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.
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.
>> Blockchain Island Malta to Put All Rental Contracts on the Blockchain
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