January 17, 2022, 12:10PM EST
• 15 min read
Mapping out the crypto mining ecosystem
- The steadfast and still-growing crypto mining ecosystem can be broken down into many verticals, but most important are its mining pools, manufacturers, and lenders.
- A few requirements must be met when becoming a Bitcoin or PoW miner, such as obtaining hardware (GPU or ASIC), mining software, a wallet, and a mining pool if they do not plan to solo mine.
- The mining ecosystem was previously centered in China but due to recent regulatory crackdowns in 2021, the space saw a substantial departure of key players such as mining data centers, manufacturers, and operators from China over to countries like Kazakhstan, the United States, and Canada.
- The mining power required to mine Bitcoin can be derived from renewable energy supplies like wind, solar, and hydroelectric.
- The Block has identified 110 crypto-mining companies across 11 verticals.