Cryptocurrency (illustrative)
Cryptocurrency (illustrative) iStock

Bitcoin was one of the hottest topics last year in both the financial and business sectors. Many industry experts assumed that the humble Bitcoin would never recover from the decrease in value that took place from 2018 to 2019. However, last year proved to be record-breaking for digital currency which has led to the crypto mining industry experiencing rapid growth and continued innovation. Many devoted parties have indicated that they believe this rapid growth and adoption of cryptocurrency to be just the beginning.

The Evolution of Crypto Mining

The cryptocurrency mining industry has undergone several substantial transformations over the last decade to achieve the advanced state that it is in today. Early on, bitcoin mining was possible with the use of simple computers than the high-powered and complex devices that are required today. General CPUs (central processing units) were enough to mine successfully for bitcoin. This simplicity led to the rapid expansion of the BTC network and the promise of financial remuneration for an easy task led to an influx of new entrants. Eventually, first-generation miners were not able to keep with the increasing demand and were rendered obsolete in just 12 months. The next development that led to more profitable and efficient mining was the graphics processing unit. The combination of several GPUs became commonplace as miners attempted to increase their performance and gains. However, even these second-generation miners were eventually outdone by field-programmed gate Arrays or FPGAs, which were later replaced by ASICs which are currently still being used today.

The Next Step

Experts expect that the current mining hardware will be improved upon. There are already several concepts that are being researched and are in their beta phases. One of these methods is the use of photonic chips to increase computing performance and output. Theoretically speaking, the technology seems to be promising and is 2-3 degrees more efficient than the electronic processor. However, it remains to be seen whether the power efficiency is realizable in reality, especially as Bitcoin is expected to scale. Until the tried and tested better version of ASICs make it to the market, miners are expected to continue to generate income with ASICs. Another option would be to reprogram the mining chips that are already in use. The benefits of using renewable energy have its obvious benefits but cannot sustain miners throughout, which is why a hybrid model is best to adopt for many career miners.

The Road Ahead

Crypto has certainly come a long way. Besides the performance-related improvements, there has been an increase in usage of the best bitcoin trading robot and faster hash rates all around. There is a growing focus on sustainability which focuses on all key aspects of the industry. Developers are constantly attempting to create better and more efficient technology, while investors are looking for safer and comprehensive ways to trade and manage their investments. As cryptocurrencies rise in prominence, there will be a greater influx of completion and providers who are trying to break out into the lucrative market.

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