Cryptocurrency Mining 2024
Every individual strives to explore the fascinating and lucrative world of cryptocurrencies, but due to uncertainty in this direction, many delay this process indefinitely. The question of whether mining will be profitable in the upcoming 2024 remains relevant, as well as which methods of earning on cryptocurrency exchanges will be in demand.
Brief summary of the cryptocurrency mining world for 2023
When analyzing 2023, it can be confidently stated that it was much more successful than 2022 when the lowest hash rate level was recorded. In the first half of the year, miners accumulated around 8684 BTC through fees. In comparison, the same period in 2022 saw this figure at 2325 BTC, with just over 5000 BTC for the entire year.
Thanks to the increase in fees and transaction volume, substantial growth in earnings occurred, making mining much more profitable. The hash rate, or mining performance indicator, also increased rapidly in 2023, starting at 249 EH/s in January and reaching 609 EH/s by the end of the year.
Another significant positive aspect was the substantial rise in the price of Bitcoin. Compensation for the swift increase in the hash rate occurred because the cryptocurrency's value increased by more than 150%.
What miners can expect in 2024?
In the upcoming year, an important event for the crypto community is planned for April – the Bitcoin halving. It occurs approximately once every four years after every 210,000 blocks. According to statistics from 2009, the reward for mining one block decreased by 50 bitcoins. After three reductions, the reward became 6.25 BTC per block by the end of 2020. It is expected that after the upcoming halving in 2024, the reward will further decrease to 3.125 bitcoins. This suggests that solo mining will become half as profitable.
To increase earnings, experienced miners recommend joining so-called mining pools. In these communities, the percentage of rewards depends on the contribution of each participant and specific conditions.
After the next halving, the income of those involved in Bitcoin mining will significantly decrease. To ease this process, companies are developing highly efficient mining equipment. Major manufacturers like Canaan-Creative, MicroBT, and Bitmain have released new ASICs that consume minimal energy.
Software will also become more advanced. Particularly noteworthy are mining setups based on artificial intelligence, leading to a performance increase of up to 260%.
To mine Bitcoin in large quantities, mining companies are investing in new solutions. For example, Marathon Digital acquired over 78,000 highly efficient mining setups. In late 2023, Riot Platforms purchased about 33,000 next-generation Bitcoin miners.
Opportunities for mining various cryptocurrencies
Large miners have the option to improve performance by investing in more expensive and powerful equipment. Therefore, significant players in the mining field can endure the Bitcoin halving more smoothly than solo miners.
However, it is essential to remember that mining is not limited to Bitcoin alone. There are numerous cryptocurrencies that can be actively mined with good software and various algorithms. In the coming year, consider options like:
This is just a selection of cryptocurrencies available for mining, as the list continues to grow with the introduction of more financial assets each year.
What to choose for mining in 2024?
If you wish to mine in the upcoming year, you need to explore the options for this process. Here are the possible mining methods:
- CPU mining;
- GPU mining;
- ASIC mining.
Mining on the CPU is not expected to yield high profits or speed. It is an ideal option for those who want to get closer to the mining process. Good CPU options include Intel Xeon E5-2699V3 Haswell-EP and AMD Ryzen Threadripper 3970X.
Mining on GPUs can be a flexible option, opening up a wide potential for working with various cryptocurrencies. Depending on the market, GPUs can be switched to mine the desired cryptocurrency. Successful GPU options for mining in the upcoming year include AMD RX 6800 XT and NVIDIA RTX 3090 TI.
The most profitable option might be ASIC mining, which is based on integrated circuits. It is essential to remember that ASICs typically work with a specific algorithm, but they provide maximum performance and power. There is a significant variety of ASICs available today, each designed to work with a specific type of cryptocurrency.
In conclusion, the upcoming year of 2024 in the mining industry cannot be considered straightforward. Continuous competition among miners, increasing complexity of coin mining algorithms, and the future reduction in Bitcoin mining will pose challenges. However, those who use advanced equipment for mining will experience minimal income decline.