Igor Bubelov About Blog Photos

State of Bitcoin Mining

November 25, 2020


Funds such as the Grayscale Bitcoin Trust, reportedly on track to hold 500,000 bitcoins by the end of the year, have been buying bitcoin at a rate that outpaces the speed at which they are mined.

Chinese miners have had large competitive advantages since the ASIC era began in 2014, getting first access to new hardware because manufacturers are based there. Ultimately, the emergence of institutional money is helping drive hashrate redistribution in the West. So, from a mining decentralization standpoint, it’s very good.

The new Stratum V2 mining protocol which is included in the OS will eventually grant miners the ability to choose what transactions are included in blocks, known as Job Negotiation, instead of pools choosing, bringing more power to individual miners.