Christian Ludwig (@christi61026749) reported that the initial increase in Kaspa’s hashrate from December to March was largely attributed to individual investors. A significant number of Kaspa supporters participated, either by purchasing KS0s (single-board computers) or by hosting KS3s and KS5s (ASIC miners). This surge of interest from individual investors was further supported by the early involvement of industrial mining operations such as c#rate, which introduced hundreds of ASIC miners into the system.
The subsequent rapid rise in hashrate is a clear indication of the entry of major industrial miners into the Kaspa network. Ludwig points out that leading U.S. public Bitcoin mining firms are making substantial investments in Kaspa, with the biggest among them possibly acquiring thousands of KS5 ASIC miners.
This speculation is supported by rumors of large KS5 orders and the temporary halt in KS5 production by Bitmain until August, likely due to fulfilling these orders.
Ludwig believes that these public mining companies are not holding onto their mined Kaspa. Instead, they are exchanging it for Bitcoin to enhance their Bitcoin hashprice (the income generated per unit of hashrate) without openly revealing this tactic.
This strategy allows them to benefit from Kaspa’s high mining profitability (a KS5 is reported to earn $75 per day in contrast to $4 per day for a Bitcoin S21 miner) while presenting investors with an improved Bitcoin hashprice.
Interestingly, Ludwig sees this trend as beneficial for Kaspa. As these large entities overlook Kaspa’s importance as a significant advancement in distributed computing technology, they are unintentionally distributing a large portion of the newly minted Kaspa supply to numerous buyers.
Moreover, the growth in hashrate is expected to drive up Kaspa’s market price, as there is a direct correlation between hashpower and price. Even a 2.5x increase in price would make mining Kaspa as profitable as it was in February.
Ludwig commends Kaspa’s emission schedule, which is designed to prevent large-scale ASIC mining operations from taking control of a significant share of the supply. Less than 75% of emissions took place in the first two years, allocated to CPU and GPU miners, promoting decentralization. The remaining 25% will be released over the next 13 years through ASIC mining, making it more challenging to compromise the network over time.
Despite these measures, Kaspa remains the most lucrative coin for ASIC mining due to its value and potential for price appreciation. Kaspa is already scarce, possesses one of the most decentralized wallet distributions in cryptocurrency, and ranks as the second most costly Proof-of-Work network to attack.”
Source: captainaltcoin.com