A new report on the crypto mining industry indicates that the market could grow by $2.8 billion between now and 2024.
The cryptocurrency mining hardware market has been forecasted to grow by $2.8 billion, according to a report issued by Technavio. That represents a CAGR of over 7% from 2020–2024.
The report also stated that mining is likely to increase as a result of a growing number of mining pools, product launches, and crypto-dedicated hardware. It notes that 2020 saw a broad increase in mining metrics.
Consequently, Technavio believes that there are opportunities in the mining hardware market for countries like the U.S. and Canada. The ability to use crypto for payment of property taxes is one such reason why mining could expand.
There has been some concern regarding the energy consumption of the mining process, but the industry is constantly coming up with more efficient solutions. There is a push for clean energy-based mining, but this is yet to take off in any substantial way. One of the most notable developments is Argo’s clean energy mining pool.
Besides that, Square and ARK Invest said that they would invest to help BTC mining boost renewable energy development. The two entities conducted a study on the subject, saying that it could potentially increase efficiency, lower prices, and encourage the transition to sustainable sources.
As it stands, crypto mining isn’t likely to slow down any time soon despite some governments clamping down on the mining process. Given the new developments of renewable energy and some favorable regulation, the predicted growth is very likely.
Crypto mining efforts still going strong
Regulation, clampdowns, and a switch to different consensus mechanisms aren’t troubling the mining industry just yet. While many projects are switching to Proof-of-Stake or similar protocols, a hefty majority of individuals still work with Proof-of-Work protocols.
At some point, other protocols could take over, but as it stands, Bitcoin mining reigns supreme. In the short term, however, government regulations could have a greater impact on mining.
Iran legalized mining in 2019, and Iranian President Hassan Rouhani has ordered a cryptocurrency mining strategy. Meanwhile, China, the home to most crypto mining, issued new guidance for the mining market. It has taken a far more lax stance on it, having previously considered it an industry that needs to be eliminated.
Cryptocurrency mining continues to be a major part of the market, with Bitmain being one of the biggest names. The company is considering going public, though there has been little news on that front lately.
In any case, mining is likely going to be around for a while, and the forecast is not surprising. As crypto goes into the mainstream, this surge is likely to be stoked even further.