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Cryptocurrency (Coins)

Bitewei Crypto Chip Producer Looks To Rival Bitcoin Mining Giant Bitmain

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Bitewei Crypto Chip Producer Looks To Riva Bitcoin Mining Giant Bitmain

Could Bitewei Become Bitmain’s Rival in the Future?

Bitmain is experiencing very hard moments due to different reasons. Some months ago, it was reported that Bitmain was going to launch an initial public offering (IPO). However, since that moment, there were different issues surrounding Bitmain’s profits.

Another important issue that clearly affected Bitmain was the fact that there are new competitors in the market. These are companies that are launching their own mining devices.

After a conversation with CoinDesk, Bitewei, a mining chip manufacturer located in Shenzhen, believes that it can be a good rival for Bitmain in certain areas. The company is led by Yang Zuoxing, former director of design at Bitmain. Bitewei has also raised 140 million yuan ($20 million dollars) in order to bring new mining chips to the market.

As per Tyler Xiong, COO of the mining pool Bixin, Bitewei’s mining chips could be ‘game changer.’

The company was founded in July 2016, and is considered one of the most efficient hardware manufacturers on the market. According to some tests performed by Bitewei, the next miner WhatsMiner M10 is 30% more efficient in terms of electricity consumption than Bitmain’s AntMiner S9 Hydro.

At the moment, the company received over 1,000 pre-orders of the Whatsminer M10. The product could officially launch on September 19. The average price of the miner is $1,600 dollars and the new product could generate a revenue of $1.6 million.

It seems that Bitmain controls between 80%-85% of the cryptocurrency mining hardware market. Additionally, it has several businesses such as BTC.com and Antpool, which are very important mining pools.

With other competitors such as Whatsminer, the industry becomes more competitive and could be potentially beneficial for the whole industry.

David Vorick, Obelisk’s CEO, said that Bitewei proves that competition is possible and that there should be more companies investing in the cryptocurrency mining industry.

Vorick explained:

“There should be a lot more players in the bitcoin mining space and a lot more manufacturers, especially if we can figure out everything that Whatsminer is doing to get the efficiency gains that they’ve been getting.”

However, Bitewei should prove that it is able to keep alive in an industry that has seen many companies go bankrupt even after offering competitive and high-quality products. The cryptocurrency mining industry is becoming more and more competitive since there are less than 4 million bitcoin left to mine.

The results of the Whatsminer M10 were very positive. In two rounds of testing results on August 10 and 25, Bitwei reported that the machine performs very well, consuming 66 to 68 watts of electricity per 1 trillion hashes (66W/TH).

This is quite important since Bitmain’s AntMiner S9 Hydro (it’s latest release) has a power consumption of around 96 W/TH.

Yang has also commented about the intention to launch a 7nm chip such as the ones launched by Canaan Creative and GMO Internet. At the moment, it is expected to see that in 2019.

Vorick says that Bitewei has now the majority of the design talent that Bitmain had in the past. This may be one of the reasons why Yang does not seem worried about the competition in the market.

Yang started in 2014 as a chip designer at ASICMiner, a bitcoin miner maker that was founded in 2012 by Jiang Xinyu. However, the founder of the company disappeared in January 2015 without any information about his decision.

Yang decided to present the full-custom chip design to Micree Zhan, co-founder and chairman of Bitmain. And indeed, this design became the Antminer S7. The benefits of using a ‘full-custom’ methodology such as the one adopted by Yang is that it allows a designer to maximize the chip’s output at the lowest point of power consumption.

Yang said that he decided to move from Bitmain’s office to Shanghai because he felt he did not fit in. He explained that he ‘didn’t feel respected.’ Jihan Wu, co-founder of Bitmain, agreed to offer him 2 percent of Bitmain’s equity. Zhan did not agree with it and offered 0.5 percent.

As things did not go well with Bitmain, Yang decided to end his contract in June 2016 and launched Bitewei one month later. And Bitewei was able to attract several Bitcoin enthusiasts and veterans. For example, the list of early investors include F2POOL’s co-founders Wang Chun and mao Shixing. Wu Ying, chairman of the investment firm China Capital Group was also present. At the moment, mao and Wang are now Bitewei board members.

However, there are some issues between Bitmain and Bitewei due to the fact that they are still arguing about the intellectual property of the designs made by Yang. Yang explained that Bitmain filed a patent infringement lawsuit against him because Bitewei adopted the ‘serial power circuit design.’

Yang answered explaining that serial power supply circuit designs were widely used and documented.

But things went worse for Bitmain. China’s State Intellectual Property Office (SIPO) decided to invalidate Bitmain’s patent on April 8. The SIPO statement on the matter reads as follows:

“If a technological solution sought by a patent has different characteristics than existing technologies, but such difference is public knowledge, then it is obvious the solution would incorporate this public knowledge.”

It seems that Bitmain’s issues with Bitewei are related not only to the patents, but also to its hardware and market pool dominance. Jihan Wu, Bitmain’s co-founder, has also supported the virtual currency Bitcoin Cash (BCH), born as a hard fork from Bitcoin. Because of it, the Bitcoin community considered him a persona non grata.

According to the research firm Alliance Bernstein, due to the fact that Bitmain supported Bitcoin Cash, the cash flow declined, and in the future the company could be more vulnerable in the market against competitors.

As pers some reports, Bitmain is the owner of 5.7 percent of the total BCH supply valued at $890 million dollars as of Q1 2018. However, since that moment, Bitcoin Cash has severely depreciated.

Yang concluded:

“Our miners’ market share may go above 50 percent. But our own hashing power will never go above 50 percent, in fact, 10 percent will be already good enough.”

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Ripple (XRP)

Ripple Price Analysis: XRP/USD Primed For Further Gains

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Ripple Price Analysis XRP Chart

Ripple price surged higher recently above $0.4400 and $0.4600. XRP to USD is currently correcting lower, but the $0.4255 level is likely to act as a strong support and buy zone.

Key Takeaways: XRP/USD

  • Ripple price traded to a new monthly high at $0.4625 and recently corrected lower against the US Dollar.
  • XRP/USD is testing the $0.4320 support and a major bullish trend line on the 2-hours chart (data feed from Bitstamp).
  • Bitcoin price is also correcting lower from well above $9,400 and Ethereum price is currently below $270.00.

Ripple Price Analysis

Earlier this week, bitcoin price extended gains above $9,300 and $9,400. It helped ripple and its price recently started a strong rise above the $0.4200, $0.4320 and $0.4400 resistance levels. XRP even broke the $0.4500 level and traded to a new monthly high.

Looking at the 2-hours chart, ripple price even traded above the $0.4600 level and settled well above the 50 simple moving average (2-hours, purple). A high was formed at $0.4625 and recently, the price started a sharp downside correction.

Ripple Price Analysis XRP Chart

There was a break below the $0.4520 support and the 50% Fib retracement level of the recent wave from $0.4254 to $0.4625. Moreover, the price broke the $0.4400 support level.

It is currently testing the $0.4320 support and a major bullish trend line on the 2-hours chart. The 76.4% Fib retracement level of the recent wave from $0.4254 to $0.4625 is also acting as a support.

If there is a downside break, the price could test the main support near the $0.4255 level. As long as ripple price is above $0.4255, it is likely to bounce back in the near term.

An initial resistance is near the $0.4400 level, above which ripple is likely to continue higher towards the $0.4480 and $0.4500 levels. If the bulls regain strength, XRP price could even retest the $0.4625 swing high.

Overall, ripple price is trading with a strong bullish bias above $0.4255 and $0.4150. Therefore, there are high chances of a fresh increase above the $0.4400 and $0.4480 resistance levels in the coming sessions.

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Bitcoin (BTC)

Bitcoin Price Analysis: BTC Surging, Next Stop Could Be $9,750

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Bitcoin Price Analysis BTC Price

In the past few days, there were strong gains in bitcoin price above $9,000. BTC to USD is surging and it seems like it could even trade towards the $9,750 or $9,800 level in the near term.

Key Takeaways: BTC/USD

  • Bitcoin price is surging higher and is positioned nicely above the $9,000 level against the US Dollar.
  • BTC/USD broke a crucial barrier near $9,200 and a contracting triangle resistance on the 2-hours chart (data feed from Bitstamp).
  • Ethereum, ripple, and bitcoin cash also gaining traction and moving higher.

Bitcoin Price Analysis

After setting above the $8,500 resistance, bitcoin price started a strong upward move. BTC surpassed many hurdles near the $8,850 and $9,000 levels to continue higher in the past few sessions.

Looking at the 2-hours chart, bitcoin even settled above the $9,100 level and the 50 simple moving average (2-hours, purple). The bulls gained traction and the price recently traded to a new 2019 high at $9,403.

Bitcoin Price Analysis BTC Price

It corrected lower from $9,403 and declined below the $9,200 and $9,100 levels. However, the price found support near $8,825 and it remained well above the 50 simple moving average (2-hours, purple).

Recently, it climbed back above $9,100 and broke a crucial barrier near $9,200 plus a contracting triangle resistance on the same chart. It is now trading above the 76.4% Fib retracement level of the recent correction from $9,403 to $8,826.

An immediate resistance is near the last swing high at $9,400, above which the price could accelerate towards the $9,500 and $9,550 levels.

The main resistance above $9,500 is near the $9,750 level. The 1.618 Fib extension level of the recent correction from $9,403 to $8,826 is near the $9,750 level. Above $9,750, the bulls are likely to target the key $10K level.

On the downside, an initial support for bitcoin price is near the $9,200 level. If there is a fresh downside correction, BTC to USD might retest the $9,000 pivot level. If there are more losses, the downside extension could lead the price towards the $8,800 or $8,750 level. Overall, BTC price is likely to accelerate towards $9,750 or $10K.

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Ethereum (ETH)

Ethereum Price Analysis: ETH Approaching Significant Support Area

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Ethereum Price Analysis ETH Chart

There was another rejection noted near $265.00 in Ethereum vs the US Dollar. ETH/USD is currently declining and approaching towards a couple of important supports near $254.00 and $250.00.

Key Takeaways: ETH/USD

  • Ethereum price formed a short term top near the $264.4 level and declined against the US Dollar.
  • ETH/USD is currently approaching the $254.00 support and a bullish trend line on the 2-hours chart (data feed from Bitstamp).
  • Bitcoin price remains in an uptrend and it could accelerate gains above the $8,300 level.

Ethereum Price Analysis

Recently, bitcoin price gained momentum and broke the $8,100 and $8,200 resistance levels. However, Ethereum price failed to gain traction and formed a short term top near the $264.4 level.

Looking at the 2-hours chart, Ethereum price started a downside correction from the $264.41 high and declined below the $260.00 level. There was a break below the 23.6% Fib retracement level of the last rally from the $236.89 to $264.41.

Ethereum Price Analysis ETH Chart

Besides, there was a break below the $258.00 level, but the price found support near $255.00. Moreover, the price is approaching the $254.00 support and a bullish trend line on the 2-hours chart.

Below the trend line, the main support is near the $250.20 level and the 50 simple moving average (2-hours, purple). The 50% Fib retracement level of the last rally from the $236.89 to $264.41 is also near the $250.65 level to act as a support.

If there is a downside break below the $250.00 support, the price could extend losses and decline towards the $243.50 zone. The 76.4% Fib retracement level of the last rally from the $236.89 to $264.41 is also near $243.40.

Conversely, if the trend line support holds, the price is likely to start a fresh increase in the coming sessions. An initial resistance is near $260.00 and a connecting bearish trend line. A break above the $260.00 barrier might start a strong rally in Ethereum price above the $265.00 level.

Overall, ETH price is trading with a positive bias as long as it is above $250.00, and it could rise again above $260.00 and $265.00.

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