Global Cryptocurrency Mining Market - Insights
Cryptocurrency mining requires network of several computers for verification of the transaction record, known as the blockchain. The miners in this computationally intensive process are offered a share of transaction fees and gain a higher probability of finding a new block through contributing high computational power. These support transactions facilitate enhanced security to network users and ensures integrity, which in turn influences growth of the global cryptocurrency mining market.
Emergence of digital currencies such as Bitcoin, Ethereum, and Bitcoin Cash has led to huge investments by companies and this is expected to aid in substantial growth of the market in the near future.
The total market capital for 1,325 different digital assets was valued at over US$ 350 billion in 2017. The increase in cryptocurrency mining is attributed to rising adoption of cryptocurrency and total market capital in these digital assets to gain long term profits. Increasing complications in finding new blocks of most popular cryptocurrencies that includes the Bitcoin has led to increased requirement for advanced hashing power, increase in power consumption, and requirement of specific weather conditions to maintain its operability over long durations. These factors in turn have led to significant investments in mining to gain high ROI (within 20 months) and additional income over the life cycle of the systems. Moreover, offerings that include remote hosting and cloud services have enhanced the user access to low cost solutions and favorable environment for these operations. These factors are expected to aid in substantial growth of the cryptocurrency mining market over the forecast period.
Figure 1. Global Cryptocurrency Mining Market, 2016, by Region.
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See Also
Cryptocurrency Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2023-2028Cryptocurrency Market Size, Share & Industry Analysis [Latest], 2030November 2023 Crypto Market ForecastCryptocurrency Prediction, Bitcoin & Altcoin and ICO Price Forecast with Prognosis Chart 2023, 2024, 2025, 2026, 2027, 2028Source: Coherent Market Insights (2017)
Bitcoin Cash and Bitcoin are both limited to 21 million units as the maximum number over its lifetime for use. Limited supply of such assets in addition to increasing complications in finding new blocks is expected to impact the revenue of miners in the near future. Miners are emphasizing on increasing transaction fees for the asset exchange. This is anticipated to be among the major factors that may impact the users’ motivation in the utilization of Alt coins. Therefore, this is expected to be a factor hampering growth of the cryptocurrency mining market over the forecast period. According to Blockchain Luxembourg S.A., on December 12, 2017, the proportion of transaction fees as a percentage of total bitcoin mining was reported to be 9.12%. Moreover, according to Global Cryptocurrency Benchmarking Study - 2017 by Cambridge Centre for Alternative Finance, it was projected that the transaction fees is expected to reach 10% by the start of 2018, owing to decreasing block rewards.
According to Coherent Market Insights analysis, in 2016, China and the U.S. accounted for over 70% of the global cryptocurrency mining market, based on the total number of pools across the world. However, location of the pool operators does not determine mining capabilities of these regional pools. Low temperature, low electricity cost, and continuous internet access are basic requirements for high operability for these facilities. Robust electricity generation infrastructure in Russia and increasing inclination of major regional players such as RadiusGroup in deployment of cryptocurrency mining facility is expected to position the country as a key player in the market over the forecast period.
Key pool operators in the global cryptocurrency mining market include AntPool, BTC.com, ViaBTC, BTC Top, SlushPool, and F2Pool among others. These aforementioned companies accounted for over 75% of the industry as of December 2017. Chief players offering remote mining service contracts include Hashflare, Genesis Mining, Hashing 24, Ebot, ViaBTC, and others.
Frequently Asked Questions
The global cryptocurrency mining market is estimated to surpass US$ 38.38 Billion by 2025.
Major players operating in the global cryptocurrency mining market include AntPool, BTC.com, ViaBTC, BTC Top, SlushPool, and F2Pool among others. These aforementioned companies accounted for over 75% of the industry as of December 2017. Chief players offering remote mining service contracts include Hashflare, Genesis Mining, Hashing 24, Ebot, ViaBTC, and others.
Among mining enterprises, large enterprises segment held dominant position in the market in 2016.
Emergence of digital currencies such as Bitcoin, Ethereum, and Bitcoin Cash has led to huge investments by companies and this is one of the major factors that is expected to propel growth of the market over the forecast period.
The global cryptocurrency mining market is estimated to exhibit a CAGR of 29.7% over the forecast period.
Among regions, Asia Pacific especially China accounted for the largest market share in the global cryptocurrency mining market in 2016.
FAQs
Cryptocurrency Mining Market Insights
How big is the crypto mining market? ›
Cryptocurrency Mining market was valued at US$ 14010 million in 2023 and is anticipated to reach US$ 17040 million by 2032, witnessing a CAGR of 2.8% during.
How big is the crypto market compared to the stock market? ›
As of 2021, the amount of stocks outstanding globally was estimated to be $106 trillion, while the total size of crypto markets was only $2.6 trillion, a mere 2.5% of the much larger equity, or stock market.
What is the market size of cryptocurrency? ›
The global cryptocurrency market cap today is $2.52 Trillion, a 5.78% change in the last 24 hours and 114.1% change one year ago. As of today, the market cap of Bitcoin (BTC) is at $1.31 Trillion, representing a Bitcoin dominance of 51.96%.
How much profit in crypto mining? ›
If you successfully mine a block reward, you will receive 6.25 BTC. In 2024, this will be reduced to 3.125 BTC. Second, you will also receive transaction fees when mining a Bitcoin block. This is a variable revenue source, as transaction fees change depending on network demand.
What is the size of the mining market? ›
What is the size of mining market? The Global Mining Market is a behemoth, estimated to be worth USD 2,138.73 billion in 2023, and projected to reach USD 2,276.8 billion in 2024. This represents a remarkable 6.5% CAGR (Compound Annual Growth Rate), highlighting the industry's significant size and continued expansion.
Who is the largest miner of cryptocurrency? ›
Largest Bitcoin miners by market capitalization
| # | Name | Price |
|---|
| 1 | Marathon Digital Holdings 1MARA | $21.39 4.17% |
| 2 | CleanSpark 2CLSK | $18.17 0.76% |
| 3 | Phoenix Group 3PHX.AE | $0.53 3.96% |
| 4 | Riot Blockchain 4RIOT | $10.59 3.38% |
18 more rowsA broadly diversified stock portfolio generally presents a safer option than cryptocurrencies because of their intrinsic value and history of delivering solid long-term returns. Cryptocurrencies may hold greater potential for outsized gains, but come with significant risk.
How much is the entire cryptocurrency market worth? ›
Cryptocurrency Prices Today By Market Cap
The global cryptocurrency market cap today is $2.37 Trillion, a -1.82% change in the last 24 hours.
How closely does crypto follow the stock market? ›
At times, crypto markets may move alongside stock markets. For example, retail traders may flood the markets looking to buy up both stocks and cryptocurrencies. At other times, crypto markets and stock markets may be negatively correlated (and crypto may be viewed as a hedge to stocks).
Top 10 Cryptos in 2024
| Coin | Market Capitalization | Current Price |
|---|
| Ethereum (ETH) | $359 billion | $2995 |
| Binance Coin (BNB) | $85 billion | $580 |
| Solana (SOL) | $72 billion | $162 |
| Ripple (XRP) | $28 billion | $0.51 |
6 more rowsBetween 2015 and 2023, the price of Bitcoin has increased by over 173,000%. Bitcoin reached an annual growth rate of 60% in 2021 and the cryptocurrency market is predicted to grow with a compound annual growth rate of 56.4% from 2019 to 2025.
Who owns the most Bitcoin? ›
Satoshi Nakamoto, the pseudonymous creator of Bitcoin, is believed to own the most bitcoins, with estimates suggesting over 1 million BTC mined in the early days of the network.
Is crypto mining actually profitable? ›
Does Bitcoin Mining Actually Pay? Bitcoin mining can be profitable if you contribute enough hashing power to a mining pool to receive larger rewards. If you're solo mining at home on your computer, you may never receive rewards.
How much does a crypto mining machine make per day? ›
Bitcoin's hashprice — a metric miners use to measure the value of their compute power, hashrate — rose to $79/PH/day today, an 11% increase week-over-week from $71/PH/day. This means that miners with 1 petahash (PH) of mining equipment can now expect to earn $79 per day in revenue from these machines.
What is the most profitable form of crypto mining? ›
Bitcoin (BTC)
Bitcoin is the largest crypto by market capitalization and the most popular cryptocurrency to mine, with a reward of 6.25 BTC per block - although this halved in April 2024. Due to competition, you'll need a top-of-the-line mining rig to mine Bitcoin successfully, as well as to join a mining pool.
How much is the crypto mining industry worth? ›
The crypto mining market is worth $2 billion today and would be worth $7 billion in 2030. As the mining industry strengthens, the sale of machines used to mine the queen of cryptocurrencies is increasing.
How big is the crypto mining market in 2024? ›
The cryptocurrency mining equipment market size has grown strongly in recent years. It will grow from $4.73 billion in 2023 to $5.01 billion in 2024 at a compound annual growth rate (CAGR) of 6.0%.
Is there still money in cryptocurrency mining? ›
Bitcoin mining, once accessible to individual investors, is now so competitive that it's rarely a profitable venture for those with small setups. However, it's still possible to make money with Bitcoin. You can trade it, lend it, hold it or earn it.
