Cryptocurrency mining, which started as a niche hobby, has evolved into a global industry supporting the operation of digital currencies like Bitcoin and Ethereum.
This process involves unlocking new cryptocurrency units by solving complex mathematical problems using computational power, followed by authenticating and verifying them on the blockchain.
As demand for decentralized finance grows, the complexity and scale of crypto-mining operations increase.
Today, crypto mining is a full-fledged profession, with nearly 1 million Bitcoin miners worldwide. It is an essential component of the cryptocurrency ecosystem, driving the digital asset space.
We have gathered data that underscores the significance and scale of cryptocurrency mining in the broader crypto landscape.
Crypto Mining Market Size
In 2023, the global cryptocurrency market was valued at $1925.2 million. Experts predict this market will experience a compound annual growth rate (CAGR) of 8.20% from 2023 to 2031.
The cryptocurrency market, particularly in mining, is demonstrating significant growth, with a substantial increase in market size from 2023 to 2031.
Crypto Mining Market Regional Analysis
Although the exact market size for individual countries is unavailable, recent reports of 2024 indicate that India is expected to experience the highest compound annual growth rate (CAGR) in the crypto mining market, at 13.8%, from 2023 to 2024.
The UK and Brazil follow closely, each with an anticipated CAGR of 13.3%.
The cryptocurrency mining market is globally distributed, with miners operating across North America, Europe, the Asia Pacific, Latin America, the Middle East, and Africa.
Hash Power Requirements For Crypto Mining
Hash rate, or hash power, is the muscle behind cryptocurrency mining.
It shows how much computing power a miner’s hardware has by measuring how many hash operations it can perform each second to solve the puzzles needed to verify transactions on the blockchain.
A higher hash rate means more power, which boosts the chances of successfully mining a block and earning rewards.
Instead of focusing on individual hash rates, we consider the collective hash power used by miners in different countries.
In 2022, the United States was projected to hold the highest share of global hash power at 38%, followed by China at 21%, Kazakhstan at 13%, Canada at 7%, and Russia at 5%.
Global hash power distribution highlights the United States’s dominant role in the cryptocurrency mining industry, with significant contributions also coming from China and Kazakhstan.
Crypto Mining Revenue Statistics
In 2021, crypto mining revenue reached $59.39 million.
In 2022, the highest daily revenue from crypto mining was $42.2 million. In 2023, this peak increased to $56.4 million. As of May 2024, the daily revenue reached a new high of $79.8 million.
North America, leading globally, generated $777.1 million in crypto mining revenue by 2023.
Europe followed with $577.6 million, while the Asia Pacific and South America regions reported $442.8 million and $96.3 million, respectively. The Middle East and Africa had the lowest revenue, at $38.5 million in 2023.
Crypto Mining Market Share
In 2022, crypto mining accounted for 76% of the total revenue generated in the cryptocurrency market, while transactions contributed 24% to the overall revenue.
Crypto mining dominated the revenue generation in the cryptocurrency space in 2022, significantly outpacing transaction-based revenue, which comprised just a quarter of the total.
Crypto Mining Costs
Crypto mining is costly, whether done individually or in a mining pool. Expenses include both the initial investment in equipment and ongoing energy costs.
These costs vary by cryptocurrency, as different coins require different computational power levels, directly impacting energy consumption.
Cost To Mine One BTC
In 2020, the average cost to mine one Bitcoin (BTC) was $6,252.88. By 2024, this cost had surged to $26,218.51, marking a 319.75% increase over four years.
The dramatic rise in mining costs over this period underscores the increasing difficulty and energy consumption associated with Bitcoin mining, likely driven by advancements in mining technology and higher energy prices.
Crypto Mining Statistics
- Bitcoin was first mined in 2009. (Source – scoop.market.us)
- According to 2022 reports, Bitcoin and Ether mining were estimated to account for 12% of global carbon emissions. (Source – bybit.com)
- According to the mining pool Foundry, New York is the leading U.S. state for Bitcoin mining, contributing a hash rate share of nearly 20% (19.9%). (Source – llcbuddy.com)
- Renewable energy sources power 58% of the electricity used for Bitcoin mining. (Source – llcbuddy.com)
- Four major cryptocurrency mining companies are going public through SPAC mergers, with a combined valuation of $13.1 billion. (Source – miningstore.com)
- In March 2022, the combined hash rate of public Bitcoin mining companies exceeded 30 EH/s. (Source – miningstore.com)
- Bitcoin miners saw their revenue in December 2023 increase by over 200% compared to December 2022, according to reports. (Source – Statista)
- In 2024, it’s estimated that around 900 Bitcoins are mined daily. On average, 144 new blocks are added daily to the blockchain, with a reward of 6.25 Bitcoin per block. (Source – scoop.market.us)
- According to estimates from CBECI, Bitcoin mining consumed 150 terawatt-hours of electricity in one year. (Source – scoop.market.us)
- Bitcoin mining generates 32.8 tonnes of electronic waste annually. (Source – scoop.market.us)
- F2Pool is the world’s largest cryptocurrency mining pool by hash rate. (Source – scoop.market.us)
- In 2022, following China’s ban on crypto mining, Bitcoin mining difficulty dropped significantly from nearly 25 trillion TH/s to 13.6 trillion TH/s. (Source – scoop.market.us)
- Approximately 0.1% of Bitcoin miners control almost 50% of the total mined Bitcoin capacity. (Source – scoop.market.us)
- An NBER study found that the top 10 Bitcoin miners control 90% of the network’s mining capacity. In contrast, just 0.1% of miners—approximately fifty individuals—are responsible for over 50% of the total mining capacity. (Source – scoop.market.us)
- As of April 2024, a Bitcoin miner earns $196,875, which equals 3.125 Bitcoin, for successfully validating a new block on the Bitcoin blockchain. (Source – bankrate.com)
- As of August 2021, mining a single Bitcoin required nine years of household electricity consumption. (Source – bankrate.com)
- Daily mining revenue in 2023 has averaged over $40 million. (Source – miningstore.com)