Network by far, but one unintentional consequence of that rapid growth was increased centralization. There was accumulation of profits, in China, where mining is most profitable that resulted to several contenders (e.g. KNC) being kicked out of the industry.
We have tried to calculate the amount of money that the Chinese have invested in mining; we estimate it to be in the hundreds of millions of dollars. Even with free electricity we cannot see how they will ever get this money back.
- S9 Bitcoin miner – $1415 + Power Supply $115 + Shipping $100 costs
- ROI – $18 a day x 30 days= $540 X 12 months = $640
- Expense – Electricity $75/month cost 1300 watts