TAMC Research Institute: Mining Market Revenue Report in May 2019

Mining Market Revenue Report in May 2019

Key points of this report:

Preface

Coin price: The overall market rose by 53.6%, and the average price of the top ten mining coins rose by 67.7%

Total network computing power: The average computing power of the top ten mining currencies increased by 11%, a decrease of 3 percentage points from the previous month.

Unit computing power income: The average daily income of the top ten currencies increased by 60%

Mining machine cost: As market demand increases, ASIC mining machine manufacturers generally increase prices; graphics card prices decrease, with an average price change of -5.94%

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

Summarize

Details of this report:

1. Introduction

This report provides mining revenue of mainstream POW mining coins, and the static payback time calculated by the unit computing power revenue on a certain day, for reference only. 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.

The current market rebound is more favorable to the mining industry. Cheap hydropower during the flood season will reduce the electricity cost of mining and increase the income of miners. The combined increase in currency prices will help form a virtuous circle.

2. Coin price: The overall market increased by 53.6%, and the average increase of the top ten mining coins was 67.7%.

Following a large-volume breakthrough and a long positive candlestick in early April, which completely broke through the previous box-shaped oscillation range, the market continued to gain momentum in May, breaking through the 250 billion US dollar mark with a large volume, and the 24-hour trading volume exceeded 121.3 billion US dollars, a record high; it then fluctuated upward and closed at around 264.9 billion US dollars, up 53.6% from the beginning of the month. The market's bullish sentiment was established, and the upward market space has been reopened.

Figure 1 Market trends in the past three months

Source: CoinMarketCap, TokenMania

Figure 2: Price fluctuations of mainstream mining currencies this month

Source: CoinMarketCap, TokenMania

In May, all the top ten mainstream mining currencies rose. The average price increase of the top ten mining currencies was 67.7%, among which BSV price increased by 253.1%, ranking first; BTC, ETH, BCH, and BSV outperformed the market. Generally speaking, the rise in currency prices will shorten the payback period of mining machines.

3. Total network computing power: The average computing power of the top ten mining currencies increased by 11%, a decrease of 3 percentage points from the previous month

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.

Table 1: Computing power of mainstream mining currencies in the past three months

Source: Block Explorer, TokenMania

Figure 3 Changes in the computing power of mainstream mining currencies this month

Source: Block Explorer, TokenMania

In May 2019, the overall computing power of the top ten mining currencies showed a strong upward momentum, with the total computing power increasing by an average of 11%, a decrease of 3 percentage points from the previous month. The rise in coin prices is usually conducive to attracting new computing power to enter the market. This month, the computing power of 8 currencies increased, and only ETC and DCR computing power decreased. Among the top ten mining currencies, BSV's computing power increased the most, increasing by 71%, followed by XMR, with a computing power increase of 22%, and ZEC computing power increased by 12%; Litecoin will be the first to halve in August 2019 (9 months ahead of Bitcoin), and the computing power increased by 8% in May. BSV's computing power increased by 71% this month, which is directly related to the 253.1% increase in BSV's coin price, reflecting the characteristics of miners pursuing short-term profit maximization.

Figure 4: Changes in the growth rate of 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

4. Unit computing power income: The average daily income of the top ten currencies increased by 60%

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.

Table 2 Daily revenue per unit of computing power of mainstream mining currencies (unit: yuan)

Source: TokenMania

[Note] There are differences in the minimum unit computing power between different currencies: BTC is 1THash/s, ETH is 1MHash/s, BCH is 1THash/s, BSV is 1THash/s, LTC is 1GHash/s, XMR is 1KHash/s, Dash is 1GHash/s, ETC is 1MHash/s, ZEC is 1KHash/s, and DCR is 1THash/s.

Figure 5 Changes in unit computing power revenue of mainstream mining currencies this month

Source: TokenMania

Figure 6: Changes in the growth rate of unit computing power income of mainstream mining currencies in the past six months

Source: TokenMania

Affected by the sharp rise in the price of coins in May, the daily income per unit of computing power of the top ten mainstream mining coins all increased this month, and the average daily income per unit of computing power of the top ten coins increased by 60%. BSV was affected by the sharp rise in the price of coins by 253.1%, and the daily income per unit of computing power increased by 111% compared with last month, ranking first among the top ten mining coins. The top four coins in terms of the increase in daily income per unit of computing power this month are BSV (111%), ETH (57%), ETC (55%), and BCH (50%).

5. Mining machine cost

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 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.

Table 3 Mainstream mining currency encryption algorithms

Source: TokenMania

5.1 ASIC Mining Machines: Market Demand Increases, Mining Machine Manufacturers Raise Prices

In May 2019, affected by the sharp rise in the price of coins, the market demand for mining machines increased, and mining machine manufacturers generally raised prices . Due to the drastic changes in the supply and demand relationship of mining machines and the sharp price fluctuations, the price statistics are for reference only. In May, the spot price of Canaan's mining machines increased by 20% to 40%, and the spot price of Bitmain's mining machines increased by 17% to 33%. In September 2019, the futures price decreased by about 10%. The price on the official website of Ebang International shows that there is no price increase, but the mining machines are all sold out.

Table 4 Price changes of mainstream ASIC mining machines

Source: Bitmain, Avalonminer, Ebit, TokenMania

5.2. Graphics card price: Graphics card prices dropped, with an average price change of -5.94%

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. Due to the large number of sales channels for graphics cards, prices in different regions will vary, and the following is for reference only.

Figure 7 Price changes of various graphics cards this month

Source: Tmall, JD.com, Amazon, TokenMania

Figure 8 Graphics card price changes in the past six months

Source: Tmall, JD.com, Amazon, TokenMania

The average price of sample graphics cards fell by 5.94% this month. The prices of Nvidia's GTX1070Ti and GTX1080Ti remained the same, and the prices of other graphics cards fell to varying degrees. With the recovery of the currency market and the increase in the price of mining machines, the demand for graphics card mining may increase in the future, leading to an increase in graphics card prices.

6. Mining income analysis: The cryptocurrency market is recovering, and the payback period of BTC and other mining is greatly shortened

As of mid-June 2019, based on the full network data of each currency, assuming that the electricity fee is uniformly 0.45 yuan, the static mining payback period of each sample mining machine was calculated; for the payback period of mining machines adapted to different currencies, the shortest time data was selected.

Table 5 Payback period of mainstream cryptocurrency mining machines

Source: Public data compilation, TokenMania

The seven mining machines with the shortest payback period are: Antminer L3++ (68 days, LTC), Antminer Z11 (104 days, ZEC), Avalon A921 (147 days, BTC), Avalon A920 (147 days, BTC), Avalon A841 (152 days, BTC), Ant S1753T (152 days, BTC), Avalon A920P (155 days, BTC); the seven mining machines with the longest payback period are: 1060 (6G) 6 cards (818 days, ETH), Ant D5119G ( 702 days, DASH), RX5806 card (646 days, ETH), Ebit E9i (491 days, BTC), Ant DR535T (408 days, DCR), Ebit E11++ (238 days, BTC), Ebit E11+ (228 days, BTC); the five mining machines with the shortest payback period of the sample BTC mining machines are: Avalon A921 (147 days), Avalon A920 (147 days), Avalon A841 (152 days), Ant S1753T (152 days), Avalon A920P (155 days).

On the whole, the payback period of the BTC mining machines in the sample mining machines this month is roughly between 150 days and 240 days, which is about 40% shorter than the calculated result of last month. On the other hand, the payback period of the two graphics card mining machines this month is still long and the risk is relatively high.

[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 and it is for reference only.

Figure 9 Comparison of the return on investment of mainstream currencies in the past three months

Source: TokenMania

The payback period of various currencies has generally shortened this month. Affected by the sharp rise in currency prices, the mining payback period of BCH and BSV has dropped significantly, with a drop of more than 60%; the payback time of ETH, ETC, ZEC and XMR has not dropped much, with a drop of less than 30%.

6. Conclusion

The current market rebound is more favorable to the mining industry. Cheap hydropower during the flood season will reduce the electricity cost of mining and increase the income of miners. The combined increase in currency prices will help form a virtuous circle.

Currency price: The overall market rose by 53.6%, and the average increase of the top ten mining currencies was 67.7%. After the large-volume breakthrough in early April and the complete breakthrough of the previous box-shaped oscillation range, the overall market continued to exert its strength in May, breaking through the 250 billion US dollar mark, and the 24-hour trading volume exceeded 121.3 billion US dollars, setting a new record high; then it fluctuated upward and closed at around 264.9 billion US dollars, an increase of 53.6% from the beginning of the month. The market's bullish sentiment was established, and the upward market space has been reopened.

In May, all the top ten mainstream mining currencies rose. The average price increase of the top ten mining currencies was 67.7%, among which BSV price increased by 253.1%, ranking first; among the top ten mining currencies, BTC, ETH, BCH, and BSV 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 11%, a decrease of 3 percentage points from the previous month. In May 2019, the overall upward momentum of the computing power of the top ten mining currencies was strong, and the total computing power of the top ten mining currencies increased by an average of 11%, a decrease of 3 percentage points from the previous month. The rise in coin prices is usually conducive to attracting new computing power to enter the market. This month, the computing power of 8 currencies increased, and only ETC and DCR computing power decreased. Among the top ten mining currencies, BSV's computing power increased the most, up 71%, followed by XMR, with a computing power increase of 22%, and ZEC's computing power increased by 12%; Litecoin will be the first to halve in August 2019 (9 months ahead of Bitcoin), and the computing power increased by 8% in May. BSV's computing power increased by 71% this month, which is directly related to the 253.1% increase in BSV's coin price.

Unit computing power income: The average daily income of the top ten currencies increased by 60%. Affected by the overall sharp increase in currency prices in May, the unit computing power daily income of the top ten mainstream mining currencies all increased this month, and the average unit computing power daily income of the top ten currencies increased by 60%. BSV was affected by the sharp increase in currency prices by 253.1%, and the unit computing power daily income of BSV increased by 111% compared with last month, ranking first among the top ten mining currencies. The top four currencies in terms of unit computing power daily income increase this month are BSV (111%), ETH (57%), ETC (55%), and BCH (50%).

ASIC mining machines: market demand increases, mining machine manufacturers raise prices. In May 2019, affected by the sharp rise in the price of coins, the market demand for mining machines increased, and mining machine manufacturers raised prices. Due to the drastic changes in the supply and demand relationship of mining machines and the sharp price fluctuations, price statistics are for reference only. In May, the spot price of Canaan's mining machines increased by 20% to 40%; the spot price of Bitmain's mining machines increased by 17% to 33%, and the futures price in September 2019 decreased by about 10%; the price on the official website of Ebang International showed no price increase, but the mining machines were all sold out.

Graphics card prices: Graphics card prices dropped, with an average price change of -5.94%. The latest prices of the eight selected graphics cards have dropped compared to last month, and the average price of sample graphics cards has dropped by 5.94% this month. Nvidia's GTX1070Ti and GTX1080Ti prices remain the same, and the prices of other graphics cards have dropped to varying degrees. With the recovery of the currency market and the increase in the price of mining machines, the demand for graphics card mining may increase in the future.

Mining income analysis: The currency market has rebounded, and the payback period of mining such as BTC has been greatly shortened. As of June 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 sample mining machine is calculated. The same mining machine can mine different cryptocurrencies. When evaluating the payback period of a mining machine, it is natural to select the data with the highest profit and the shortest payback period.

The seven mining machines with the shortest payback period are: Antminer L3++ (68 days, LTC), Antminer Z11 (104 days, ZEC), Avalon A921 (147 days, BTC), Avalon A920 (147 days, BTC), Avalon A841 (152 days, BTC), Ant S1753T (152 days, BTC), Avalon A920P (155 days, BTC); the seven mining machines with the longest payback period are: 1060 (6G) 6 cards (818 days, ETH), Ant D5119G ( 702 days, DASH), RX5806 card (646 days, ETH), Ebit E9i (491 days, BTC), Ant DR535T (408 days, DCR), Ebit E11++ (238 days, BTC), Ebit E11+ (228 days, BTC); the five mining machines with the shortest payback period of the sample BTC mining machines are: Avalon A921 (147 days), Avalon A920 (147 days), Avalon A841 (152 days), Ant S1753T (152 days), Avalon A920P (155 days).

Overall, the payback period of various currencies has generally shortened this month. Affected by the sharp rise in the price of coins, the payback period of BCH and BSV has dropped significantly, with a drop of more than 60%; the payback time of ETH, ETC, ZEC and XMR has not dropped much, with a drop of less than 30%. The payback period of BTC mining machines in the sample mining machines this month is roughly between 150 and 240 days, which is about 40% shorter than the calculated result last month; on the other hand, the payback period of graphics card mining machines is long and risky to buy a new graphics card for mining.

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