Fourth Edition of CryptoSuper500 List Shows Effects of Bitcoin Halving
China has largest portion of the top 50 cryptocurrency supercomputer-class mining pools
Cryptocurrencies and their associated Blockchain decentralized ledger technologies have grown in importance as a new asset class. The crypto economy has become an important driver of technology development and investment decisions globally.
"As expected, Bitcoin's halving impacted the aggregate annual economic value of crypto production, reducing it by approximately 30% to a bit less than $5 billion," said Dr. Stephen Perrenod, OrionX Partner and Analyst and the developer of the CryptoSuper500. "Bitcoin prices, the cost of electricity, and transaction fees will play critical roles in a recovery scenario."
Reports show that there are now over 5,500 cryptocurrencies. Most are worth relatively little, and only 17 have market caps over $1 billion. The two most robust consensus algorithm classes from the security and value perspective are Proof-of-Work (PoW) followed by Proof-of-Stake. But only PoW algorithms are computationally intensive processes that lead to supercomputing levels of resources being assigned.
The annual economic value (AEV) of the top 5 pools in the current list compared to the last list (published in November 2019) are as follows:
The full list with additional explanation is available in at OrionX.net/research and OrionX.net/blog.
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* Note: This effort is an analysis of the technologies and trends surrounding blockchain and cryptocurrencies. It is not, and must not be considered as, financial, investment, or legal advice.