Bitewei Whatsminer M10 To Rival Bitmain As Competition In Mining Hardware Heats Up

Bitewei, a relatively new crypto mining hardware manufacturer founded and run by former Bitmain employees, looks to increase competition and drive innovation in the highly concentrated mining market.

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Bitewei, a relatively new crypto mining hardware manufacturer founded and run by former Bitmain employees, looks to increase competition and drive innovation in the highly concentrated mining market.

The past few years we have watched Bitmain dominate the crypto mining industry, controlling a large stake in both mining and manufacturing of the mining hardware.

It seemed as if nothing would dislodge Bitmain from their spot at the top. However, recent developments have caused Bitmain’s future to come into question.

Much of what happened concerning the company has been kept out of the public eye. However, for the majority of the crypto community, Bitmain’s “troubles” can be traced at least back to reports that it would be launching an initial public offering (IPO), incidentally scheduled for this September.

Various aspects of its struggles have come out in crypto-centric media platforms, including the recent information that several of its would-be institutional investors had denied backing the ICO.

Before that cloud clears, Bitmain is also inching towards a tight corner again: it has a new rival and one that may push it all the way.

Enter Bitewei

Bitewei is a crypto mining chip manufacturer based in the Chinese city of Shenzhen. The company is headed by Yang Zuoxing, who worked for Bitmain as director of design.

Bitwei has reportedly raised approximately $20 million. Yang and his team plan to use in rolling out their mining chips and in the process, change the mining landscape.

According to many observers, Bitwei’s success in launching its own mining chips could cut into Bitmain’s business. Bixin COO Tyler Xiong agrees with that sentiment, saying that Bitwei’s “Whatsminer” chips would be the real ‘game changer’.

Bitmain may still control the largest chunk of the hardware market, but that most probably going to change. As it stands, many within the crypto mining space consider Bitwei to be the best there is in the industry for now.

The company first launched its services in Shenzhen about two years ago and has so far proved that it can rival the more established Bitmain.

Its top product, the Whatsminer M10, reportedly has an electricity consumption efficiency level that is 30 percent higher than that of Bitmain’s flagship miner, Antminer S9 Hydro.

The competition is likely to come fast and thick if information coming from Bitwei is anything to go by. According to Yang, the company has already started disrupting the market with over 1000 pre-orders for the Whatsminer M10 unit.

The M10 is going to hit the market on September 19, and to show just how demand may skyrocket, the company began pre-selling it in early August. The unit will cost an investor about $1,600, but the exact price will depend on the shipping batch.

It’s a big boost for Bitwei, with their M10 already projected to generate over $1.6 million on its debut.

Can Bitwei compete with Bitmain?

If nothing else changes and Bitmain proceeds to successfully complete its IPO, then it sure is going to be a tough game for Bitwei. Both Bitwei and many investors have been calling for more competition in the marketplace.

Going by documents filed in preparation for the IPO, Bitmain controls a mighty 85% of the entire mining hardware market.

There is even more in favor of the mining giant, as it controls over 30% of the miners who use tools and software provided by its top Bitcoin mining pools at BTC.com and Antpool.

But this dominance doesn’t sit well with many crypto enthusiasts and developers. In its simplest form, it goes against crypto principles of open access to mineable digital assets as well as the chance to reap the rewards that come with them.

It is, therefore, no surprise that the market has responded so positively to Bitwei’s Whatsminer, believing it represents a chance to introduce real competition in the ASIC miner industry. The industry excitement burns in the face of the difficult road ahead of Bitwei.

Some, like the CEO of Obelisk David Vorick, believe it’s a good start to have Bitwei challenging Bitmain. Others argue that Whatsminer needs to guarantee efficiency first, and prove itself in the market before the company can look to challenge.

“It’s hard for a new hardware company to get that influence now. Besides, there are only 4 million bitcoins left to mine.”

That is Tyler Xiong, Bixin COO’s opinion concerning comparisons between the two China-based mining companies.

Bitwei has an edge

It would be wrong to downplay how far Bitwei has come and what it has achieved so far with its M10 product.

What’s important for the start-up isn’t just its edge over Bitmain’s S9 Hydro but also how far ahead of any other startup they progressed in such a short window of time.

For instance, Whatsminer M10’s electricity consumption falls between 66 and 68 watts for every 1 trillion hashes (i.e. 66-68 W/TH). Comparatively, the S9 Hydro consumes power at a rate of 96 W/TH.

Again, Yang’s team is giving it a big boost in efforts to produce the best in hardware for the market. The experienced team boasts a majority of employees who formerly worked for Bitmain, including Yang who perhaps knows about mining chips just as well as anybody else at Bitmain, if not better than them all.

It is an advantage that sees the team unfazed by the enormity of taking on an industry giant.

No one has illustrated that better than Yang himself, who said they are not going to buckle under the weight of the challenge.

“Nothing can stop the enthusiasm for people inside the industry. Outsiders may hesitate, like Intel or NVIDIA, but not us.”

The rivalry could go even further, given that Yang and Bitmain have had legal battles before. Bitmain filed a lawsuit against Yang for patent infringement. China’s State Intellectual Property Office (SIPO) invalidated Bitwei’s patent; citing technological solution comprised public knowledge.

The invalidation of the patent relating to Whatsminer only served to illustrate how deep the rivalry has grown.

Importantly for the market’s benefit could perhaps be Yang and Bitwei’s desire to make the best chips. That, according to Yang, will not be limited to crypto mining chips alone.

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