According to new reports, 2020 will see more altcoin mining and pools starting to integrate more of this activity, indicating a huge market potential and risks. The research was carried out by the token data and rating agency TokenInsight.
In the full report which analyzed statistics based on the altcoin news in 2019, we can see that there are only 64 mineable coins including Bitcoin (BTC) with more than $100,000 as its trading volume in 24 hours. The ones with BTC account for 82% of the total crypto market capitalization.
We can also see that more altcoin mining and staking is entering the “main” stage and are the two activities which will get more market attention and an increasing number of mining pools will start to integrate them. They would want to differentiate their services, diversify their revenue streams and compete with other mining pools.
Also, as the industry faces the issues of transparency and supervision, we can see that major mining pools are actively building brand credibility and it is very likely that the future will bring inspection and reporting in cooperation with independent third parties as well as decentralized mining pool protocol.
This year, we might also see more altcoin mining and cloud mining products which are launched and targeting the broader market. Still, the future of cloud mining markets is outside of China – particularly in Russia – according to the reports. TokenInsight found that the number of users interested and already doing cloud mining in Russia is “staggering” and the country’s development in BTC mining will also increase in 2020 with the ease of policies on crypto.
According to the researchers, more altcoin mining is on the horizon as well as cloud mining. The report found that nine platforms share more than 80% of the cloud mining industry on the market, while most of the products are currently unprofitable.
If we take the Bitcoin mining reward halving in May into account, the report shows that “most of the cloud mining products on the market are not worth investing in.” Additionally, when the block reward is halved, the Bitcoin news are expected to show increases in the BTC price and a reduction of the computing power of the entire network.
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