The cryptocurrency market is recovering, and the payback period of BTC mining has been greatly shortened

Original | TokenMania Source | CoinVoice (ID: coinvoice)

Key points of this report:

Preface

Coin price: The overall market rose by 19.82%

Total network computing power: The computing power of the top ten mining currencies increased by an average of 14%

Mining machine cost: Market demand increases, new mining machines are released one after another; mid- and low-end graphics cards are reduced in price

Mining revenue analysis: The cryptocurrency market is recovering, and the payback period of BTC mining has been greatly shortened

Summarize

Preface

This report provides mining revenue of mainstream POW mining coins. There are three main factors that affect the payback period of miners: coin price, total network computing power and mining machine price. The shorter the payback period, the better the current market's money-making effect, and the higher the possibility of potential large capital entering the mining market.

Since April, new mining machines have been launched one after another, and the prices of second-hand mining machines have also been on the rise. The current market rebound is more favorable to the mining industry. Cheap hydropower in the flood season will reduce the electricity cost of mining, increase the income of miners, and the increase in the price of coins will help form a virtuous circle.

The overall price of the currency increased by 19.82%

In April (April 1, 2019 - April 30, 2019), the total market value of global blockchain digital assets broke through the previous box-shaped oscillation range at the beginning of the month, setting a four-month high, once reaching US$185 billion, and the market trading volume increased significantly.

The market then maintained high-level fluctuations, closing at US$172.9 billion in April, up US$28.6 billion from US$144.3 billion at the beginning of the month, a growth of 19.82%.

The rise of the market boosted market confidence, activated existing funds, and established a bullish sentiment in the market in a short period of time; from the perspective of volume, the market's offense in April was more aggressive, and the upward market space has been reopened.

Market trends in the past three months

Source: CoinMarketCap, TokenMania

△The rise and fall of mainstream mining currencies in April Source: CoinMarketCap, TokenMania

In April, the top ten mainstream mining currencies generally rose, with only BSV and ZEC falling, down 19% and 2% respectively. The average price increase of the top ten mining currencies was 16%, among which BCH price rose 62.2%, ranking first; among the top ten mining currencies, BCH, BTC, LTC, DCR, and ETC outperformed the market. Generally speaking, the rise in currency prices will shorten the payback period of mining machines.

The average hash rate of the top ten mining currencies increased by 14%

In theory, the proportion of computing power controlled by miners in the entire network determines the success rate of their mining. The higher the proportion, the greater the possibility of miners receiving rewards. At the same time, the increase in the computing power of the entire network will lead to a relative increase in the difficulty of mining for miners.

△Computing power of mainstream mining currencies in the past three months Source: Block Explorer, TokenMania

△ Changes in the computing power of mainstream mining currencies in April Source: Block Explorer, TokenMania

In April 2019, the overall upward momentum of the top ten mining currencies was strong, with the total computing power of the top ten mining currencies increasing by an average of 14%, an increase of 9% month-on-month. The rise in coin prices is usually conducive to attracting new computing power to enter the market. This month, the computing power of eight currencies including DASH, LTC, and DCR increased, and only the computing power of BSV and XMR decreased.

Among the top ten mining currencies, BCH's computing power increased the most, up 46%, followed by DCR, with a computing power increase of 42%, and ZEC's computing power increased by 32%. Litecoin will be the first to halve in August 2019 (9 months ahead of Bitcoin), and its computing power increased by 11% in April. BSV's computing power fell sharply by 33% this month, which is directly related to the 46% increase in BCH's computing power, reflecting the miners' direct response to BSV being delisted by many exchanges.

△ Changes in the computing power of mainstream mining currencies in the past six months Source: Block Explorer, TokenMania

[Note]: 1M=10^6Hash/s, 1G=10^9Hash/s, 1T=10^12Hash/s, 1P= 10^15Hash/s, 1E=10^18Hash/s

Mining costs

Due to the different encryption algorithms of various currencies, the current types of mining machines are mainly divided into ASIC mining machines and graphics card mining machines. Due to the specificity of the former, the price of its mining machines is more obviously affected by the currency price. Among the top ten mainstream mining currencies, only XMR does not have an ASIC mining machine. Although ETH and ETC have 3 ASIC mining machines, their advantages over graphics card mining machines are not obvious. The rest of the currencies have been occupied by ASIC mining machines.

△Mainstream mining currency encryption algorithms Source: TokenMania

4.1 ASIC Mining Machines: Market demand increases, and new mining machines are released one after another

In April 2019, affected by the rise in the price of coins, the market demand for mining machines increased, and new mining machines were released one after another. On April 8, Bitmain officially released the Antminer S17 Pro, which is available in two versions: 50T and 53T, priced at ¥14,200 and ¥15,040 respectively.

At the same time, Bitmain simultaneously launched a 7nm mining machine S17, which is available in two versions: 53T and 56T, priced at ¥13,980 and ¥14,760 respectively. On April 28, Bitmain officially launched the new Antminer ANTMINER T17, with a computing power of 40T and a price of ¥9400. In terms of mining machine prices, Canaan Creative's mining machine prices increased in April, while Bitmain and Ebang International remained stable.

△Price changes of mainstream ASIC mining machines Source: Bitmain, Avalonminer, Ebit, TokenMania

4.2 Graphics card prices: mid- and low-end graphics cards have seen price cuts, with an average price change of -3%

Due to different encryption algorithms, ETH and other cryptocurrencies currently use GPU mining machines, whose core components are customized mining motherboards equipped with 6 to 12 graphics cards. The current mainstream graphics cards are AMD's RX series and NVIDIA's GTX series graphics cards. Due to the large number of sales channels for graphics cards, prices in different regions will vary. The following is for reference only.

△ Changes in graphics card prices in April Source: Tmall, JD.com, Amazon, TokenMania

△ Graphics card price changes in the past six months Source: Tmall, JD.com, Amazon, TokenMania

As the secondary market recovers, the motivation for new miners to enter the market has increased, but the prices of mid- and low-end graphics cards continue to decline, with the average price of the eight major graphics cards falling by 3% this month.

The prices of AMD's three mid-to-low-end graphics cards this month dropped compared to March, with the RX580 having the largest drop of 21%; the prices of two mid-to-high-end graphics cards, Vega56 and Vega64, remained the same. In addition, the price of Nvidia's GTX1060 remained the same, while the prices of two mid-to-high-end graphics cards, GTX1070Ti (9%) and GTX1080Ti (9%), increased.

Mining Revenue Analysis

5.1 Unit computing power income: The average daily income of the top ten currencies increased by 3%

Unit computing power income refers to the daily mining income calculated based on the proportion of unit computing power of different currencies in the entire network and the fluctuation of currency prices, excluding the impact of mining machine costs. Taking Bitcoin as an example, the unit computing power income refers to the RMB income that can be obtained from 1THash/s computing power in a single day. In theory, the computing power controlled by miners is proportional to the daily income.

△ Daily revenue per unit of computing power of mainstream mining currencies (unit: yuan) Source: TokenMania

[Note] The minimum unit of computing power varies among different currencies: BTC is 1THash/s, ETH is 1MHash/s, BCH is 1THash/s, BSV is 1THash/s, LTC is 1GHash/s, XMR is 1KSol/s, Dash is 1GHash/s, ETC is 1MHash/s, ZEC is 1KHash/s, and DCR is 1THash/s.

△ Changes in unit computing power income of mainstream mining currencies this month Source: TokenMania

Affected by the changes in currency prices and computing power, the unit computing power income of ETH, DASH, ZEC and DCR among the top ten mainstream mining currencies this month has decreased, while the unit computing power income of other currencies has increased. The average unit computing power daily income of the top ten currencies has increased by 3%.

Affected by a sharp increase of 32% in computing power and a decrease in the price of the currency, ZEC's daily revenue per unit of computing power fell sharply by 26% month-on-month, ranking first among all currencies; DASH and DCR's daily revenue per unit of computing power fell by 20% and 17% respectively. The top four currencies in terms of daily revenue per unit of computing power this month are BTC (47%), BSV (18%), LTC (14%), and XMR (9%).

△ Changes in the unit computing power income of mainstream mining currencies in the past six months Source: TokenMania

5.2 Mining machine payback period: The cryptocurrency market has recovered, and the BTC mining payback period has been greatly shortened

As of early May 2019, based on the full network data of each currency, assuming that the electricity fee is uniformly 0.45 yuan, the static payback period of mining for each currency was calculated.

△The payback period of mainstream currency mining machines Source: Public data compilation, TokenMania

△Comparison of the return on investment of mainstream cryptocurrency mining machines in the past three months Source: TokenMania

Affected by the general rise in the prices of mainstream mining currencies, the payback period of mining machines of various currencies has generally shortened this month. The payback period of BTC mining has dropped significantly, while the payback period of ETH, DASH and ZEC mining machines has been slightly extended.

In terms of ASIC mining machines, Bitmain's S9 series mining machines have made a comeback after the rise in BTC prices. Currently, the payback period of S9j 14T is 363 days, and the payback period of S15 mining machine has been greatly shortened from 304 days to 281 days; the payback periods of the newly released mining machines S17 53T and S17Pro 50T this month are 240 days and 245 days respectively; the payback period of LTC mining machine L3++ has been shortened to 167 days.

In addition, the payback period of some mining machines has been extended, and some of them have lost their purchase value. The payback period of ZEC mining machines Z9 and Z11 has been extended to 374 days and 119 days; the payback period of DCR mining machine DR5 has been significantly extended to 750 days this month, and the payback period of DASH mining machine D5 has been significantly extended to 1055 days this month, which has basically lost its purchase value.

On the other hand, among the graphics card mining machines this month, the ETC series has the shortest payback period of 861 days. Currently, the payback period of graphics card mining is long and the risk is relatively high.

A horizontal comparison shows that the Z11 mining machine released by Bitmain in March has the shortest payback period this month, which is 119 days, followed by the LTC mining machine L3++, which is 167 days; the payback periods of Bitmain's newly sold mining machines S17 53T and S17Pro 50T are 240 days and 245 days respectively; the payback periods of S15 and S9j are 281 days and 363 days respectively. In addition, the payback periods of other mining machines are generally longer.

[Note] The above payback period is a static theoretical payback period. There is a certain deviation between this payback period and the actual payback period. It does not take into account the changes in mining costs and electricity prices and is for reference only.

Summarize

Since April, new mining machines have been launched one after another, and the prices of second-hand mining machines have also been on the rise. The current market rebound is more favorable to the mining industry. Cheap hydropower in the flood season will reduce the electricity cost of mining, increase the income of miners, and the increase in the price of coins will help form a virtuous circle.

Currency price: The overall market rose by 19.82%, and the average increase of the top ten mining currencies was 16%. In April (April 1, 2019 - April 30, 2019), the total market value of global blockchain digital assets broke through the big positive line at the beginning of the month, completely breaking through the previous box shock range, setting a new high in four months, once reaching 185 billion US dollars, and the market transaction volume increased significantly.

The market then remained volatile at a high level, closing at $172.9 billion in April, up $28.6 billion or 19.82% from $144.3 billion at the beginning of the month. The rise in the market boosted market confidence, activated existing funds, and established a bullish sentiment in the market in a short period of time; from the perspective of volume, the market's offensive in April was relatively aggressive, and the upward market space has been reopened.

In April, the top ten mainstream mining currencies generally rose, with only BSV and ZEC falling, down 19% and 2% respectively. The average price increase of the top ten mining currencies was 16%, among which BCH price rose 62.2%, ranking first; among the top ten mining currencies, BCH, BTC, LTC, DCR, and ETC outperformed the market. Generally speaking, the rise in currency prices will shorten the payback period of mining machines.

Total network computing power: The computing power of the top ten mining currencies increased by an average of 14%, an increase of 9 percentage points from the previous month. In April 2019, the overall upward momentum of the computing power of the top ten mining currencies was strong, with the total computing power of the top ten mining currencies increasing by an average of 14%, an increase of 9 percentage points from the previous month. This month, the computing power of eight currencies including DASH, LTC, and DCR increased, and only the computing power of BSV and XMR decreased.

Among the top ten mining currencies, BCH's computing power increased the most, up 46%, followed by DCR, with a computing power increase of 42%, and ZEC's computing power increased by 32%. Litecoin will be the first to halve in August 2019 (9 months ahead of Bitcoin), and its computing power increased by 11% in April. BSV's computing power fell sharply by 33% this month, which is directly related to the 46% increase in BCH's computing power, reflecting the miners' direct response to BSV being delisted by many exchanges.

Mining machine cost: As market demand increases, new mining machines are released one after another. On April 8, Bitmain officially released the Antminer S17 Pro, which is available in two versions: 50T and 53T, priced at ¥14,200 and ¥15,040 respectively.

At the same time, Bitmain simultaneously launched a 7nm mining machine S17, which is available in two versions: 53T and 56T, priced at ¥13,980 and ¥14,760 respectively. On April 28, Bitmain officially launched the new Antminer ANTMINER T17, with a computing power of 40T and a price of ¥9400. In terms of mining machine prices, Canaan Creative's mining machine prices increased in April, while Bitmain and Ebang International remained stable.

Graphics card prices: mid- and low-end graphics cards fell in price, with an average price change of -3%. As the secondary market picks up, the motivation for incremental miners to enter the market has increased, but mid- and low-end graphics card prices continue to fall, with the average price of the eight major graphics cards falling by 3% this month.

The prices of AMD's three mid-to-low-end graphics cards dropped this month compared to March, with the RX580 having the largest drop of 21%; the prices of two mid-to-high-end graphics cards, Vega56 and Vega64, remained the same. In addition, the price of Nvidia's GTX1060 remained the same, while the prices of two mid-to-high-end graphics cards, GTX1070Ti (9%) and GTX1080Ti (9%), increased.

Unit computing power income: The average daily income of the top ten currencies increased by 3%. Affected by the changes in currency prices and computing power, the unit computing power income of ETH, DASH, ZEC and DCR among the top ten mainstream mining currencies this month decreased, while the unit computing power income of other currencies increased. The average daily unit computing power income of the top ten currencies increased by 3%.

Affected by a sharp increase of 32% in computing power and a decrease in the price of the currency, ZEC's daily revenue per unit of computing power fell sharply by 26% month-on-month, ranking first among all currencies; DASH and DCR's daily revenue per unit of computing power fell by 20% and 17% respectively. The top four currencies in terms of daily revenue per unit of computing power this month are BTC (47%), BSV (18%), LTC (14%), and XMR (9%).

Mining machine payback period: The cryptocurrency market has rebounded, and the BTC mining payback period has been greatly shortened. Affected by the general rise in the prices of mainstream mining currencies, the payback period of mining machines of various currencies has generally shortened this month, the BTC mining payback period has dropped significantly, and the payback period of ETH, DASH and ZEC mining machines has been slightly extended.

In terms of ASIC mining machines, Bitmain's S9 series mining machines have made a comeback after the rise in BTC prices. Currently, the payback period of S9j 14T is 363 days, and the payback period of S15 mining machine has been greatly shortened from 304 days to 281 days; the payback periods of the newly released mining machines S17 53T and S17Pro 50T this month are 240 days and 245 days respectively; the payback period of LTC mining machine L3++ has been shortened to 167 days.

In addition, the payback period of some mining machines has been extended, and some of them have lost their purchase value. The payback period of DCR mining machine DR5 has been greatly extended to 750 days this month, and the payback period of DASH mining machine D5 has been greatly extended to 1055 days this month, which basically lost their purchase value. On the other hand, among the graphics card mining machines this month, the ETC series has the shortest payback period of 861 days. Currently, the payback period of graphics card mining is long and the risk is relatively high.

A horizontal comparison shows that the Z11 mining machine released by Bitmain in March has the shortest payback period this month, which is 119 days, followed by the LTC mining machine L3++, which is 167 days; the payback periods of Bitmain's newly sold mining machines S17 53T and S17Pro 50T are 240 days and 245 days respectively; the payback periods of other mining machines are relatively long.