Cryptocurrency mining is a practice as old as the first cryptocurrency. And, like the fast-paced industry underpinning it, crypto mining requires attention to keep up with the constant updates. For instance, in the early days, anyone with a computer and some technical skills could mine cryptocurrencies like Bitcoin. Fifteen years later, mining difficulty has skyrocketed, making solo mining of major cryptocurrencies practically impossible. Investor-backed mining farms using powerful computers that solve complex mathematical problems at incredible speeds dominate the industry.
This article delves into the state of modern-day crypto mining, exploring its methods, costs, profitability and environmental footprint.
What is cryptocurrency mining?
Cryptocurrency mining is the process of validating blockchain transactions through a proof-of-work (PoW) consensus mechanism. It involves solving complex mathematical puzzles with specialized computer hardware to verify the legitimacy of new blockchain transactions. Miners are rewarded with freshly minted cryptocurrency units for their efforts.
Mining is critical for maintaining security and decentralization within a blockchain network. Bitcoin, Litecoin, and Dogecoin are among the most popular blockchains that rely on miners to verify transactions.
Crypto mining in 2024: CPUs to ASICs
Satoshi verified the first Bitcoin block in 2009 using a computer’s basic central processing unit (CPU). However, as cryptocurrencies gained popularity, the mining industry shifted towards more complex mining hardware. By 2010, miners were migrating to Graphics Processing Units (GPU), which used complex graphic cards from companies like Nvidia for computations.
GPUs later paved the way for the much more powerful Application-Specific Integrated Circuits (ASICs) as mining blossomed into a billion-dollar industry. The first ASICs had a processing power that was at least 200 times greater than that of a standard GPU miner.
ASICs run complex algorithms at breakneck speed, securing networks and rewarding their operators. They are popular among Bitcoin miners due to their high hash power and energy efficiency. Some other cryptocurrencies can still be mined using GPUs and CPUs, and some, like Monero, are resistant to ASICs.
Mining pools have also emerged as a trend as individual mining becomes more difficult. Miners combine their hashing power to compete more effectively. While desirable, this consolidation of power raises concerns about centralization and the future accessibility of mining to small players.
Top ASIC Miners for 2024
While more expensive than GPUs and CPUs, ASICs lay the groundwork for the next generation of mining rigs. They are specifically designed for the hash algorithms used by a given cryptocurrency This enables them to perform computations significantly faster and with much lower energy consumption than GPUs.
In the table below, we have compared the top 5 ASIC miners for 2024 to help you make an informed decision on the one that fulfils your needs.
Note that the prices shown below are not constant, and vary by vendor.
| Manufacturer | Miner | Hash rate (Th/s) | Power consumption (Watts) | Price |
| MicroBT | WhatsMiner M63S | 390 | 7215 | $11,409.00– $11,578.00 |
| MicroBT | WhatsMiner M63 | 334 | 6646 | $9,622.00 – $10,277.00 |
| Bitmain | Antminer S19 Pro | 110 | 3250 | $1,802.00 – $1,917.00 |
| MicroBT | WhatsMiner M30S++ | 112 | 3268 | $1,260.00 – $1,438.00 |
| Canaan | AVALONminer 1246 | 90 | 3420 | $2,100.00– $2,899.00 |
Miner profitability in 2024: should you get involved?
The volatile nature of cryptocurrency prices is an important consideration when evaluating profitability as a miner. Several factors influence the price of a cryptocurrency, including market sentiment, news events, and regulatory changes. Understanding these complex dynamics is critical because of the significant effect they have on price stability.
Bitcoin Halving and its effect on Miner profitability
Bitcoin is less than 100 days away from an important event known as the halving. The bitcoin halving event, which occurs approximately every four years, reduces the number of newly created bitcoins awarded to miners by half.
Since the last halving event in 2020, the miner reward has been 6.25 bitcoins. Following this year’s halving event, which is expected to occur around April, the reward will be reduced to 3.125 bitcoins.
The price of Bitcoin has historically risen post-halving, offsetting the impact of reduced rewards. However, there is no certainty that this trend will continue this year. Even then, prices do not rise immediately. Miners must prepare for the short-term effects of reduced rewards.
Crypto mining and market fluctuations
Adding new blocks becomes more difficult as the number of miners on a network increases. This increased mining difficulty can limit supply, potentially driving up prices.
However, unprofitability may scare away miners. If miners leave, the difficulty decreases, resulting in a greater supply of new coins and downward pressure on the price.
Crypto mining and environmental concerns
Cryptocurrency mining has sparked widespread criticism from environmentalists worldwide. The Proof-of-Work (PoW) consensus mechanism used by cryptocurrencies like Bitcoin requires a lot of energy to solve complex algorithms. “Proof of work is a huge competition across computers, and that race to find a solution takes a lot of power,” Creative Emergy CEO Marc Lijour once said.
The massive electricity consumption, which has at some point exceeded the annual usage of small countries, raises concerns about carbon emissions and resource depletion. As a result, less energy-intensive consensus mechanisms such as Proof of Stake (PoS) are gaining popularity. In September 2022, Ethereum took a significant step towards a greener ecosystem with “The Merge.” The previous PoW network switched to a PoS system, reducing its energy requirements by more than 99%.
Such a transition for Bitcoin is harder. As a result, experts have proposed alternative methods, such as sourcing power from renewable sources and recycling the heat—a practice already gaining adoption globally.
Don’t forget about exchanges!
If you are not ready to become a real miner, there are other ways to work with crypto. And you can do it profitably and regularly.
We are, of course, talking about exchanges and trades. If you are interested in this, you should try HiRiBi.
The working conditions and prices there will quickly turn you into the biggest fan of crypto exchanges!
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