Reportlinker Predicts Crypto Mining Hardware Market to Compound 10% Annual Growth in Next Four Years
Mining in the crypto industry is a crucial part of the market for most crypto platforms, and more people are getting involved with this process. A market research firm called Reportlinker recently created a report that included details about digital currency mining hardware and the market surrounding it. Based on the data that they have collected, it looks like the mining hardware market will be seeing a 10% compound annual growth by 2023.
The reason for this increase appears to be due to the increasing product launches that will help with reaching more customers involved with mining. The report notes that the increased demand for this kind of hardware has led to growth in the mining hardware market, as more miners need to get updated supplies.
One of the biggest challenges that the mining market has experienced has been the high cost of operating the machinery, considering the cost of electricity. Unfortunately, even with the high costs, miners are often plagued with low-profit margins. The growth of the cryptocurrency market is crucial to the growth of the mining world, but the recent losses of the crypto market have caused many companies to cease operations entirely.
A perfect example of this impact is Nvidia. The bear market lasted throughout 2018, impacting exchanges, investors, and miners alike. In a third-quarter report from Nvidia, the company explained that they were dealing with a “crypto hangover,” a term that they used to describe the excess of inventory that they were holding without anyone to buy their GPUs at the time.
Coinhive, a crypto mining service, announced two months ago that they were shutting down their operations, stating that maintaining the business was no longer a viable option. A 50% decline occurred with the Monero hard fork at the time, and Coinhive took the hit. The operations officially ceased on March 8th, though they allowed their customers to access their dashboards on the website through April 30th.