TopCryptoSupers-May2023.pdf (20)

WHAT IS CRYPTOCURRENCY EXPECTED APPLICATIONS.
WHAT IS CRYPTOCURRENCY  EXPECTED APPLICATIONS.WHAT IS CRYPTOCURRENCY  EXPECTED APPLICATIONS.
WHAT IS CRYPTOCURRENCY EXPECTED APPLICATIONS.
 
BITCOIN: WHY IT NOW BELONGS IN EVERY PORTFOLIO
BITCOIN: WHY IT NOW BELONGS IN EVERY PORTFOLIOBITCOIN: WHY IT NOW BELONGS IN EVERY PORTFOLIO
BITCOIN: WHY IT NOW BELONGS IN EVERY PORTFOLIO
 
BTCetc – ETC Group Physical Bitcoin (BTCE) Presentation
BTCetc – ETC Group  Physical Bitcoin (BTCE) PresentationBTCetc – ETC Group  Physical Bitcoin (BTCE) Presentation
BTCetc – ETC Group Physical Bitcoin (BTCE) Presentation
 
State of Digital Assets May 2019 - Blockshine Singapore
State of Digital Assets May 2019 - Blockshine SingaporeState of Digital Assets May 2019 - Blockshine Singapore
State of Digital Assets May 2019 - Blockshine Singapore
 
Blockchain Market Outlook : 2019 - 2020
Blockchain Market Outlook : 2019 - 2020Blockchain Market Outlook : 2019 - 2020
Blockchain Market Outlook : 2019 - 2020
 
A Data-Centric Perspective of the Recent Crypto-Bull Run
A Data-Centric Perspective of the Recent Crypto-Bull RunA Data-Centric Perspective of the Recent Crypto-Bull Run
A Data-Centric Perspective of the Recent Crypto-Bull Run
 
Expert Briefing - State of Bitcoin
Expert Briefing - State of BitcoinExpert Briefing - State of Bitcoin
Expert Briefing - State of Bitcoin
 
Wavemaker Cryptocurrency Overview Dec 2017
Wavemaker Cryptocurrency Overview Dec 2017Wavemaker Cryptocurrency Overview Dec 2017
Wavemaker Cryptocurrency Overview Dec 2017
 
HM Tech LLC Nov 2023.pdf
HM Tech LLC Nov 2023.pdfHM Tech LLC Nov 2023.pdf
HM Tech LLC Nov 2023.pdf
 
Quick Understanding of Bitcoin/Cryptocurrency.
Quick Understanding of Bitcoin/Cryptocurrency.Quick Understanding of Bitcoin/Cryptocurrency.
Quick Understanding of Bitcoin/Cryptocurrency.
 
Quick Understanding of Bitcoin/Cryptocurrency.
Quick Understanding of Bitcoin/Cryptocurrency.Quick Understanding of Bitcoin/Cryptocurrency.
Quick Understanding of Bitcoin/Cryptocurrency.
 
Bitcoin - @B1T_DADDY.pptx
Bitcoin - @B1T_DADDY.pptxBitcoin - @B1T_DADDY.pptx
Bitcoin - @B1T_DADDY.pptx
 
Introduction to Blockchain, Cryptocurrency & Altcoins
Introduction to Blockchain, Cryptocurrency & AltcoinsIntroduction to Blockchain, Cryptocurrency & Altcoins
Introduction to Blockchain, Cryptocurrency & Altcoins
 
Overview of Digital Assets and Blockchain - Goldman Sachs (Asia) 2021.pdf
Overview of Digital Assets and Blockchain - Goldman Sachs (Asia) 2021.pdfOverview of Digital Assets and Blockchain - Goldman Sachs (Asia) 2021.pdf
Overview of Digital Assets and Blockchain - Goldman Sachs (Asia) 2021.pdf
 
Mindworks Ventures Blockchain Report 2017
Mindworks Ventures Blockchain Report 2017Mindworks Ventures Blockchain Report 2017
Mindworks Ventures Blockchain Report 2017
 
Bitcoin energy consumption index - digiconomist
Bitcoin energy consumption index - digiconomistBitcoin energy consumption index - digiconomist
Bitcoin energy consumption index - digiconomist
 
Blockchain Report 2017
Blockchain Report 2017 Blockchain Report 2017
Blockchain Report 2017
 
Cryptocurrency in real world
Cryptocurrency in real worldCryptocurrency in real world
Cryptocurrency in real world
 
Blockchain and bitcoin in numbers
Blockchain and bitcoin in numbersBlockchain and bitcoin in numbers
Blockchain and bitcoin in numbers
 
Top 10 Ways To Make Money In Cryptocurrency.pdf
Top 10 Ways To Make Money In Cryptocurrency.pdfTop 10 Ways To Make Money In Cryptocurrency.pdf
Top 10 Ways To Make Money In Cryptocurrency.pdf
 

More from Stephen Perrenod

The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?Stephen Perrenod
 
CryptoSuper 500 November 2019
CryptoSuper 500 November 2019CryptoSuper 500 November 2019
CryptoSuper 500 November 2019Stephen Perrenod
 
Top cryptosupers 20181112v3
Top cryptosupers 20181112v3Top cryptosupers 20181112v3
Top cryptosupers 20181112v3Stephen Perrenod
 
Emergent Gravity according to Verlinde
Emergent Gravity according to VerlindeEmergent Gravity according to Verlinde
Emergent Gravity according to VerlindeStephen Perrenod
 
Galaxies_BigBang_Dark Matter
Galaxies_BigBang_Dark MatterGalaxies_BigBang_Dark Matter
Galaxies_BigBang_Dark MatterStephen Perrenod
 
Galaxies, Dark Matter and the Universe
Galaxies, Dark Matter and the UniverseGalaxies, Dark Matter and the Universe
Galaxies, Dark Matter and the UniverseStephen Perrenod
 

More from Stephen Perrenod (8)

The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?
 
CryptoSuper 500 November 2019
CryptoSuper 500 November 2019CryptoSuper 500 November 2019
CryptoSuper 500 November 2019
 
Top cryptosupers 201906v1
Top cryptosupers 201906v1Top cryptosupers 201906v1
Top cryptosupers 201906v1
 
Top cryptosupers 20181112v3
Top cryptosupers 20181112v3Top cryptosupers 20181112v3
Top cryptosupers 20181112v3
 
Big universe
Big universeBig universe
Big universe
 
Emergent Gravity according to Verlinde
Emergent Gravity according to VerlindeEmergent Gravity according to Verlinde
Emergent Gravity according to Verlinde
 
Galaxies_BigBang_Dark Matter
Galaxies_BigBang_Dark MatterGalaxies_BigBang_Dark Matter
Galaxies_BigBang_Dark Matter
 
Galaxies, Dark Matter and the Universe
Galaxies, Dark Matter and the UniverseGalaxies, Dark Matter and the Universe
Galaxies, Dark Matter and the Universe
 

Recently uploaded

Scale your database traffic with Read & Write split using MySQL Router
Scale your database traffic with Read & Write split using MySQL RouterScale your database traffic with Read & Write split using MySQL Router
Scale your database traffic with Read & Write split using MySQL RouterMydbops
 
Varsha Sewlal- Cyber Attacks on Critical Critical Infrastructure
Varsha Sewlal- Cyber Attacks on Critical Critical InfrastructureVarsha Sewlal- Cyber Attacks on Critical Critical Infrastructure
Varsha Sewlal- Cyber Attacks on Critical Critical Infrastructureitnewsafrica
 
Modern Roaming for Notes and Nomad – Cheaper Faster Better Stronger
Modern Roaming for Notes and Nomad – Cheaper Faster Better StrongerModern Roaming for Notes and Nomad – Cheaper Faster Better Stronger
Modern Roaming for Notes and Nomad – Cheaper Faster Better Strongerpanagenda
 
Generative AI - Gitex v1Generative AI - Gitex v1.pptx
Generative AI - Gitex v1Generative AI - Gitex v1.pptxGenerative AI - Gitex v1Generative AI - Gitex v1.pptx
Generative AI - Gitex v1Generative AI - Gitex v1.pptxfnnc6jmgwh
 
Microservices, Docker deploy and Microservices source code in C#
Microservices, Docker deploy and Microservices source code in C#Microservices, Docker deploy and Microservices source code in C#
Microservices, Docker deploy and Microservices source code in C#Karmanjay Verma
 
QCon London: Mastering long-running processes in modern architectures
QCon London: Mastering long-running processes in modern architecturesQCon London: Mastering long-running processes in modern architectures
QCon London: Mastering long-running processes in modern architecturesBernd Ruecker
 
UiPath Community: Communication Mining from Zero to Hero
UiPath Community: Communication Mining from Zero to HeroUiPath Community: Communication Mining from Zero to Hero
UiPath Community: Communication Mining from Zero to HeroUiPathCommunity
 
Data governance with Unity Catalog Presentation
Data governance with Unity Catalog PresentationData governance with Unity Catalog Presentation
Data governance with Unity Catalog PresentationKnoldus Inc.
 
A Framework for Development in the AI Age
A Framework for Development in the AI AgeA Framework for Development in the AI Age
A Framework for Development in the AI AgeCprime
 
Testing tools and AI - ideas what to try with some tool examples
Testing tools and AI - ideas what to try with some tool examplesTesting tools and AI - ideas what to try with some tool examples
Testing tools and AI - ideas what to try with some tool examplesKari Kakkonen
 
Bridging Between CAD & GIS: 6 Ways to Automate Your Data Integration
Bridging Between CAD & GIS:  6 Ways to Automate Your Data IntegrationBridging Between CAD & GIS:  6 Ways to Automate Your Data Integration
Bridging Between CAD & GIS: 6 Ways to Automate Your Data Integrationmarketing932765
 
MuleSoft Online Meetup Group - B2B Crash Course: Release SparkNotes
MuleSoft Online Meetup Group - B2B Crash Course: Release SparkNotesMuleSoft Online Meetup Group - B2B Crash Course: Release SparkNotes
MuleSoft Online Meetup Group - B2B Crash Course: Release SparkNotesManik S Magar
 
Genislab builds better products and faster go-to-market with Lean project man...
Genislab builds better products and faster go-to-market with Lean project man...Genislab builds better products and faster go-to-market with Lean project man...
Genislab builds better products and faster go-to-market with Lean project man...Farhan Tariq
 
A Deep Dive on Passkeys: FIDO Paris Seminar.pptx
A Deep Dive on Passkeys: FIDO Paris Seminar.pptxA Deep Dive on Passkeys: FIDO Paris Seminar.pptx
A Deep Dive on Passkeys: FIDO Paris Seminar.pptxLoriGlavin3
 
Unleashing Real-time Insights with ClickHouse_ Navigating the Landscape in 20...
Unleashing Real-time Insights with ClickHouse_ Navigating the Landscape in 20...Unleashing Real-time Insights with ClickHouse_ Navigating the Landscape in 20...
Unleashing Real-time Insights with ClickHouse_ Navigating the Landscape in 20...Alkin Tezuysal
 
The Fit for Passkeys for Employee and Consumer Sign-ins: FIDO Paris Seminar.pptx
The Fit for Passkeys for Employee and Consumer Sign-ins: FIDO Paris Seminar.pptxThe Fit for Passkeys for Employee and Consumer Sign-ins: FIDO Paris Seminar.pptx
The Fit for Passkeys for Employee and Consumer Sign-ins: FIDO Paris Seminar.pptxLoriGlavin3
 
Design pattern talk by Kaya Weers - 2024 (v2)
Design pattern talk by Kaya Weers - 2024 (v2)Design pattern talk by Kaya Weers - 2024 (v2)
Design pattern talk by Kaya Weers - 2024 (v2)Kaya Weers
 
Glenn Lazarus- Why Your Observability Strategy Needs Security Observability
Glenn Lazarus- Why Your Observability Strategy Needs Security ObservabilityGlenn Lazarus- Why Your Observability Strategy Needs Security Observability
Glenn Lazarus- Why Your Observability Strategy Needs Security Observabilityitnewsafrica
 
Decarbonising Buildings: Making a net-zero built environment a reality
Decarbonising Buildings: Making a net-zero built environment a realityDecarbonising Buildings: Making a net-zero built environment a reality
Decarbonising Buildings: Making a net-zero built environment a realityIES VE
 
2024 April Patch Tuesday
2024 April Patch Tuesday2024 April Patch Tuesday
2024 April Patch TuesdayIvanti
 

Recently uploaded (20)

Scale your database traffic with Read & Write split using MySQL Router
Scale your database traffic with Read & Write split using MySQL RouterScale your database traffic with Read & Write split using MySQL Router
Scale your database traffic with Read & Write split using MySQL Router
 
Varsha Sewlal- Cyber Attacks on Critical Critical Infrastructure
Varsha Sewlal- Cyber Attacks on Critical Critical InfrastructureVarsha Sewlal- Cyber Attacks on Critical Critical Infrastructure
Varsha Sewlal- Cyber Attacks on Critical Critical Infrastructure
 
Modern Roaming for Notes and Nomad – Cheaper Faster Better Stronger
Modern Roaming for Notes and Nomad – Cheaper Faster Better StrongerModern Roaming for Notes and Nomad – Cheaper Faster Better Stronger
Modern Roaming for Notes and Nomad – Cheaper Faster Better Stronger
 
Generative AI - Gitex v1Generative AI - Gitex v1.pptx
Generative AI - Gitex v1Generative AI - Gitex v1.pptxGenerative AI - Gitex v1Generative AI - Gitex v1.pptx
Generative AI - Gitex v1Generative AI - Gitex v1.pptx
 
Microservices, Docker deploy and Microservices source code in C#
Microservices, Docker deploy and Microservices source code in C#Microservices, Docker deploy and Microservices source code in C#
Microservices, Docker deploy and Microservices source code in C#
 
QCon London: Mastering long-running processes in modern architectures
QCon London: Mastering long-running processes in modern architecturesQCon London: Mastering long-running processes in modern architectures
QCon London: Mastering long-running processes in modern architectures
 
UiPath Community: Communication Mining from Zero to Hero
UiPath Community: Communication Mining from Zero to HeroUiPath Community: Communication Mining from Zero to Hero
UiPath Community: Communication Mining from Zero to Hero
 
Data governance with Unity Catalog Presentation
Data governance with Unity Catalog PresentationData governance with Unity Catalog Presentation
Data governance with Unity Catalog Presentation
 
A Framework for Development in the AI Age
A Framework for Development in the AI AgeA Framework for Development in the AI Age
A Framework for Development in the AI Age
 
Testing tools and AI - ideas what to try with some tool examples
Testing tools and AI - ideas what to try with some tool examplesTesting tools and AI - ideas what to try with some tool examples
Testing tools and AI - ideas what to try with some tool examples
 
Bridging Between CAD & GIS: 6 Ways to Automate Your Data Integration
Bridging Between CAD & GIS:  6 Ways to Automate Your Data IntegrationBridging Between CAD & GIS:  6 Ways to Automate Your Data Integration
Bridging Between CAD & GIS: 6 Ways to Automate Your Data Integration
 
MuleSoft Online Meetup Group - B2B Crash Course: Release SparkNotes
MuleSoft Online Meetup Group - B2B Crash Course: Release SparkNotesMuleSoft Online Meetup Group - B2B Crash Course: Release SparkNotes
MuleSoft Online Meetup Group - B2B Crash Course: Release SparkNotes
 
Genislab builds better products and faster go-to-market with Lean project man...
Genislab builds better products and faster go-to-market with Lean project man...Genislab builds better products and faster go-to-market with Lean project man...
Genislab builds better products and faster go-to-market with Lean project man...
 
A Deep Dive on Passkeys: FIDO Paris Seminar.pptx
A Deep Dive on Passkeys: FIDO Paris Seminar.pptxA Deep Dive on Passkeys: FIDO Paris Seminar.pptx
A Deep Dive on Passkeys: FIDO Paris Seminar.pptx
 
Unleashing Real-time Insights with ClickHouse_ Navigating the Landscape in 20...
Unleashing Real-time Insights with ClickHouse_ Navigating the Landscape in 20...Unleashing Real-time Insights with ClickHouse_ Navigating the Landscape in 20...
Unleashing Real-time Insights with ClickHouse_ Navigating the Landscape in 20...
 
The Fit for Passkeys for Employee and Consumer Sign-ins: FIDO Paris Seminar.pptx
The Fit for Passkeys for Employee and Consumer Sign-ins: FIDO Paris Seminar.pptxThe Fit for Passkeys for Employee and Consumer Sign-ins: FIDO Paris Seminar.pptx
The Fit for Passkeys for Employee and Consumer Sign-ins: FIDO Paris Seminar.pptx
 
Design pattern talk by Kaya Weers - 2024 (v2)
Design pattern talk by Kaya Weers - 2024 (v2)Design pattern talk by Kaya Weers - 2024 (v2)
Design pattern talk by Kaya Weers - 2024 (v2)
 
Glenn Lazarus- Why Your Observability Strategy Needs Security Observability
Glenn Lazarus- Why Your Observability Strategy Needs Security ObservabilityGlenn Lazarus- Why Your Observability Strategy Needs Security Observability
Glenn Lazarus- Why Your Observability Strategy Needs Security Observability
 
Decarbonising Buildings: Making a net-zero built environment a reality
Decarbonising Buildings: Making a net-zero built environment a realityDecarbonising Buildings: Making a net-zero built environment a reality
Decarbonising Buildings: Making a net-zero built environment a reality
 
2024 April Patch Tuesday
2024 April Patch Tuesday2024 April Patch Tuesday
2024 April Patch Tuesday
 

TopCryptoSupers-May2023.pdf

  • 1. @OrionX_net May 2023 Stephen Perrenod CryptoSuper 500 – Tenth List Top Cryptocurrency Supercomputers EMBARGOED until 25 May 2023
  • 2. @OrionX_net ©2023 OrionX.net Digital Money or Digital Property Store of value Safe? Unit of account Supply? Medium of exchange Stable? Money 3.0 is: Money in the Internet “Money has become information. Bitcoin is energy securely encapsulated as information. Electrons to eternal bits.” - @moneyordebt a 500-year advance in accounting with triple-entry ledgers on a timechain Money 3.0
  • 3. @OrionX_net ©2023 OrionX.net ✦ Bitcoin and cryptocurrency represents technology for 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, sent across the Internet – Some might say cryptocurrencies are simply digital assets ✦ Most of the current 24,000+ coins will prove to be worthless in the long run, the distribution of market cap falls off very steeply (power law index -1.57 of the ranking) ✦ Very few, use Proof of Work, only 6 of those have significant market cap ✦ Surprise: your Bitcoin is not in your hardware wallet or mobile wallet or paper wallet. That just holds the keys. OrionX position Money 3.0
  • 4. @OrionX_net ©2023 OrionX.net ▪ It’s not either/or with blockchain and bitcoin, it’s both ▪ They are each layers in an integrated stack ▪ Blockchain (or timechain) 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 (ordinals, BRC-20, etc.) and second layer chains extend the functionality and scaling for fast, small transactions Blockchain or Bitcoin? Gold, Fiat or Bitcoin? Table 1. Advances in monetary technology. 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. @OrionX_net Bitcoin is now a major asset: Market Cap, all Assets over $1/2 Trillion CompaniesMarketCap.com ©2023 OrionX.net Table 2. Bitcoin is a $0.5 Trillion asset. The only other assets with larger market caps are gold and silver, 8 trillion-dollar class publicly traded American companies, and Saudi Aramco. From companiesmarketcap.com
  • 6. @OrionX_net ©2023 OrionX.net CryptoSuper Methodology ✦ We only consider Reusable Proof of Work mined (minted) coins, since they are the only ones using significant supercomputing power – Non-mined coins usually use Proof of Stake, Pre-mining (“air drop”), or some Byzantine Fault Tolerant algorithm. They either start with mining or an 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, or fiscal debt monetization, backed by reserves at the Fed ✦ The mining protocols and hash rates vary in very large degree between coins – Total Hashrate for Bitcoin is about 350 Exahash/s and other top coins are mostly in the Terahash/s domain, considerably less ✦ Most RPOW coins require ASICs to be profitably mined, GPU mining still possible with some ✦ We compare mining pools by using the Economic value of coins produced per year = number of blocks mined x number of coins per block x price per coin and adding transaction fee revenue – Pools are aggregators of many sources of hash rate including their own, other businesses, and individual miners. They act as brokers to share collective rewards in proportion to hashrate contributed to a pool, for modest fees ✦ We tabulate pools that are responsible for over $40 million annual economic value each in Bitcoin or Dogecoin. No other coins have pools that qualify
  • 7. @OrionX_net ©2023 OrionX.net Supercomputing for decentralized monetary network Cryptocurrency Mining is Green Supercomputing ✦ Method: We estimate the annual economic value of mined crypto, only Proof of Work coins ✦ Bitcoin market cap $530 billion (May 15, 2022, 19+ million BTC at $27,450) ✦ Bitcoin daily production = $25 million (miners also receive about $2 million in fees) – money supply inflation under 1.8%, will cut in half to below 1% in April, 2024 – 24 hours x 6 blocks per hour x 6.25 coins x $27,450 ✦ Annual production run rate, Bitcoin, about $9 billion, also $1 billion in fees, approximately ✦ Ethereum #2 by market cap at $225 billion, has abandoned Reusable POW in late 2022 and moved to Proof of Stake; it is no longer a mined coin or supercomputing application; large owners collect yield by staking ✦ Top Mining Pools produce revenue of $9.6 billion annually across top 2 mined coins, including both new coins and transaction fees. Very little revenue from the next few proof of work coins at current prices ✦ Bitcoin mining is cleaner than average global use of energy; also, Bitcoin, unlike most electricity outputs, is not consumption, it is production that creates permanent value (mostly rising), only 1% goes to transaction fees, 99% to new economic value ✦ The Bitcoin Mining Council estimates that 59% the industry’s electricity inputs are from sustainable sources, based on a survey of their miners representing 45% of all Bitcoin hashrate. They report that Bitcoin mining uses just 0.16% of global energy and responsibility for only 0.11% of CO2 emissions Bitcoin energy inputs > 50% green Bitcoin only 1/900 of all CO2e, says Bitcoin Mining Council
  • 8. @OrionX_net ©2023 OrionX.net Great Chinese Mining Shutdown ✦ The US is now the largest provider of Bitcoin mining power with a 38% share as of January 2022, following the Great Chinese Mining Shutdown of mid-2021. ✦ Rumors came out in late May 2021 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. ✦ Global hashrate has now exceeded prior high, miners in China sold or relocated many of their mining rigs. Some mining has restarted, presumably unregulated, such that China is #2 provider with 21% share (as of January 2022), followed Russia, Kazakhstan, and Canada ✦ These five countries provide over ¾ of all Bitcoin mining hash rate. ✦ This data comes from the Centre for Alternative Finance, U. Cambridge, based on monitoring four of the largest Bitcoin pools. ✦ Why did China 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 central bank digital Yuan e-CNY <—- the real reason
  • 9. @OrionX_net ©2023 OrionX.net ✦ A number of publicly traded Bitcoin mining companies have listed shares, these have market caps at or above ~ $40 million and produce 18% of all Bitcoin ✦ 2022 was a tough year for miners, many had to raise capital or sell assets but the price recovery in 2023 and higher fees are boosting profitability ✦ Most are HQ’d in the US and Canada, also UK, Australia ✦ Data from company web sites and Yahoo Finance, 5/10/23 ✦ If these and some additional Bitcoin mining public companies can implement their plans, by late 2023 they could have over 20% of global hash rate among them Publicly traded Bitcoin Mining Companies ✦ Table 3. The top publicly traded Bitcoin mining companies, some of these companies have other business lines, most are pure plays. In general, these are new businesses with significant venture capital invested and large capital expenses devoted to ramping up hashrate with new mining rigs, so although they may have good operating margins on mining most are not profitable. Many of these are also keeping much of the Bitcoin they mine in their treasuries, collectively over $900 million in value. Data from Yahoo Finance on 5/10/23 , hashrateindex.com, and company websites. Company Market Cap $Million Pretax Earnings 2022, $M Stock Price $ Hash Rate plans in Exahashes/sec Bitcoin Held Daily Bitcoin mined Argo Blockchain 72 -186 1.44 2.5, adding 0.3 N/A 4.8 Bitfarms 274 -256 1.13 5.0 465 12.6 Cipher Mining 556 -37 2.24 6, adding 1.2 427 13.5 Clean Spark 394 -40 5.05 6.7 313 17.5 Core Scientific 134 -2163 0.36 14.8 Filed bankrupt cy, still operating 37.5 Hive Blockchain 273 82 3.25 1.9, adding 2 2,372 9.1 Hut8 Mining 413 -233 1.87 2.6 9,265 4.4 Iris Energy Ltd. 227 -417 4.13 5.5 1,398 10.6 Marathon Digital 1674 -709 10.09 14, adding 4 11,568 23.4 Northern Data AG 429 336 17.27 3.8, adding 0.9 N/A 7 Riot Blockchain 2190 -521 12.59 10.5 7,112 21.3 Stronghold 43 -195 0.94 3.2, adding 0.8 N/A 5 Total 6679 -4339 Up to 85 by q3 2023 32,920 166.7
  • 10. @OrionX_net Top Proof of Work Coins Mining Rigs Largest Pool Operators Summary Tables
  • 11. @OrionX_net ©2023 OrionX.net ✦ These 6 coins produce over $9 billion of annual economic value (AEV) ✦ Bitcoin has almost all the value at $8.8 billion, Dogecoin is the clear #2 as Ethereum has dropped out of the race. Transaction fees not included here. ✦ Only BTC and DOGE have pools of over $40 million a year (16 such pools) Top Six Proof-of- Work Coins ✦ Table 4. The first and second column give the coin name and its cryptographic hash algorithm. The next two columns give the nominal block time and the block subsidy received by a miner each block. The fifth Column gives the recent (5/14/23) price for the coin, and the last two columns provide the hash rate and the units for the hash rate. Only Bitcoin is in the 100s of Exahashes/sec range, and as a result almost all the economic value is in Bitcoin. Coin Market Cap (B$) Total hash rate Annual production $B (nominal) Current Supply (millions) Max Supply (millions) Bitcoin 517 354 EH/s 8.80 19.37 21 Dogecoin 10.0 635 TH/s 0.38 139, 282 No cap Litecoin 5.84 703 TH/s 0.21 72.88 84 Monero 2.79 2.45 GH/s 0.02 18.28 No cap Ethereum Classic 2.54 128 TH/s 0.11 141 211 Bitcoin Cash 2.20 0.65 EH/s 0.06 19.39 21
  • 12. @OrionX_net ©2023 OrionX.net ✦ These are six of the fastest Bitcoin mining rigs on the market, from the two largest vendors. ✦ The table shows hashrate, electricity required, and operating profit at 5 cents per kilowatt-hour ✦ This table was produced in May 2023 Top Mining Rigs Table 5. Some popular Bitcoin mining rig parameters of hash rate, power consumption, and power per delivered hash rate (lower is better). Operating revenue after electricity costs only is calculated using 5 cents per kWh. According to hashrateindex.com pricing is in the range of $16 to $24 per Terahash/s for these machines, with higher prices commanded for better efficiency scores. Manufacturer Model Hashrate Terahash/s Electricity Watts Efficiency = Joules/Terahash Operating Revenue per day at 5 cents kWH, BTC $27.6K Bitmain Antminer S19 XP 140 3010 21.5 US$10.40 Antminer S19 XP Hydro (immersion cooling) 255 5304 20.8 US$19.16 Antminer S19 Pro 110 3250 29.5 US$7.11 Antminer S19 95 3250 34.2 US$5.61 MicroBT Whatsminer M53 212 5500 25.9 US$14.62 Whatsminer M50S 126 3276 26.0 US$8.68
  • 13. @OrionX_net ©2023 OrionX.net ✦ Top 12 Bitcoin Mining Operators of 15 pools ✦ Pools are not mining farms, they are brokers of hash rate for a modest fee ✦ Miners, large and small, typically choose to direct their hashrate to a pool for efficiency and for predictable payouts ✦ We also list the host country (Global typically are Chinese pools that relocated or hide their location) ✦ These top pools are responsible for over 93% of the value creation Largest Pool Operators ✦ Table 6. Top mining pools by value using Bitccoin and Dogecoinprices as of 5/14/23. Transaction fees add 12.6% (last 31-day average) on top of Bitcoin’s block subsidy reward. We only include pools with at least $38 million annualized revenue. There has been substantial consolidation since Ethereum switched to proof-of-stake. Pool Country Bitcoin AEV ($M) Dogecoin AE V ($M) Total $M Foundry Digital USA 3029 0 1,813 AntPool Global 2256 54 1,345 F2Pool Global 1187 68 1,209 Binance pool USA 994 0 831 ViaBTC Germany 849 134 838 Marapool N/A 366 0 515 BTCdotcom Global 186 0 361 Braiins Global 179 0 261 SBI Crypto Japan 97 0 193 Poolin USA 69 0 149 BTC M4 N/A 55 0 98 Litecoin Pool Global 0 38 Top 12 operators 9,266 295 9,561 All Mining 9,866 373 10,239
  • 14. @OrionX_net ©2023 OrionX.net CryptoSuper Mining Trends ✦ Bitcoin dominance for mining (minting) now strongly established; Dogecoin very distant second since Ethereum departed the field ✦ A dozen pools broker (not mine) most of $10 billion worth of value, almost all Bitcoin, and about $1 billion of which is transaction fees ✦ Ever faster mining hardware, including liquid cooling; new highs in global hashrate, rising about 50% per year ✦ North American dominance, public companies as major players may increase to 1/5 of all Bitcoin production during 2023 ✦ Retrenchment for some companies due to crypto winter of 2022’s low price pressures but early 2023 has seen much higher prices for Bitcoin ✦ The electrical input has trended toward increasingly green, some public companies have set carbon neutrality goals ✦ Some geographies are restricting electricity access but Bitcoin mining acts as a load balancer for utility operators
  • 16. @OrionX_net ©2023 OrionX.net References ✦ Overall: coinmarketcap.com, coinwarz.com, miningpoolstats.stream ✦ BTC: btc.com, blockchain.com ✦ Cryptocurrency topics: orionx.net/blog ✦ Ninth CryptoSuper500 List, OrionX, November 2022, https://orionx.net/research-reports/ ✦ Cambridge Bitcoin Electricity Consumption Index: https://ccaf.io/cbeci/index ✦ Bitcoin Mining Council: https://bitcoinminingcouncil.com, endthefud.org, ✦ Mining rigs: asicminervalue.com, hashrateindex.com ✦ Reusable proof of work article by Hal Finney: https://nakamotoinstitute.org/finney/rpow/index.html ✦ Bitcoin’s Fundamental Value, in The Capital, on Medium, S. Perrenod 2022, https://medium.com/the- capital/bitcoins-fundamental-value-derives-from-scarcity-security-then-utility-9e7d49bbd078 ✦ Bitcoin and the Circular Economy, in The Capital, on Medium, S. Perrenod 2022, https://medium.com/the- capital/bitcoin-and-the-circular-economy-f1a4db39480c