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Bitcoin Mining Equipment Demand is Exceeding Supply

As the world’s largest crypto by market cap hurtles past 11k, the demand for new Bitcoin mining equipment is exceeding supply. Now, manufacturers are feeling the pressure to produce enough machines to meet this demand.

Are we revisiting the same issue that occurred at the end of 2017, where demand was three times that of supply? It looks like it.

Bitcoin Mining is in Demand

Bitcoin price surged past $10,000 USD over the weekend and is already looking comfortable at $11,368 per coin.

Though not quite at its all-time high of $20,000, Bitcoin’s current price is still a 200% jump since February. While this is great for investors, miners are feeling the pressure, as according to Steven Mosher of Canaan Creative, the maker of the Avalon Miner:

“The surge in bitcoin resulted in increased demand and supplies were already short […] the current state of the industry is that inventories are down and demand is high.”

To deal with the surge, Bitcoin mining companies such as Canaan Creative are developing newer mining models that aim to mine faster using less wattage.

New Miners

Canaan’s latest is an updated version of its Avalon 851 machine, called the AvalonMiner 1041. This model is expected to compute 37 tera hashes per second (TH/s) with electricity consumption at 2,361 watts per hour.

By comparison, the older 851 model computes 14.5Th/s, consuming 1450 watts an hour.

As stated, demand for this equipment is exploding with Mosher detailing that pre-orders for such models are already backlogged to October.

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Other Bitcoin mining companies are also feeling the burn. Only last week, Bitmain rolled out updated versions of its Antminer S9 model called the AntMiner S9 SE and S9k.

There is good news too, of course, for miners. With Bitcoin price rising and business booming, the time it takes for new mining equipment to pay for itself has decreased significantly. Data from TokenInsight estimates that in Q2, the average payback period for most mining equipment was between 60–150 days. Prior to this, the payback period ranged between 120–280 days.

What are your thoughts on Bitcoin above 11k? Will it keep going? Will Bitcoin mining meet the demand?

Featured Image: DepositPhotos © SectoR_2010

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Chinese Crypto Miner Arrested for Stealing Electricity

Chinese crypto miner arrested: A man has been arrested in the Anhui Province of China for allegedly stealing 150 megawatts (MW) of electricity.

Chinese Crypto Miner Arrested

Local media outlet Xinhua reported the arrest today, stating that the man, known under the surname Ma, had more than 200 computers that he was attempting to mine both Bitcoin (BTC) and Ethereum (ETH) with. The computers have now been confiscated, along with the arrest of Ma.

Ma said that he had purchased the computers back in April, unaware of how much it would cost him to attempt such a large crypto mining operation. To his dismay, he discovered that it would cost him over 6,000 yuan, which translates into approximately $930 USD, per day. Ma had hoped that he would earn a profit by crypto mining, but by the time he was arrested, he still hadn’t made any money.

His solution to the expense of running all the computers was to short-circuit the electricity meter, which is how the police found it.

Ma’s crypto mining operation was discovered after the local power grid operator noticed an abnormal amount of energy being consumed and informed the police.

The Hanshan County police suspect that Ma could have stolen as much as 150 MW since April.

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The Energy Crisis

Bitcoin and Ethereum mining consume a large amount of power, as was evidently discovered by Ma. In fact, one peer-reviewed study believes that Bitcoin mining alone will use up 0.5% of the world’s energy by the end of this year.

Crypto mining networks are reportedly consuming more power than 159 countries combined.

Do you think that crypto mining is causing an energy crisis? Does something need to be done?

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Featured image: Comfreak via Pixabay

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County in Montana Delays Decision to Suspend Bitcoin Mining Operations – Crypto Currency News

After a wave of Bitcoin mining operations set up in areas with affordable electricity, places like Montana’s Missoula County needed to make a decision over the impact these operations have on the region.

Earlier this month, it was reported that Bitcoin’s (BTC) energy footprint had nearly doubled in six months and was expected to grow. According to the study, Bitcoin could be using up approximately 0.5% of the world’s energy by the end of the year, almost the same amount used by the Netherlands.

Needless to say, most people might not want that to happen.

On Thursday, the Missoula County Commission decided to delay its decision over the suspension of Bitcoin mining to August 2018, according to the local news site the Missoulian.

The hearing lasted nearly two hours where presentations and comments from the public were made on the topic of Bitcoin mining operations.

Missoula County Commissioner Jean Curtiss had said at the end of the hearing that “we all understand that we don’t understand,” while County Commissioner Cola Rowley noted that this could be a good time for “education and outreach.”

The county fears that the energy consumed by these operations could “pose a reliability and safety risk to local electric distribution systems, and affect electric rates for other customers” and that “the high energy loads could pose a fire hazard, and create electronic waste.”

If approved, the decision would impose a one-year ban on Bitcoin mining and any new or expanding cryptocurrency activity.

>>Did Tether (USDT) Really Manipulate the All-Time Price Highs of Bitcoin (BTC)?

Other regions that have suspended Bitcoin mining projects include the Canadian province of Québec, who announced in March that it’s utility services provider Hydro-Québec will not be taking in any more applications for the development of mining operations.

The demand for energy was beginning to exceed that supply that Hydro-Québec could supply.

Do you think these Bitcoin mining operations should be suspended until we find better reusable energy sources?

Featured Image: DepositPhotos/znm666

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