Since the inception of the first cryptocurrency over a decade ago, many have questioned its legality, and some have even dismissed it as fraud. But in 2020, it seems that the paradigm has changed. There is a general acceptance that Bitcoin (BTC) and other digital assets are not going anywhere, and that they will play an important role in the future of global finance.
This is not a far-fetched vision for cryptanarchists: financial actors who have traditionally feared cryptocurrencies are now expressing confidence in their destructive potential. For example, JPMorgan and Goldman Sachs recently changed their initial opposition to cryptocurrencies and were among the first to introduce new banking services and offers to the digital asset market.
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As optimism and understanding of the long-term potential of cryptocurrencies continue to grow, the chances of more income among the players in the ecosystem will grow. For example, the number of bitcoin miners increased by almost 50% per month in November, and bitcoin prices rose more than 60% to over $ 18,000 in the same period. In a highly competitive environment, however, success was largely limited to a few industry leaders and remained elusive for many.
For miners, access to high-tech mining equipment with the highest power and economy, as well as the fastest processing speed, is still the most important factor in securing a competitive advantage.
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The cryptocurrency mining industry has undergone a number of fundamental transformations to achieve a state-of-the-art technology. In the beginning, mining was done using simple computers without complex or powerful hardware. A general purpose CPU or CPU is all that is needed to produce bitcoin. This led to the rapid expansion of the Bitcoin network, as the attraction of simple money triggered an influx of newcomers – so much so that first-generation miners were unable to keep up with demand, leaving them obsolete in just one year.
After this, GPUs were introduced which made Bitcoin mining more efficient and profitable. The combination of multiple GPUs became popular as miners wanted to improve performance and mining features while increasing profits. Despite these advances, second-generation miners have not stood the test of time due to high power consumption and long-term inefficiency.
In 2011, the logical next step in the development was the field programmable gate array or FPGA. It was fast, very efficient and offered better performance and easier cooling than its predecessors. However, FPGA mining did not last long and was eventually replaced by ASICs, which even today are still the dominant technology in the bitcoin mining industry. ASIC is designed, built and optimized for the sole purpose of mining, and has been recognized for its excellent coordination of power consumption, performance and cost – about 1 million times more energy efficient and 50 million times faster for mining bitcoins than the processors used. in 2009.
The way forward
In fact, cryptocurrency mining has come a long way. In addition to performance-related improvements, there were also notable improvements in the environmental aspect of the technology, such as increased energy efficiency and faster hash speeds. This trend is likely to continue as greater emphasis is placed on sustainability, as chip designers seek innovative solutions to meet this growing need.
Two main directions for development come to mind. First, you need to upgrade existing mining equipment to drastically reduce energy consumption; Second, reprogram existing mining chips so that hybrid power can be used at an optimal cost.
Modernization of existing mining equipment. In fact, there are many concepts on the market that have been thoroughly researched and tested, and one of them is the use of optical chips to improve computing. In theory, the technology looks promising as the energy efficiency is two to three times that of modern electronic processors. In reality, however, it is unclear whether energy savings are achievable, especially with the increase in bitcoin volume. Until then, ASIC and its constant improvements will continue to dominate the cryptocurrency mining industry and increase the energy efficiency costs of cryptocurrency mining.
Reprogramming of existing mining operations. Contrary to many people’s beliefs, the cryptocurrency mining industry is relatively environmentally friendly.