Bitewei, has raised 140 million yuan (around $20 million) to launch mining chips that are as much as 30% more efficient than their major competitor, and long time industry leader, Bitmain. The Shenzhen, China based chip manufacturer is led by Yang Zuoxing, the former director of design at Bitmain.
Their newest product, to be called “WhatsMiner M10.” According to test results on energy consumption published by Bitewei, is roughly 30% more efficient than Bitmain's most recent flagship product the AntMiner S9 Hydro. They released data from two test results, both showing the machine consumed 66 watts to 68 watts of electricity per 1 trillion hashes (66W/TH). According to data published by Bitmain about their newest product, power consumption was roughly 96 watts per 1 trillion hashes.
Bitewei plans to launch the new ASIC miner product on September 19th, and claims to have received pre-orders of over 1,000 units. Pre-sale began in mid August. The average price around $1,600 depending on how many unites were purchased in the order, and will likely generate a revenue total well beyond $1.6 million.
Competition Is More Than Hardware
Data released by Bitmain with information about the company for their recent IPO shows that their hardware controls 85% of the total cryptocurrency mining hardware market. 30% of that comes from Bitmain’s work with BTC.com and Antpool mining pools alone. This imbalance is often argued to be a major fault in the long term viability of cryptocurrencies like Bitcoin. The founding principal of P2P digital currency is that the network is decentralized. But in this case, Bitmain is slowly influencing almost the entire network, and those two mining pools are centralizing the otherwise decentralized network.
"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." - David Vorick, CEO of Obelisk (ASIC miner manufacturer)
Competitive mining chip manufacturers will benefit the industry in terms of decentralization, and further pushing the boundaries of technological innovation. Bitmain will be forced to work harder towards more efficient or entirely new hardware. But their influence is long imprinted on the industry, leaving little room for Bitewei to start building a following.
By: BGN Editorial Staff