The cryptocurrency mining market is surprisingly small

Feb 12 20:02 2018 Print This Article

 

Bitcoin (BTC) and Ethereum (ETH) are generated by a process called “mining”. Here we look at the size and scope of the overall cryptocurrency mining market.

It’s surprisingly small.

We recently surveyed the top 100 cryptocurrencies by market cap and only 28 are mineable. The market is also extremely concentrated; most of the mining is BTC and ETH. We also provide a bit of background on GPU vs. ASIC mining.

The big conclusion: As Ethereum moves to a Proof-of-Stake system, which may happen in 2018, those owning GPU mining capacity will be scrambling to find profitable opportunities.

ASIC vs. GPU mining

ASICs (Application Specific Integrated Circuits) are custom-designed microcircuits optimized to execute a limited instruction set very rapidly. Bitmain, a Beijing-based concern, is the dominant designer and manufacturer of ASIC-based mining systems. Where an ASIC is applicable, it is vastly cheaper and faster than competing solutions.

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About Article Author

Cantech Letter

Founded in 2008 by Nick Waddell, Cantech Letter is an online magazine focusing on Canadian technology. The site has grown into one of the most popular and respected financial sites in Canada, and was described by Canadian Business Magazine as “one of Canada’s premier technology newsletters”. Waddell, who is Senior Editor, is routinely called on by the mainstream media for perspective on Canadian technology, and has been featured on BNN, CTV News Channel, and the CBC program “The Lang and O’Leary Exchange” in addition to mainstream print media such as The Guardian, The International Business Times, The Globe and Mail, Macleans, The Waterloo Record , Canadian Business, Slate, and Business Insider. You can email Nick at nick@cantechletter.com Cantech Letter is focused on those companies listed on the TSX and TSXV Technology, Cleantech and Life Sciences Sectors. Each year we present the Cantech Letter Awards, which honor Canada’s Top Technology Stock and Top Technology Stock Executive.

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