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Given the overall growth in the crypto market, crypto mining is also a significant sector that takes consideration while investing in the space
A simple advice a good investor follows is not to get distracted or distressed looking at the falls and rises in the industry. Fluctuations and volatility are the nature of any market; in case of crypto it becomes more relatable. Yet in the long term, chances of growth are much higher than completely vanishing off of any market. Many reports have also stated the growth of the crypto market in upcoming times that keeps hopes and anticipations of investors high.
Take for instance the report published by Research and Markets about the Cryptocurrency Market 2022, which stated that the global crypto market cap that is valued at $1.78 trillion in 2021 is anticipated to show much higher growth. The projection regarding the market growth in the report shows that it will grow by a CAGR of 58.4% between 2021 to 2027. By the end of the year 2027, the overall market cap is expected to reach about staggering $32.42 trillion.
Such reports and projections keep the hopes of investors high about the crypto market and also attract new investors. In that case, direct investment in cryptocurrencies or in crypto related firms becomes an individual choice. Here if someone thinks crypto mining firms to be an element for investment, then Canaan and Hut 8 Mining surely had crossed the mind. Crypto mining is quite obvious to increase given the popularity and use cases of cryptocurrencies itself, and eventually the growth would reflect on crypto mining firms as well. Canaan and Hut 8 Mining are among the prominent crypto mining firms in the space.
In the past several years, the bitcoin mining sector has seen drastic changes. Given this, bitcoin mining companies like Canaan, while molding itself as per industry demands, design high powered and application specific integrated circuits or ASIC machines. For instance, the next generation Avalon ASICs of Canaan can make guesses about tens of trillion every second to validate blocks on the network. Considering its affordability, relatively low consumption of energy and high power operational capacity, its sales have been skyrocketing.
One such miner in the mining space of Hut 8 Mining, yet another most popular name when it comes to bitcoin mining stocks. The Canada based company is known for its different approach, for instance it generates strong cash flow compared to its revenue, while commanding a significant minority stake in the Bitcoin network. Moreover, unlike other bitcoin miners Hut 8 Mining does not sell its bitcoins in the market, instead they lend them and generate yields that lead to compound returns. It’s also counted under some companies focused on environmental concerns as it uses wind, solar and natural gas energy resources to generate electricity for its use.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
