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The crypto world is becoming an integral part of the economy. From the lows of mere innovation, a decade ago, it is now a formidable force. The coin has become relevant, working as an alternative investment. It's still on the growth path and keeps attracting investors. 

Even though the coin is more important, its acquisition is lost on the traders. Most of the traders acquire it from exchanges or trade it as shares. The reals source of the coins, however, is mining. 

Earlier, mining Bitcoin was easy. Anyone could mine it from a CPU. The stakes rose soon after to powerful GPUs, followed shortly by more specialized mining hardware. Only the hardware can mine Bitcoins for profit. 

Of all the Bitcoin mining hardware producers, Bitmain is the leading. Started as the first of its line, it has kept its position as the market-dominant force. It has also gained ground over the years with cutting edge innovations and development. 

With the background to Bitcoin mining and Bitmain, here's what you know about Behemoth's dominance; 

Ways to Behemoth's Dominance

Dominance never comes as an accident. It requires the company to lay down a plan for success. Bitmain's dominance is based on;

• Innovation – Bitmain has kept its position as the leading innovative crypto company. It was the earliest bitcoin mining hardware producing company. It never stopped at the hardware, even with the imminent success. It has some of the top mining pools in the form of BTC.com and Antpool. Bitmain is already interested in machine learning by introducing the Sophon chip. It also provides cloud chips for its online customers. 

• Investments – Other than innovation, Bitmain is also looking to expand investments. It has continually invested and partnered with strategic clients for sustained growth. Some of the earlier assets included acquiring controlling stakes in Opera. It also invested in companies like Block. one, Circle, and NULS.The success of Bitmain mining hardware is due to the partnership with other entities.  The latest of such alliances is when Core Scientific purchased more than 17,595 of its new generation mining hardware. The investments helped in gaining more market foothold. 

• Expansion - Bitmain is an ever-expanding venture. After the successful launch in China, it has continued to be a world leader. The mining hardware production company has several data centres across the world. One such centre is allocated at Rockdale, Texas. The more than $500m investment has pushed its entry into the North American market. It has an extensive expansion plan that looks to create more than 400 jobs while also boosting the economy. 

Challenges towards the Domination

Like any field, dominating the crypto world never comes easy. Bitmain has several challenges it has to contend with. One of the most serious ones involves government regulation. There have been reports that China is planning to shut it down. 

The report by China Morning Post indicates it is one of the companies the country plans to shut down. There have been rising cases of the environmental impact of crypto. With access to affordable hydropower, China is the headquarters of crypto mining. It is, however, considering shutting down such companies. 

The exact position of the Chinese government, however, is not yet precise. There are indications that it might be looking for an alternative power source. It is not willing to let go of the position of the world's leader in cryptocurrency.

The other challenge Bitmain contends with involves the corridors of justice. The company has had several lawsuits over the years. The suits bring along with them poor publicity.

One of the first high profile cases was in 2017 against Yang Zuoxing. The company accused its former designer of infringement by creating a rival company. Bitmain lost the case. 

The other case in 2019 was also against a former employee who branched to form a rival company. The rival service PoolIn has already gained a lot of market traction. 

The company still has several on-going lawsuits. It is yet to be clear whether these lawsuits can undermine its position in the long run. 

Who is the Competition for Behemoth's Dominance? 

The only way to become a dominant force is by operating as a monopoly or gaining an edge above competition. Bitmain started as a monopoly. It was controlling almost 80% of the crypto mining hardware market. 

The company has, however, come against stiff competition in recent years. One of its main rivals is the MicroBT. Formed by one of its former designers, the competitor undermines its growth prospects. 
Bitmain has also not made it easy for itself. The company got it all wrong when it openly supported the Bitcoins folk,

Bitcoin Cash. This was at a time when the Bitcoin community disagreed on expansion prospects. Supporting a single side withdrew Bitcoin's community from its stronghold. 

Bitmain's dominance on the mining pools has also come under threat. Its top mining pools, Antpool and BTC.com, have already ceded ground as the top pools. PoolIn and F2Pool have taken up the top spots. 

Bitmain, at the moment, still controls around 35% of the mining hardware market. While these are huge figures by market standards, it still faces the competition.

Final Thoughts 

Keeping a market dominance in a growing market is a tedious task. The more the market opens up, the more competitors come. Bitmain has, for now, handled it well.

Even though its dominance has been declining, the coin still controls the most significant market share. It has fended competition from formidable competitors like MicroBT.

Still, the company is likely to make it better in the 2020 financial year. The 2016 Bitcoin halving led to some of the most renowned Bitmain developments ever. It made billions of profits while also fundraising more than ever. It nurtured the idea to go public in the same period. 

If the 2020 Bitcoin halving is anything compared to 2016, then Behemoth's dominance is on the cards. The earlier indications are positive. 

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