Crypto Mining: Thriving towards a $3.95 Billion market by 2028

[Cryptocrit]

The global cryptocurrency mining market is like a big computer game where people verify and record transactions of digital money like Bitcoin. In 2022, this market was worth about $2.61 billion. Now, because more people are interested in digital money and using blockchain technology in different ways, experts think this market will keep growing. They say it might reach about $3.95 billion by 2028, which is a bit more than it is now.

https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg5rmpvY4obrZ7Y_50tUjnhK9e6jy4U9ZNz0EoZfgwYCizFMDkSay3_u3yw1s8wiIyGyt0wX0kOwQup_SwFJnXFAg8rXTgEWIy4mnRl-0mM8YRLaUkPfY_MR2YIG5yuPCzqTxjZzGp9GRghEoSczTaGcDvY3Mkdhzvg6Z6c-ghtYMWppXAzE854axx7nleC/w640-h638/Screenshot_1.jpg

https://www.cryptocrit.xyz/2023/09/crypto-investment-thriving-towards-395.html

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[DeathAngel]

When it becomes clear that bitcoin is the apex predator of assets that will swallow a huge % of the worlds investment liquidity, nations will be falling over themselves to get the largest possible % of hash power. Blackfock already invested in a number of large miners. It will be really interesting to see it play out over the next decade or two.

[Husires]

All altcoins are moving towards proof of stake due to the costs of constructing mining farms, in addition to the fact that POW coins are decentralized, which means that the developer will not earn anything, and the energy consumption, only the 1% of cryptocurrencies will continue to POW in the coming years.
The Bitcoin mining market is constantly growing and the value of this market is much greater than the $3.95 billion that the report said it would reach by 2028. According to companiesmarketcap.com, the current market value of mining companies is about $7.69 B with more than 18 companies operating, so the market value will inevitably reach 50 billion by 2028.

https://companiesmarketcap.com/bitcoin-mining/largest-bitcoin-mining-companies-by-marketcap/

[Tytanowy Janusz]

All altcoins are moving towards proof of stake due to the costs of constructing mining farms, in addition to the fact that POW coins are decentralized, which means that the developer will not earn anything, and the energy consumption, only the 1% of cryptocurrencies will continue to POW in the coming years.

isn't it that there is no point in creating POW altcoins because they are very easy to attack? Such BSV, for example, uses the same mining equipment as BTC, but has only 0.1% of BTC hashrate. So it is enough for 1 large BTC miner, who has 1 per mille of BTC computing power, to switch to BSV for a moment and can do whatever he wants there, and then return to BTC mining? Therefore, POW works great only for the leader on a given hardware (ASIC or GPU)?

According to companiesmarketcap.com, the current market value of mining companies is about $7.69 B with more than 18 companies operating, so the market value will inevitably reach 50 billion by 2028.

$50B seams to be way to much in just 5 years. during this time we will only have 1 bull run or none at all. With ath probably around $150k (in 2025) and the next low around $50k (in 2027). This is not enough fuel for the almost 10x increase in miners market value.

[Husires]

isn't it that there is no point in creating POW altcoins because they are very easy to attack? Such BSV, for example, uses the same mining equipment as BTC, but has only 0.1% of BTC hashrate. So it is enough for 1 large BTC miner, who has 1 per mille of BTC computing power, to switch to BSV for a moment and can do whatever he wants there, and then return to BTC mining? Therefore, POW works great only for the leader on a given hardware (ASIC or GPU)?

It depends on how the mining pool works. In the end, they are mining for profit. After Bitcoin mining pools have the possibility of exploiting part of the hashrate to mine Bitcoin Cash and Litecoin such as ViaBTC, F2Pool, but starting a new currency from scratch using the POW principle will require more effort and time compared to POS.

$50B seams to be way to much in just 5 years. during this time we will only have 1 bull run or none at all. With ath probably around $150k (in 2025) and the next low around $50k (in 2027). This is not enough fuel for the almost 10x increase in miners market value.

I took into account that the BitcoinETF might be approved, and these institutions that manage trillions of dollars will establish mining farms if they want to hold Bitcoin and ensure that everything is sufficiently decentralized, but let's say it will multiply 3 times, reaching 24 billion.

[Tytanowy Janusz]

I took into account that the BitcoinETF might be approved, and these institutions that manage trillions of dollars will establish mining farms if they want to hold Bitcoin and ensure that everything is sufficiently decentralized, but let's say it will multiply 3 times, reaching 24 billion.

its not how it works. none of these big companies will own bitcoin or care about its price. They will only be the intermediary for the small players. You will buy 1 BITCOIN ETF UNIT and they will buy 1 bitcoin on your behalf on the spot market. They don't need to have mining farms. Besides, the whole ETF news is overhyped for me.

[el kaka22]

I am not sure if this calculation is correct, there could be some more issues about it and we may need to take a look at it, but I think if we are nearing 4 billion dollars by then, there would be even bigger players involved by that time. I mean that is a huge market and should be considered something profitable enough for larger companies to get in.

We need to realize that all those "large" crypto companies right now are still small, there could be companies that worth tens of billions of dollars even today without crypto mining, that goes into crypto mining as well. We have seen some large companies start to buy bitcoin, but not yet mine bitcoin, there isn't a single company worth over a billion dollars that does this yet, and if this happens I am sure there will be a few at least.

[cryptomaniac_xxx]

Same as others, I think the calculation could be a hit or miss in the next 5 years. Sure there are a lot of players in mining industries, big one, but as far as altcoin goes? I'm not sure if there are coins that you can mine with just your GPU, I think the game has change and everyone is moving to PoS at least and that's how I understand it. But still though, it might not be enough to pull the numbers as the market has cycles or phases. Just look at Nvidia though, during the bull run, the board maker says they make a lot of money because crypto miners are using their their GPU.

But after that they change their tune during bear market and blame crypto for the shortage of their GPU,

“All this crypto stuff, it needed parallel processing, and [Nvidia] is the best, so people just programmed it to use for this purpose. They bought a lot of stuff, and then eventually it collapsed, because it doesn’t bring anything useful for society. AI does,” Kagan told the Guardian.

“With ChatGPT, everybody can now create his own machine, his own programme: you just tell it what to do, and it will. And if it doesn’t work the way you want it to, you tell it ‘I want something different’.”

Crypto, by contrast, was more like high-frequency trading, an industry that had led to a lot of business for Mellanox, the company Kagan founded before it was acquired by Nvidia.

https://www.theguardian.com/technology/2023/mar/26/cryptocurrencies-add-nothing-useful-to-society-nvidia-chatbots-processing-crypto-mining

[Tytanowy Janusz]

We have seen some large companies start to buy bitcoin, but not yet mine bitcoin, there isn't a single company worth over a billion dollars that does this yet, and if this happens I am sure there will be a few at least.

I think we already have "a single company worth over a billion dollars that does this"

"Largest Bitcoin miners by market capitalization
1   Riot Blockchain 1RIOT   $1.74 B
2   Marathon Digital Holdings 2MARA   $1.49 B
3   Bitdeer Technologies Group 3BTDR   $1.04 B"
https://companiesmarketcap.com/bitcoin-mining/largest-bitcoin-mining-companies-by-marketcap/

[bluebit25]

The mining game will focus on bitcoin, as cryptocurrencies gradually switch PoS.

If you look at the perspective of crypto development in the future when it gets bigger, people interested in it in many different forms will come and mining will always be paid attention to because it is a part of crypto bitcoin system. I still regularly monitor updates on chain speed, climate, energy fuel prices, and the costs that mining teams have to pay to meet, which are really big numbers to invest.