Bernstein: The US Bitcoin mining business may welcome new opportunities due to halving and Trump's new policy

According to a news report by BlockBeats on July 30, Bernstein analysts from the research and brokerage firm stated that the potential market total for the mining chip and hardware industry will reach $20 billion in the next five years.

Analysts said that Bitcoin mining hardware market has always been dominated by companies like Bitmain, with a market share of over 80%. However, new mining chips launched in the United States by Block and Auradine have provided opportunities for supply chain diversification, competition in advanced chip design, and access to global foundry capacity.

The analyst predicts that with an increase in network hash rate as well as replacement/upgrades of existing capacity, demand for mining equipment will grow annually at 15-30%. As profits from bitcoin mining are halved after halving events, it is expected that business opportunities related to hardware revenue will be around $3-5 billion per year. In addition to this, Donald Trump's recent push as Republican presidential candidate for "Bitcoin made in America", promising to turn America into a "Bitcoin Mining Superpower" while providing more power generation capabilities for this industry. Analysts believe this is a favorable wind for American Bitcoin miners which could potentially improve machine efficiency and reduce capital expenditure (by lowering chip prices).