Four firms are controlling the Bitcoin mining rigs production industry. The biggest gainer? Obviously Bitmain, but who else is in charge of the chip production?
TokenInsight has prepared a report saying that by the end of 2020, these four firms will take complete control over the Bitcoin mining market. Those are the Bitmain, Ebang, Canaan, and MicroBT. During 2020, the companies will eat out 3 percent more from the mining market’s cake. Now, they cumulatively control more than 95% of the network. By the end of 2020, 98% of the market will lie under the firms.
What will the miners do in such circumstances? They typically worry about centralization in the production of area-specific equipment (and code).
According to Johnson Xu, TokenInsight analyst, we can blame the network effect:
“The top four companies consistently have had strong market power in the past; going into the future, this strong market power will translate into the dominant positions of the top four companies.”
Considering that they already have 95% under control, the total power seizure is probably only a matter of time. Johnson Xu sees no possibility that some other companies will enter the field to compete. Cryptocurrencies have many underwater rocks and bugs that can jump out of the blue. Indeed, you can lose all the money or business thanks to a single weak line of code. Read More...