Bitcoin mining in the 22nd century: What the Future Holds
As soon as the price of Bitcoin falls, here and there you can hear the prophecies that the mining industry is dying and the miners are about to turn off the equipment en masse and begin to capitulate. This was the case in May last year when the crypto market experienced one of the most powerful crashes in history, and more recently, when the price of BTC dropped below $30,000.
However, after Bitcoin set a new all-time high, no one began to turn off the mining equipment – on the contrary, it has risen in price several times, but even with inflated prices, it is still not enough devices for everyone.
The pioneers mined the crypto using the computer’s central processor. This method turned out to be ineffective since large capacities were required. So the era of video cards and ASICs began. As for the latter, entire companies have been opened in the USA to manufacture it. In particular, we are talking about ASICminer, Avalon, and Butterfly Labs.
Every year they update the lineup to keep up with the development of technology. Mining equipment has come a long way and continues to develop and improve to this day. Today, most professional miners invest heavily in GPU and ASIC farms, as well as in mining conditions, cooling systems, and uninterruptible power supply. Technology does not stand still and history is being written every day.
What awaits miners and equipment manufacturers in the future?
- Reducing energy costs per unit of power. With a more efficient device, it will take less electricity to mine one block, the generation of which is still harmful to the environment. Moreover, there is now an active transition to renewable energy sources and special equipment for this.
- Mining centralization. The hash rate and power will be concentrated in one or several hands because now it is not profitable to mine alone. Therefore, miners will unite in pools, by 2100 the number of pools may be reduced, and the quality may increase.
- Involving blockchain projects in an “arms race” with equipment manufacturers. Due to centralization issues and reputational risks, blockchain project developers are looking to move away from mainstream mining hardware and seek to develop their algorithms. On the other hand, both algorithm developers and hardware manufacturers are forced to constantly improve their products to remain competitive. Such conditions cause technological progress
One thing is for sure – technology will develop with lightning speed, and the last BTC will be mined before 2140 (official count). There is no problem that a person who acts for profit would not solve. In addition, after the “technological victory”, mining will have to overcome two main obstacles: government adaptation, ecology, and accessibility.
If we talk about the legal side of mining, then this is no longer an anonymous activity that no one knows anything about. Many governments are happy to accept miners and arrange suitable conditions for them – benefits and a simplified tax. Some, like China, are blocking and hindering this industry. However, over time, everyone all over the world will accept the blockchain and its development.
The issue of ecology has been actively resolved over the past decade, and today many people choose renewable energy sources – the sun, wind, and hydrogen. This has a positive effect not only on the environment but also on the profitability of mining in general, which develops the industry. In the future, every mining farm will be only on renewable energy sources.
The last issue is accessibility. How fast is society accepting cryptocurrencies and mining in particular? Today, it seems that this business is only for chosen ones: equipment selection, configuration, maintenance, process control – we can say that this is not for everyone. In order not to lose your investments, this should be left to professionals.
The number of people wishing to get involved in the cryptocurrency mining process far exceeds the possibility of entering this market, the reasons are different – both the complexity of the process and the high barriers of entry. What will happen with miners in 2100?
Taking into account our analysis above, we can say that the 22nd century will be the era of cloud mining – large centralized pools will rent their power to everyone who wants to become part of a huge ecosystem and get cryptocurrency.
Over the past 3-4 years, cloud mining has become the most profitable cryptocurrency mining option for an ordinary user or investor. It allows you to receive Bitcoin and other cryptocurrencies by renting computing power (hash rate) from a specialized service in a remote data center. This completely solves the issue of accessibility for everyone from any corner of our globe. It is enough to have access to the Internet and a device – professionals will do all the work for you.
MineXcoin announced in May 2019 the purchase of land in Georgia, Europe, which is loved by a wide range of advocates in the cryptocurrency mining space, with three buildings covering 100 acres with a total construction area of 190,000 square feet to accommodate Bitcoin mining customers, This is where the owners and operators conduct Bitcoin mining and facility hosting. The facility can be leased on a long-term basis, and a long-term power supply contract is provided to ensure sufficient power, so Georgia Europe is also one of the largest cryptocurrency mining sites in the world.
Since the beginning of 2020, the Georgian team has been working on building the world’s largest hosting company. By combining inexpensive energy costs, efficiently with market-leading development and operations teams, a single location can run machines and megawatts.
Europe’s Georgia integrated energy management system achieves a best-in-class energy cost of 2.5 cents per kWh. To improve industry reliability and responsiveness, we therefore assemble a team of experts and use cutting-edge technology for modifications and comprehensive analysis. Georgia Europe’s facilities have a total capacity of 750 MW, with an additional 300 MW under construction. The Georgian operation is considered the largest single Bitcoin mining facility in Europe in terms of development capacity. Georgia is now hosting bitcoin mining operations for three institutional clients, who are expected to consume up to 200 megawatts of combined power capacity by the end of 2021. In addition to hosting funds from clients around the globe, Georgia also generates engineering and construction services revenue, including revenue from the manufacture and deployment of immersion cooling equipment for Bitcoin mining. Georgia Europe, a wholly-owned subsidiary of MineXcoin, is expanding its cloud mining technology and has made a comprehensive strategic deployment to achieve sustainable development.