2019 Mining Industry Annual Research Report
Feb 20.2020TI Research

Executive Summary

  • Bitcoin yearly average hashrate increased by more than 80% in 2019, while the yearly average price dropped by 1.9% YoY.
  • The proportion of transaction fees decreased from $280 million to $160 million, a 43% decrease.
  • The global Bitcoin network is mainly concentrated in China, the United States, Canada, Northern Europe, Russia and Georgia.
  • After the 3rd halving, the Bitcoin inflation rate will decrease to ~ 1.7%, which is much lower than 4.8% - 6.2% (Gold) and 5% (M1) issue rate.
  • ASIC mining hardware manufacturers are relatively concentrated in China, and the market share of the top 4 manufacturers in 2019 accounted for more than 95% of the total market share.
  • The future of the cloud mining market is outside of China.
  • The mining pool segment is not well structured, partnering with independent third-party agencies is the future direction.
  • In the cryptocurrency mining segment, most progressive and positive attitudes are from developed countries, and the future regulatory direction is positive.
  • 2019 is the first year of cryptocurrency financial services development. A number of financial products will be released and competition will become more intense in the near future.
  • Most of the Altcoin mining uses GPUs & CPUs and are mainly located in North America and Europe.
  • PoS is accelerating its acceptance by the industry, and at the same time, it can form an ecosystem through services such as DeFi and centralised lending. Currently, these staking products yield around 8% -12.5% ​APY.
  • TokenInsight estimates that the SHA-256 ASIC market shares of Bitmain, Canaan, Whatminer, and Ebang are roughly at 63%, 18%, 10%, 7% respectively in 2020.
  • The 3rd halving should have a limited impact on the price of Bitcoin in the short term but will have a positive impact in the long run.
  • Mining farms located outside of China are expected to grow at a faster pace.
  • The mining pools will start to integrate more Altcoin mining with huge market potential and risks.
  • More cloud mining products will be launched targeting the broader market.
  • Altcoin mining may transit from GPU / CPU to FPGA gradually and could be occupied by ASIC mining in the long run.
  • Cryptocurrency derivatives will be gradually introduced and developed. Compared with the size of the traditional derivative market, it has huge market opportunities.
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