Despite heavy calls from environmentalists to end the practice, it doesn’t look like crypto mining is leaving us anytime soon. In fact, it appears that the space is going to get even bigger in the coming years.
Crypto Mining Continues to Expand
There is a widespread desire for digital assets, and as this desire grows, miners are being asked to place more units into circulation. Thus, crypto mining is still very much in style, and so long as people continue to demand access to crypto investment options, the mining space is not going to die. According to a new report issued by Branessence Market Research, the crypto mining industry reached USD 2285.4 million just last year.
That same report believes this number will expand to a whopping USD 5293.9 million by the year 2028. This means the crypto mining space will more than double its present size in just under six years.
This is huge for the industry given that there has been so much opposition to it, even from high-profile individuals like Elon Musk of Tesla and SpaceX fame. The South African billionaire and entrepreneur announced last year that he was going to allow customers of his electric car company to purchase vehicles with bitcoin. However, this ultimately came to a standstill just a few weeks later when he decided that given the amount of energy used by bitcoin miners, he was rescinding the decision.
Musk did not want to be part of the weakening climate that bitcoin mining was allegedly responsible for. As a result, traders could no longer buy Tesla vehicles with crypto, and the price of bitcoin suffered soon after that.
In addition, the crypto mining arena has faced a lot of hate and criticism from regions such as China, which at one point housed anywhere between 65 and 75 percent of the world’s crypto mining projects. Several industry leaders had to shut down their operations last summer when the country decided that the process was no longer legal. They either had to close out for good or move to different regions that would accept their mining initiatives.
How Does It Work?
Despite maneuvers like this, the demand for crypto has not died down, which means that the mining industry is slated to live on for a lengthy period. The process of mining is a complicated one; it involves the solving of quantum math problems that ultimately result in crypto blocks being extracted from the blockchain. From there, the blocks are placed in circulation for those looking to trade, purchase, and sell, while the miners themselves earn specific rewards – usually in crypto – for solving the equations.
So long as individuals lose their trust in fiat currencies and seek alternative ways to invest and garner financial independence, crypto and the mining process are likely to survive.