Cryptocurrency mining is a process of verifying and adding transactions to a ledger, known as the blockchain. In return, miners are rewarded with newly created coins or a fraction of coins. Mining is an essential part of the cryptocurrency ecosystem. The mining method is resource-intensive and requires significant electricity and computing power. As a result, it’s often associated with large-scale operations conducted by professional miners with access to expensive equipment.
But with the rise of cryptocurrencies, mining has become more accessible to individual users with less powerful hardware. This increasing popularity of cryptocurrencies has led to a surge in crypto mining activity across the globe. And Australia is said to be one of the most significant contributors to this industry.
In recent years, cryptocurrency mining has become one of the major industries in Australia. With the country’s abundant resources of electricity, land, and highly-urbanized areas, it’s well-positioned to take advantage of the growing global demand for crypto. In other words, Australia is fast becoming a crypto mining powerhouse.
To give you insights, here are some trends and prospects of cryptocurrency mining in Australia.
1. Bitcoin Mining Is Still Dominant
Bitcoin mining is still a dominant activity in the Australian industry. This isn’t surprising, given that Bitcoin is one of the world’s most popular and valuable cryptocurrencies.
According to research, one of the Australian data infrastructure and Bitcoin mining groups plan to develop a data center in the island state of Tasmania to mine Bitcoin. It has 100% renewable energy with 35 megawatts and will expand by 100 megawatts in the coming years.
Moreover, one of the miner’s shares surpasses the mining peak—growing more than 7%. However, 67% of the stock is still red this year due to the public mining firm’s performance and other circumstances.
That said, Bitcoin is still facing some challenges but remains one of the most dominant and profitable cryptocurrencies to mine. So, there’s a good chance that Bitcoin mining will continue to grow in the years to come. If you want to know more about Bitcoin mining, you can check right here or other reliable sources online.
2. Ethereum Mining Is Gaining Popularity
Another trend and promising crypto mining in Australia is Ethereum mining. It’s the second-largest cryptocurrency by market capitalization and has been gaining traction in recent years.
One of the well-liked qualities of using Ethereum is the betting games where you can play with Ethereum tokens called Ether. Ethereum betting is also gaining popularity as it allows users to gamble without worrying about regulatory or central authority.
Furthermore, Ethereum’s price is USD$4,000, which is 12.9% lower than its all-time high from the last few months. Despite the recent dip, this crypto network still has a bright future. Thus, making Ethereum mining a profitable activity.
3. ASIC Rigs Are On The Rise
Application-Specific Integrated Circuit (ASIC) rigs are computer chips designed specifically for mining cryptocurrencies. They’re more powerful and efficient than general-purpose chips Graphics Processing Units (GPUs) and Central Processing Units (CPUs). ASIC miners are gaining much attention in Australia’s crypto mining world as they offer a higher hash rate (mining speed) at lower power consumption.
ASIC miners help solve complex mathematical problems faster, which helps verify and add transactions to the blockchain quicker, resulting in a higher reward. On top of that, ASIC only runs one specific algorithm, making it more efficient than GPUs that can run multiple algorithms.
This trend is expected to continue as more individuals invest in ASIC mining in the coming years. But before you get this mining device, look for a reputable ASIC supplier. There are plenty of ASIC rigs in the market, and not all are created equally.
4. Cloud Mining Is Gaining Traction
Cloud mining is a type of cryptocurrency mining that involves leasing or buying remote mining power from a cloud mining service provider. This is one of the favored trends in Australia’s crypto industry as it offers several advantages, such as:
- Don’t require expensive mining equipment
- No need for high electricity bills
- Little to no noise
One of the most in-demand cloud mining service providers in Australia is Hashflare. It offers a lifetime Bitcoin cloud mining contracts with algorithms SHA-256 and Scrypt. Investors can also choose to mine major and minor coins from other cryptocurrencies such as Ethereum, Litecoin, Bitcoin, Zcash, Dash, and more.
That said, cloud mining can be an excellent way to get into the crypto mining field without dealing with the hassle of setting up your own mining rig.
5. Proof-Of-Stake Is Booming
Proof-of-stake (PoS) is a consensus algorithm that allows users to mine or validate block transactions according to how many coins they hold. This is different from proof-of-work (PoW), which requires miners to solve complex mathematical problems to authenticate transactions and create new blocks.
The Australian cryptocurrency mining industry will continue to grow in the coming years as many miners could switch to PoS. This is because PoS is dramatically more energy-efficient than PoW. It’s also less vulnerable to 50% of attacks (when a group of miners controls more than 50% of the network’s mining power). As a result, PoS is seen as a more sustainable consensus algorithm in the long run.
The cryptocurrency mining industry in Australia is growing at a rapid pace. And you’ll likely see an increase in people and businesses involved in crypto mining. This prediction could positively impact the economy, as mining activity generates revenue and creates jobs. It could also drive innovation in the sector as new companies seek to develop more efficient and effective mining solutions.
So, if you’re thinking of getting into the crypto mining world, it may be your time to do your research and make a move. Just stay updated with the latest trends and developments to make the most out of your investment.