One of the biggest names in the market right now is Bitmain as there has been very little in terms of competition as none of the providers have had the weight to challenge Bitmain.
Things could change very quickly as Bitmain has suffered in recent times especially because it has struggled to launch its new initial public offering (IPO). The IPO was supposed to raise billions of dollars in funds but has been downgraded from that initial estimate. The other concern is the emergence of a new rival in the market known as Bitewei.
Bitewei Explodes Onto The Scene
Bitewei is a Shenzhen-based hardware manufacturer headed by Bitmain's former head of design, Yang Zuoxing. The company has already raised $20 million in investments and plans to start rolling out innovative mining technology that will change the mining landscape. The upcoming release of the Whatsminer M10 on September 19 is an excellent example of the company's strategy.
According to experts, Bitewei's Whatsminer M10 chips can potentially change the entire market. Early reviews are in and many consider them as one of the most efficient chips on the market. The early buzz has caused an explosion of orders and 1,000 are already on pre-order. The mining chips only cost $1,600 but estimates already have Bitewei earning $1.6 million from this round of orders.
Bitewei opened its doors only in 2016 but has already proven its chops by presenting products that can beat the best that Bitmain currently has to offer. The M10 is supposed to be 30 percent more efficient in its electrical consumption compared to Bitmain's flagship mining chip which is the Antminer S9 Hydro.
Will Bitewei Overthrow Bitmain
The big question is whether Bitewei has the capability to steal away some of Bitmain's 85 percent market share when it comes to Bitcoin mining hardware. However, this dominance is not something that many crypto lovers like. Having a single entity control a large part of the mining world is against the decentralized approach that is the core of cryptocurrencies.
This is why many of these small miners and competitors are welcoming the Whatsminer M10 with open arms. It will be interesting to see if this is enough to break Bitmain's grip on the market.