According to Brandessence Market Research, The Cryptocurrency Mining Market size reached USD 2285.4 Million in 2021. The Cryptocurrency Mining Market is growing at robust CAGR of 28.5%, and reach size of USD 5293.9 Million by end of Forecast 2028.
Massive demand for cryptocurrency is one of the leading factors driving the growth of the cryptocurrency mining market across the globe. The courtesy towards cryptocurrency has proliferated not only among investors but also in popular culture. Several types of cryptocurrencies such as bitcoin, bitcoin cash, Ethereum, ripple, litecoin, dashcoin, and many more are increasingly using throughout the world.
Scope of The Cryptocurrency Mining Market Report:
The global cryptocurrency mining market is going to see a good growth in the coming years as there is an increase in the demand for cryptocurrency mining in the recent past and an increase has been seen in the number of companies which invest in this market making it a lucrative industry for all the cryptocurrency miners. Particularly in the developing countries, the global market has been growing exponentially. The India cryptocurrency mining market has specifically been seeing great growth prospects.
Before deep diving into the cryptocurrency mining market research forecast, the understanding of cryptocurrency mining becomes imperative. The process of cryptocurrency mining can be defined as the various transactions which are calculated and confirmed from various forms of cryptocurrencies to blockchain. There is a digital ledger which is used for documenting transactions which take place over a lot of computers simultaneously in the blockchain. This displays an encryption system which is extremely complex. Cryptocurrency mining has become an inseparable part of the cryptocurrency ecosystem. And hence, the ecosystem also needs a cryptocurrency mining hardware.
In addition to all this, the miners are the ones who hold the blockchain secured and in a trustworthy way. They handle the coins with an extremely strong hashing that has the backing of multiple computers all over the world. The biggest achievement for cryptocurrency mining has been the fact that it has improved from being; something that was done independently from houses to something that has been done at a larger scale. It is now drawing investment from different corporate giants. This is the digital empowerment which has made it one of the strongest growing forces in the global market. The opportunities are only going to grow further as the smaller firms are closing and bigger mining firms are replacing them.
Cryptocurrency Mining Companies
Ironmountain, iMining Blockchain and Cryptocurrency Inc, ViaBTC Technology Limited, Slush Pool, F2Pool, Hut 8 Mining Corp, MiningStore, HashFlare LP, LIVIKA LP, Genesis Mining, Eobot Inc., BitMain Technologies Holding Company, Riot Blockchain, Inc., MinerGate, StartMiner, Stax Digital, SocialChain Inc., Halong Mining, BitMain Technologies Holding, Canaan Creative, ASICMiner, Baikal Miner, Advanced Micro Devices, Bitfury Group and Innosilicon are some of the major companies that are involved in the global cryptocurrency mining market. They are often trying to indulge in innovation to keep the market growing and making sure that they propel the growth of the cryptocurrency mining market size exponentially.
For validating these transactions, the miners are contributing to networks as the blockchains are going to turn into being extra centralized. Further, they have been getting a lot of diverse technologies on board as they increase the hash rate and make sure that the power consumption is decreased. This is done in order to reduce the consumption of power and make the mining process a lot more efficient. These factors have been expected to propel the global market as the mining process becomes a lot cheaper and easier.
The major barrier which the global cryptocurrency mining market has experienced resulting in the slow growth of the is the fact that the operational costs are higher and with a lot of new startups entering the fray, the global market may also saturate early. The profit margins are going to be lower. Another major factor which may hinder the global market growth could be the operational difficulties and the constant advancements which are taking place so a lot of continuous investment needs to be put in research and development to keep up with the market.
Global Cryptocurrency Mining Market Segmentation:
The segmentation of the global cryptocurrency mining market can be done on the basis of sales volume, application, market share and region. On the basis of revenue or market share, the market can be segmented into the Application-Specific Integrated Circuit (ASIC) Miner, Graphic Processing unit Miner and FPGA mining. In comparison to the ASIC miners, the FPGA mining is a cheaper and a lot more profitable option. The reason for that being the bigger hash rate offered by the FPGA mining and the reduction of costs of mining. On the basis of end users, the global cryptocurrency mining market can be divided into multiple segments such as the remote hosting services, the self-mining and the cloud mining. Cloud mining is the segment which is growing rapidly with the different technologies coming through. Self-mining picked up but with bigger investment coming in, it is going through modest growth.
Market Trends of Cryptocurrency Mining Market
As far as the cryptocurrency mining market trends are concerned in regional terms, the global market can be classified into Europe, Asia Pacific or APAC and the Rest of the World. The biggest market in the world right now is the Asia Pacific market. The obvious reason for the growth in the Asia Pacific region is the population factor. Countries like India and China are the prominent markets for cryptocurrency mining and have the biggest presence out there. There is a major factor which effects the trends and that is the lower cost of electricity which is boosting the presence of all the bigger mining companies in the region. China is the hub of cryptocurrency mining and most of the companies currently have been investing in the country.
In recent news, the Global Blockchain Mining Corp., which is a subsidiary of Global Blockchain Technologies Corporation, had obtained an approval to complete the purchases which were previously announced. These purchases included the buying of 6,666 Antminer S9s from a privately held company in China called Bitmain Technologies. The company is a multinational semiconductor company which operates from Beijing. This is huge as lot of possibilities have now opened up in the cryptocurrency mining arena for those who are planning investments in this area. The company however will not be getting into mining cryptocurrencies directly and are doing it more for investment purposes as per them.
With the world opening up to different possibilities in the cryptocurrency ecosystem, the global cryptocurrency mining market is surely going to grow but the challenges do remain. The biggest challenge is the fact that bigger investments are swaying away the independent miners who were supposed to be the backbone of the market in its earlier years. This, however, also offers opportunity for miners to earn in a more organized manner and reduce the costs by getting bigger hash rates.