Indeed, COVID-19 has turned the world 360 degrees and has resulted in unprecedented and unforeseen circumstances. Like major challenges, the global health crisis paved the way for industry resilience. At the start of the modern pandemic, the world of cryptocurrency pondered about the significant boom of Bitcoin mining, and how it can continue the momentum despite the pandemic. However, uncertainties and fears eased a bit when bigger companies or organizations registered on Nasdaq were interested in Bitcoin mining for additional investments.
In 2020, a sharp increase in Bitcoin mining is directly associated with the remarkable growth of prices of cryptocurrencies. During the 2020’s summer term, Bitcoin can be purchased at over $10,000. However, its price is now double the amount. Speaking of Altcoins, they are also not behind the competition. For instance, Ethereum had reached the $650 mark in December 2020 while Litecoin was more than $117. Unlike in June 2020, Litecoin can only be purchased for $41.
As financial analysts anticipate the buoyant market trend to linger into 2021, one of the future expectations of Bitcoin mining is the demand for state-of-the-art hardware and career opportunities to emerge. Hence, here are some of the things you can expect with the future of Bitcoin mining.
Bitcoin Mining Boom
Unlike traditional mining, Bitcoin mining doesn’t involve heavy-duty equipment, pans, shovels, and picks. Instead, the revolution to mine Bitcoin needs state-of-the computers that require electricity similar to the ones enough to power Austria or Ireland. Low-cost power is crucial to the triumph of every Bitcoin mining transaction; thus, miners are in search of a cheaper alternative to develop cryptocurrency.
Currently, China is leading the competition for Bitcoin mining because of its abundant wind power and inexpensive coal. The United States and Russia tie at the 2nd place, while New York and the Pacific Northwest are preferred for American mining sites.
Cryptocurrency mining such as Bitcoin mining is a volatile and high-risk business venture. In 2017, Bitcoin’s value has grown from $900 per coin to $20,000. However, it had fallen to 30% days after. Hence, a 73% overall downfall in 2018. In November 2020, a single Bitcoin’s value was priced at $17,670.
When prices increase, mining operations multiply and become profitable. When there is a price decrease, mining operations are at risk of losing business or are faced with modifying their business model. The 1st cryptocurrency mining initiative, Coinmint, is headquartered in a former Alcoa aluminum facility in Massena, New York. The factory is powered by low-cost hydropower operating a 435-MW transformer.
The increase of Bitcoin mining in New York initiated the local factory in Plattsburgh to assert a halt on mining operations because of Bitcoin’s high demand for power. As a result, its high demand for electricity has resulted in an increase in electricity expenses for ordinary clients.
The recent trend of high prices in Bitcoin has brought miners out of the traditional woodwork. As a result, Whinstone U.S. has opened its headquarters in the abandoned Alcoa aluminum plant for Bitcoin mining operations and as a data center of mining.
The significant boom of data center construction has also become advantageous for Bitcoin mining. Hence, a boom in Bitcoin mining is definitely an excellent business venture.
Since the future of Bitcoin mining looks promising, many companies have invested in developing new products for Bitcoin miners to flourish. We've listed down some of the state-of-the-art developments you can witness out of a Bitcoin boom.
A good motherboard is extremely crucial for Bitcoin mining. Hence, the primary component is the number of slots available for GPU card installation. For example, Asus B250 Mining Expert has 19 GPU card slots while MSI’s H310-F PRO has 13 slots. With the current standard for mining motherboards available in the market, Bitcoin miners can expect slight changes or few specialized ones from motherboard manufacturers in 2021.
On the contrary, Biostar, one of the major hardware manufacturers, recently developed an all-new TB360-BTC D+ motherboard specially made for cryptocurrency mining operations. Its motherboard contains eight PCIe x16 GPU card slots adequate for a standard rig.
New GPU Cards
Although the veteran company, Nvidia, has encountered challenges in its release of the flagship GeForce RTX3060 Ti, AMD is already in progress with the development of the newer models. That said, AMD already announced its release of the next-gen RDNA 3 design in the last quarter of 2021.
Despite some delays in launching more advanced GPU cards, Nvidia will release Super and Ti modifications which come as a treat for Bitcoin miners. As a result, the series will increase with GPU cards of distinct price ranges. Hence, many users have more selections when building Bitcoin mining rigs.
If you’re a professional Bitcoin miner, you’re probably aware of ASIC, or also known as Application-Specific Integrated Circuit. With ASIC, it’s a ready-made equipment that is extremely easy to program and set up. Aside from that, ASIC miners are the primary option when it comes to the hardware component.
Are you wondering what’s in use for 2020 and what hardware did miners invest in? If you prefer building your own mining rigs, the options of the high-demand mining equipment begin with GPU cards. As a baseline, 2020’s popular options include long-time rivals namely: AMD’s Radeon RX 6800 and Nvidia’s high-end GeForce RTX 3000 Series GPU.
Bitcoin miners are still wondering which of these brands are more efficient; however, the common question boils down to when will they become available to the general public.
As described, the choice of each aspect is critical for efficient Bitcoin mining. Aside from the ones we’ve already mentioned, stable internet connection and electricity are equally important. In addition, devices for Bitcoin mining can become hot and noisy. As a result, Bitcoin miners should adhere to safety precautions.
With Bitcoin mining becoming more popular than ever, more and more companies will develop devices for efficient mining. If you’re planning to become a Bitcoin miner, you shouldn’t think twice about investing in high-end rigs. Hence, one of the future updates we can expect out of Bitcoin mining is the boom of data centers, career opportunities, and hardware components.