Cryptocurrency Mining Trends 2019/20
The world of Cryptocurrencies is nothing short of an industry on its own. Since their inception in 2008, the area has grown from a small-sized pond to an entire ocean. With areas and niche markets developing within the industry of cryptocurrency and blockchain, it is obvious to think that there is a lot to gain for anyone daring enough to make the stride.
One such niche market within the industry is the area of Cryptocurrency Mining and Staking. Cryptocurrency Mining is the process of running highly complex computing machines capable of astronomical amounts of calculations, with sole the task of helping to secure a particular blockchain network. For this, the “miners” as the people involved are called, receive rewards from the protocol they help secure.
In its nascency, the mining of Bitcoin was not that hard. Users could mine Bitcoins on their laptops and personal computers. But the algorithm of the Bitcoin blockchain was designed such that as the number of users grew, the difficulty of gaining rewards grew along with it. Thus, it became infeasible to continue mining on small general-purpose devices. Eventually, we reached a point where the only way one could earn rewards was by investing huge amounts of money to set up highly specialized computing machines. Very few are technically equipped to do that.
Today, the Bitcoin blockchain’s total hash rate (the computation power of the network) is reaching a quadrillion hashes (10^15) or 100,000 Tera Hashes. And so, it is obvious as more computing power enters, the difficulty of mining a block will rise along with it. This also acts as a testament to the ever-growing interest of cryptocurrency enthusiasts to join the ride and get their hands on the incentive mechanism, by mining or staking. To cope up with the ever-increasing demand for efficiency and speed, we at Oregon Mines promises its clients guidance and advice on how to get started and maximize profits.
With the sole aim of giving our readers and customers a sense of what is currently going on in the mining industry, Oregon Mines has accumulated a set of references and resources that might come in handy. Let us begin with a little market knowledge.
Where are we headed?
The Cryptocurrency mining industry is one of the most competitive areas in the blockchain sector. The industry is dominated by a small number of key players, such as Bitmain Inc, a cryptocurrency mining machine manufacturer; Cannan, Bitmain’s biggest adversary and other manufacturers such as Innosilicon and MicroBT. The competition is fierce and cut-throat, as all the companies are constantly engaged in R&D to develop better and faster machines and attract new customers.
Last year (2018), mining manufacturers in the industry alone pulled in revenues exceeding $2 billion, while at the same time making money for their customers by providing world-class mining machines.
The competition has also allowed for some amazing innovations in the computing industry, as the companies have to develop smaller and faster machines, consume energy efficently and produce at scale with the lowest costs. This competition has resulted in Bitmain recently releasing its newest members of the flagship Antminer series, the Bitmain Antminer S17 and the Bitmain Antminer T17, their third release in the last two years. The S17 is considered by many to be the best equipment in the business due to its promise of increased efficiency and highest computing power at the lowest energy consumption per computation. The S17 variant comes anywhere from 53 TH/s up to 74 TH/s, some four to five times the computing power of its predecessor, the Antminer S9.
Positioning itself as the biggest competitor to Bitmain, Cannan is one of the leading manufacturers of Cryptocurrency mining equipment. It is not far behind Bitmain when it comes to innovation. Cannan pushed boundaries further when they became the largest producers of the world’s first independently innovated 7nm chip. This innovation increased efficiency, as the chips will now require less space, and so more of them can be stacked together.
The Role of Oregon Mines
Oregon Mines operates a 3MW data center in Oregon. The company has been in continuous operation for more than 5 years, with a reputation of being the most competitive in the business. We are engaged in hosting miners owned by third parties, which is the process of delegating the task of setting up, providing power, cooling, monitoring, and a reliable internet connection, the basic requirements of mining successfully. We assume all the responsibilities when it comes to taking care of the equipment, ensuring 24/7 run time and monitoring the whole process.
We believe that successful mining involves much more than just placing a miner on a rack and plugging it in. Our full-service hosting fees include set-up, monitoring, small repairs, reboots, cleaning, and reinstallation of firmware when needed. Other than Bitcoin, we also help users mine cryptocurrencies of their choice. Bitcoin Cash, Ethereum, Ethereum based ERC tokens, and other altcoins can be mined through our services.
Bitcoin Mining is a long game, that requires patience, trust, and technical skills. Even though the profitability in some or all of the rigs might not be as much as the owners were originally promised, in the long run possessing bitcoin that was earned through the Bitcoin mining mechanism can prove to be extremely fruitful, as Bitcoin poses itself to reach greater heights. Oregon Mines provide a better alternative for investors looking to join the ride but aren’t technically equipped and/or don’t have the power and space necessary to mine themselves. Our choice of location where hydropower is available at a low cost allows us to offering full service hosting at a cost that is less than the investor’s cost of electricity alone in their primary location.
Our hosting rates are competitive and the standard contracts are month-to-month. We do offer discounts for longer-term contracts and prepayments. However, Oregon Mines doesn’t compete on cost alone, but instead on maximizing our clients’ mining profits. We are happy working with new miners to help them navigate the complications involved with wallets, pools, and equipment selection.
At Oregon Mines, we do not limit ourselves to relying on increasing demand, but rather consciously engage in diversifying our portfolio. Our primary focus is to host the highest variety of mining equipment, with no minimum barrier for any of them. We leave it to our customers to choose the equipment and mining pools of their choice and provide free VPN access.
In articles that follow, we will study in depth the Cryptocurrency Mining Industry, the intricacies of mining machines, the ROI on different equipment, and other important aspects. We hope this will be useful to our readers in realizing the benefits of getting involved in cryptocurrency mining and how Oregon Mines can help them in profitably participating in the dynamic, fast moving, Cryptocurrency market. This is just the beginning of what is poised to be a bumpy, yet fruitful ride.