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Q2 2019 report: the supply of mining machines doesn’t meet the demand
NEWS
September 13  |  3 min read

Report: the Demand for Mining Machines Outperforms the Supply, Except for Litecoin Miners

The COIN360 Editorial Team

TokenInsight, a San Francisco-based data analytics platform, released its Q2 2019 Cryptocurrency Mining Industry Quarterly Report on Sept. 13 with major updates on the crypto mining scene, revealing that despite the “considerable hike” in the price of mining machines, the supply still failed to meet market demand in the second quarter, thus making it difficult for miners to buy the hardware, the company concluded.

In Q2 2019, popular mining gear, like the Antminer S17 and other leading miners, were selling out as future deliverables. Customers whose orders were confirmed in Q2 2019 are set to receive and install these gadgets in early Q4 2019. Meanwhile, Litecoin’s Scrypt miners were “relatively unpopular,” and “have been unshelled from the official websites of most of the major mining hardware manufacturers.”

Through a medium post the analytics company provided insights on general industry news, hashrate ratings, and “many other mining-related topics”. Taking note of soaring Bitcoin prices, TokenInsight said that there was a “fast payback of the mining industry.” Generally, their findings revealed that the “cost recovery period was lowered by almost 100 days due to the influence of Bitcoin’s price.”

Given the projected rise in mining difficulty, TokenInsight is urging miners to invest in gear with “high hash rates (such as the whatsminer M20S, with a hashrate of 68 Th/s)” for cost recovery purposes.

An extract from their report reads:

“The High Power Efficiency Bitcoin Mining Hardware continued to perform well in the second quarter of 2019. Especially, Innosilicon’s T3-43T Bitcoin miner received widespread attention in the market as it reduces the cost payback cycle by nearly 40% in the second quarter.”

Given the direct relationship between Bitcoin prices, the network state and mining profitability, TokenInsight wrote that based on historical data, there is “a positive correlation between Bitcoin price and mining difficulty, which means that the change (rise/fall) in the direction of Bitcoin price and mining difficulty is consistent under normal circumstances.” The company projects that Bitcoin mining difficulty will likely rise throughout Q3 and Q4 2019.

Long term, the ratio of price-to-mining difficulty is likely to decrease over a one-year period from Aug. 14, 2019 to Aug. 14, 2020, TokenInsight projects, pointing out the 95% confidence interval of Bitcoin price in 2020 ranging from $17,077 to $23,276.