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The Seventh Edition of the CryptoSuper500 List Shows Record-Setting Economic Value of $42B in the Face of China's Ban on Cypto Mining
Rezul News/10551297
Inspired by the TOP500 list, biannual list of the most powerful cryptocurrency mining pools tracks compute power and economic value
MENLO PARK, Calif. - Rezul -- OrionX Research today released the seventh edition of its CryptoSuper500 list. The list recognizes cryptocurrency mining as a form of supercomputing application, and tracks the top mining pools. Cryptocurrency technologies include blockchains, consensus algorithms, utility and security tokens and the technologies and applications that support them. These include digital wallets, exchanges, non-fungible tokens (NFT), and decentralized finance applications (DeFi). Cryptocurrency mining is a specialized domain of decentralized high performance computing (HPC).
In a new record, the top 41 cryptocurrency mining pools produce at a rate of over $42 billion per year of Bitcoin, Ethereum, and Dogecoin.
With the Seventh CryptoSuper500 List, both Bitcoin and Ethereum have achieved a production level of $20 billion per year (annual economic value). Bitcoin has reached a market cap of $1.2 trillion and Ethereum is approaching $0.6 trillion. Together they are responsible for over 60% of all cryptocurrency market capitalization.
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In a world of 13,000 current cryptocurrencies with nearly $3 trillion market cap, only 22 coins have market caps over $10 billion. Most others will struggle to break away and are expected to be niche players or nearly worthless in the long run.
Cryptocurrency Supercomputing refers to large-scale cryptocurrency mining operations which are typically powered by accelerator technologies such as GPUs, FPGAs, or custom ASICs. Bitcoin is the most notable of such currencies.
Only the coins using the Proof of Work (PoW) consensus algorithm use significant supercomputer class resources in order to provide the most security, ensuring scarcity and contributing to persistent, increasing, value. Of the top coins, only 6 are high performance computing (HPC) based coins using the Proof-of-Work (PoW) consenus algorithm, and only 3 made the cut for this list.
"The annual economic value of cryptocurrency mining has grown at a compounded annual growth rate of 97% since we tabulated our first CryptoSuper list three years ago," said Dr. Stephen Perrenod, OrionX Partner and Analyst and the developer of the CryptoSuper500. ""Despite the Chinese ban on bitcoin mining enforced in June of this year, the total global mining hash rate recovered to prior levels in a matter of months."
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Bitcoin's electricity consumption is estimated to be approximately 0.5% of the global electricity use according to the University of Cambridge's Centre for Alternative Finance. Unlike most electricity, it is used for production, not consumption; Bitcoin is energy securely encapsulated as information, as long-term value in the Internet.
US cryptocurrency mining is attracting significant investment capital and is increasingly seeking green electricity sources such as wind power or stranded natural gas that is often flared into the atmosphere.
"Trends to watch include more energy-efficient mining hardware and increasingly green electricity input, the new dominance of the American crypto-mining industry, and the end of Ethereum proof-of-work mining, now expected in the first half of 2022," said Dr. Perrenod.
The full list with additional explanation is available at OrionX.net/research.
About OrionX
OrionX is a Silicon Valley consulting firm offering Technology Research, Market Execution, and Customer Engagement services to high tech companies. More than 70 financial institutions and technology leaders in virtually every technology segment have trusted OrionX to provide advice, help set new break-away strategies, ignite brands, and grow market share. Visit us at OrionX.net.
* Note: This effort is an analysis of the technologies and trends surrounding blockchain and cryptocurrencies. It is not, and must not be considered as, financial, investment, or legal advice.
In a new record, the top 41 cryptocurrency mining pools produce at a rate of over $42 billion per year of Bitcoin, Ethereum, and Dogecoin.
With the Seventh CryptoSuper500 List, both Bitcoin and Ethereum have achieved a production level of $20 billion per year (annual economic value). Bitcoin has reached a market cap of $1.2 trillion and Ethereum is approaching $0.6 trillion. Together they are responsible for over 60% of all cryptocurrency market capitalization.
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In a world of 13,000 current cryptocurrencies with nearly $3 trillion market cap, only 22 coins have market caps over $10 billion. Most others will struggle to break away and are expected to be niche players or nearly worthless in the long run.
Cryptocurrency Supercomputing refers to large-scale cryptocurrency mining operations which are typically powered by accelerator technologies such as GPUs, FPGAs, or custom ASICs. Bitcoin is the most notable of such currencies.
Only the coins using the Proof of Work (PoW) consensus algorithm use significant supercomputer class resources in order to provide the most security, ensuring scarcity and contributing to persistent, increasing, value. Of the top coins, only 6 are high performance computing (HPC) based coins using the Proof-of-Work (PoW) consenus algorithm, and only 3 made the cut for this list.
"The annual economic value of cryptocurrency mining has grown at a compounded annual growth rate of 97% since we tabulated our first CryptoSuper list three years ago," said Dr. Stephen Perrenod, OrionX Partner and Analyst and the developer of the CryptoSuper500. ""Despite the Chinese ban on bitcoin mining enforced in June of this year, the total global mining hash rate recovered to prior levels in a matter of months."
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- Keyanb Exchange Implements Enhanced Security Protocols Amid Industry-Wide Trust Challenges
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Bitcoin's electricity consumption is estimated to be approximately 0.5% of the global electricity use according to the University of Cambridge's Centre for Alternative Finance. Unlike most electricity, it is used for production, not consumption; Bitcoin is energy securely encapsulated as information, as long-term value in the Internet.
US cryptocurrency mining is attracting significant investment capital and is increasingly seeking green electricity sources such as wind power or stranded natural gas that is often flared into the atmosphere.
"Trends to watch include more energy-efficient mining hardware and increasingly green electricity input, the new dominance of the American crypto-mining industry, and the end of Ethereum proof-of-work mining, now expected in the first half of 2022," said Dr. Perrenod.
The full list with additional explanation is available at OrionX.net/research.
About OrionX
OrionX is a Silicon Valley consulting firm offering Technology Research, Market Execution, and Customer Engagement services to high tech companies. More than 70 financial institutions and technology leaders in virtually every technology segment have trusted OrionX to provide advice, help set new break-away strategies, ignite brands, and grow market share. Visit us at OrionX.net.
* Note: This effort is an analysis of the technologies and trends surrounding blockchain and cryptocurrencies. It is not, and must not be considered as, financial, investment, or legal advice.
Source: OrionX.net
Filed Under: Financial
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