Cryptocurrency mining is a validation of transactions. For this effort, successful miners obtain new cryptocurrency as a reward. The reward decreases transaction fees by creating a complementary incentive to contribute to the processing power of the network. The rate of generating hashes, which validate any transaction, has been increased by the use of specialized machines such as FPGAs and ASICs running complex hashing algorithms like SHA-256 and scrypt. This arms race for cheaper-yet-efficient machines has existed since the day the first cryptocurrency, bitcoin, was introduced in 2009. With more people venturing into the world of virtual currency, generating hashes for this validation has become far more complex over the years, with miners having to invest large sums of money on employing multiple high performance ASICs. Thus the value of the currency obtained for finding a hash often does not justify the amount of money spent on setting up the machines, the cooling facilities to overcome the heat they produce, and the electricity required to run them. Favorite regions for mining include those with cheap electricity, a cold climate, and jurisdictions with clear and conducive regulations. As of July 2019, bitcoin’s electricity consumption is estimated to about 7 gigawatts, 0.2% of the global total, or equivalent to that of Switzerland.
Some miners pool resources, sharing their processing power over a network to split the reward equally, according to the amount of work they contributed to the probability of finding a block. A “share” is awarded to members of the mining pool who present a valid partial proof-of-work.
Generally speaking, mining operators with greater hashing power relative to other miners attempting to solve a block have a higher chance of solving the block and receiving a cryptocurrency award. Mining is a system that verifies transactions and provides security to the Bitcoin blockchain; it is how new bitcoins enter the market.
According to the new market research report “Cryptocurrency Mining – Global Market Insights and Sales Trends 2024”, published by QYResearch, the global Cryptocurrency Mining market size is projected to reach USD 20.63 billion by 2029, at a CAGR of 12.7% during the forecast period.
- Global Cryptocurrency Mining MarketSize(US$ Mn), 2018-2029
Source: QYResearch, “Cryptocurrency Mining – Global Market Insights and Sales Trends 2024”
- Global Cryptocurrency MiningTop11 Players Ranking and Market Share（Based on data of 2021, Continually updated）
Source: QYResearch, “Cryptocurrency Mining – Global Market Insights and Sales Trends 2024”
The global key manufacturers of Cryptocurrency Mining include Ault Global Holdings, MGT Capital Investments, Core Scientific, Marathon Digital Holdings, GMO Internet, Hut 8 Mining, Bitfarms, Bit Digital, Core Scientific, MGT Capital Investments, etc. In 2021, the global top five players had a share approximately 3.0% in terms of revenue.
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