The mining industry is also entering a new era that involves institutional actors, but with the growth of the sector, potential challenges can occur. With the crypto adoption, institutions are also dwelling into the industry realizing the potential future of crypto mining.
Producers of Mining Rigs
In 2018, crypto mining reached a peak value in growth as prominent miners’ producer Bitmain delivered 95,000 rigs in a week. As a result of a legal battle, the production rate of Bitmain has decreased but other companies have witnessed growth. For instance, MicroBT has produced nearly 1.3 million crypto mining machines this year, which accounts for 25,000 per week.
The manufacturers of the mining rigs have changed some policies with the inflow of big tech clients. For instance, they have rolled out warranty policies as well as the facility of repair centers. Shares of many mining firms are now listed over the traditional markets.
With the entry of institutional actors, the industry of mining pools is growing at a rapid rate. What’s more, the mining pools have witnessed a list of new features including incentive features and transparency.
It is imminent that big players will do the financialization of the hash rate, such as the creation of products, including options and futures, for hedging cash flows.
It is still yet unknown how the mining industry will evolve but it is true that it will take a new shape in the next five years. The institutional players will add new features in the sector such as the evolution of mining pools. Many individual miners left the mining process because they did not afford the operational costs. To make the blockchain of the world’s leading cryptocurrency more secure, there is a need for giant tech institutions in the mining sector.
With the growth of the crypto mining sphere, the Bitcoin network will become more secure and active. With the potential future of Bitcoin, there is an optimistic future for the people who are involved in mining cryptocurrency, including Bitcoin.