Although crypto-mining involves decentralized principles and the consumption of non-renewable energy, it becomes more central and environmentally friendly over time. Research by CoinShares shows that around 70% of mining is already powered by renewable energy sources.
We have a clear idea of the crypto-mining past: it was a lucrative hobby for nerd students in dormitories (like me!), Which became a highly competitive industry worth billions of dollars. This industry has evolved from a mining company into a more powerful large-scale enterprise. These are the players who have set each operating component for maximum efficiency and performance.
Crypto mining is a big industry, so it’s harder than ever to play a significant role. Crypto Mining data centers optimize the performance of each mining installation for maximum results. You do not even have to work close to civilization, but you can set up a business anywhere that offers you cheap electricity and reliable internet access. Businesspeople working on a large scale can more easily implement such pragmatic decisions.
Therefore, those who want to play a significant role in mining will come to mass cloud services. With these companies, you can identify your own cryptocurrency using highly specialized and highly loaded mining hardware. The miner at home is nowadays hardly a ping on the minenradar. Those who use cloud mining services provide the meaningful foundation for everything else.
We can make a clear comparison between Crypto Mining and Gold Mining. At the beginning of the gold rush, one could easily find gold by waving in a river. As time went on and when people had to keep panning, the processes of successfully finding more gold required a new level of sophistication – digging with picks or other powerful tools into the ground. This reflects the shift from crypto mining to running a client on your laptop (which used to be effective) to cloud mining, the charged “drill” that is needed today to make an impact.
At the same time, there are a number of exciting ideas for providing greener blockchain technology. Because of the fundamental economic incentive for the mine, companies are motivated to achieve new efficiency and reduce costs wherever they can. This means that large-scale mining activities are being transferred to renewable energy, greener algorithms are being determined for the machines being operated, and mining activities are generally concentrated on a few large companies.
It’s an exciting time to be in the crypto-mining room. I spend a lot of time thinking about the future of this industry. Here are my three big forecasts for crypto-mining.
Bitcoin is the cryptocurrency that started a thousand cryptocurrencies. It is an established value as a secure, open source digital currency that is transferable between two parties in the world, whose functioning requires no intermediaries and whose dynamics is more than ten years. It is a compelling technology for anyone who is excluded from the regular financial world.
Bitcoin seems to be getting stronger year by year – it has a long history of crises being successfully mastered, and there is no reason to believe that this trend should change.
The so-called “blockchain industry” refers to companies and individuals using crypto-currency technology to solve problems in areas beyond crypto-currency. It was launched shortly after the launch of Bitcoin by Satoshi Nakamoto in January 2009. The blockchain industry has spawned so many intriguing media that regular banker JP Morgan has stepped up its own blockchain initiative.
Need more evidence that blockchain technology is really useful? West Virginia organized part of the state elections last year with a blockchain-driven voting app. The hooks are already there and everything indicates that Blockchain will bring us deeper.