CRYPTOCURRENCY MINING MARKET ANALYSIS

The high volume of electricity consumption required for cryptocurrency mining can hamper the global cryptocurrency mining market growth. Cryptocurrency mining is an electricity-intensive process as powerful computer processors are needed to continuously run complex algorithms to verify transactions and add new blocks to the blockchain.

Market Opportunities: Emergence of ASIC resistance coins

The emergence of ASIC-resistant coins can offer opportunities for the global cryptocurrency mining market growth. ASIC-resistant coins such as Vertcoin, Zcash, and Monero are designed to prevent the dominance of specialized mining chips called ASICs, making GPU and CPU mining possible. This democratizes the mining process and allows individual miners to participate effectively. As the high costs and economies of scale associated with ASIC mining inhibit participation, ASIC-resistant coins lower the entry barriers to mining. This fosters greater decentralization in line with the original vision of cryptocurrencies.

ASIC-resistant coins, with their more distributed and accessible mining networks, are appealing to many prospective miners. With ASIC mining concentrated mostly among big mining farms, hobbyists and enthusiasts are disenfranchised. ASIC-resistant coins redress this imbalance by giving ordinary users an opportunity to mine and be a part of securing cryptocurrency networks using generic hardware. By making mining openings for SMEs and individuals worldwide, ASIC-resistant coins have seen a steady uptick in their user bases. For instance, according to a report published by United Nations, over 10 million new Zcash wallets were created in emerging markets from 2020 to 2021 as its ASIC-resistance increased participation.