With cryptocurrency steadily rising and marking itself as a preeminent asset in the digital arena, the state of crypto mining alongside it is flourishing.
According to Recent research, the global cryptocurrency mining machine market is poised to grow by $ 2.8 billion for the 2020-2024 periods, with a CAGR of 7% over the forecast period.
With such a huge leap in such a short span of time, crypto mining is securing its position as a critical part of the industry’s success.
Let’s take a look at the current state of crypto mining.
What is Crypto Mining?
First, let’s take a look at how the process works. Crypto mining is a process where miners earn cryptocurrency without having to undergo a P2P transaction. It’s about competing with other miners to solve complex math problems that are then used to verify transactions in the blockchain. The winning miner gets to authorize the transaction and earn crypto. After that, the verified transaction is added to the blockchain ledger, boosting activity within the industry.
Miners essentially work as auditors and play a key role in avoiding a “double spend” problem where a user makes a copy of the digital token.
Needless to say, crypto mining is more important than ever as the industry continues to grow and people look for cryptocurrencies such as Bitcoin with independent reserveIn 2009 Satoshi Nakamoto mined the first few bitcoins with a simple computer. But as more people join the webbed crypto network, the algorithms are getting harder to crack. And that stimulates the computing power of the technology to keep up to speed.
The Global Landscape of Crypto Mining
China continues to dominate cryptocurrency mining. According to Cambridge University Bitcoin mining card, China uses the most average monthly breakdown of hashish rates by country, at 65%. The United States and Russia are lagging behind in 2nd and 3rd place respectively. China’s dominance is attributed to a cheap labor force, abundant access to hardware and low electricity costs.
But the continued growth of the crypto industry will eventually diminish China’s lead and introduce new entrants to the market. Third World countries are finding an increasing need for cryptocurrency to overthrow slow banking processes. Western countries are becoming aware of Bitcoin’s tenacity to be a part of the center of attention much more quickly.
Regulations of cryptocurrency
Regulations for digital mining have always been fickle. Being strategically positioned in leading digital mining jurisdictions gives the miner access to renewable energy – which is paramount to anyone who takes the industry seriously.
Here are the statuses of some regions that regulate digital cryptocurrency mining:
- ChinaWith a regulatory clamp on digital mining due to illegal miners participating in Bitcoin theft, as well as shoddy infrastructure prone to flooding, more and more mining companies are turning to other countries with better geopolitical conditions.
- Eastern EuropeWhile not exactly a technology hub, Eastern Europe gives miners access to many reusable industrial sites with a solid electricity infrastructure. The Ukrainian government also allows Bitcoin mining without government oversight and intervention – which is a step in the right direction for crypto miners everywhere.
- North AmericaPredictable and inexpensive renewable energy is driving NA to the forefront of development in the digital currency space. In the US, the Office of the Comptroller of the Currency also strengthened digital currencies as valid financial instruments, pushing them into mainstream financial markets.
The Future of Crypto Mining
Clearly, digital currency is here to stay and the future of crypto mining is bright.
As long as a country continues to promote regulatory stability and receptivity to digital assets, global economies can enjoy economic growth by attracting optimistic investors looking for an alternative asset, thereby improving the state of the financial markets altogether.