Intelligent CIO Middle East Issue 103 | Page 52

FEATURE : BITCOIN MINING
The Middle East is now the fastest-growing cryptocurrency market globally , with a 9.2 % share of global transactions from 2021 to 2022 . This rapid growth is underscored by a 300 % rise in blockchain-related educational initiatives and an 8 % contribution to global mining hash rates , illustrating the region ’ s dedication to leading in blockchain innovation and education .
With its rich solar energy resources and increasing engagement with blockchain technologies , the Middle East is becoming a hub for blockchain innovation and renewable energy development . This synergy is creating optimal conditions for Bitcoin mining operations and opening avenues for sustainable growth and technological advancement in the region .
Miners
portable Avalon Nano , Canaan delivers Bitcoin mining service for both institutional and individual clients .
Advancements in ASIC technology continue to increase mining efficiency , reducing energy consumption per hash , and driving down operational costs . The only thing not to forget is that it is always necessary to use modern and reliable equipment to remain competitive in the market .
Market overview
Bitcoin mining sector is highly competitive . Mining operations are concentrated in regions with cheap electricity to maximise profitability . Large-scale mining operations , are often located in areas with renewable energy sources . Talking about mining rig providers , the market is relatively concentrated .
After the fourth halving in April this year , it is expected that the Bitcoin price will go through ups and downs and we hope it will hit the historical peak eventually . Historically , after each halving , the price of Bitcoin has risen . Miners will have to increase power and energy consumption to mine the same amount of Bitcoin and strive to reduce costs to maintain profitability .
The growth of the leading cryptocurrency compensates for the reduction in mining income and , most likely , will result in increased profitability . The Bitcoin mining market is large enough to support the sustainable development of the mining machine market .
The UAE and the wider Middle East have experienced exponential growth in the cryptocurrency sector , demonstrated by a 400 % increase in registered crypto businesses from 2020 to 2022 . This surge has positioned the region to capture 10 % of global digital asset trading volume , establishing it as a significant player in the global cryptocurrency market .
Before , people are using CPU or GPU chips to do Bitcoin mining , but since 2013 ASIC mining machines are predominantly used . Canaan released the Avalon A1 in 2013 , the world ’ s first ASIC-powered miner , significantly outperforming earlier FPGA units in hash rate and energy efficiency . In addition , Canaan has recently launched its next generation Avalon A15 miner series , boasting cutting-edge chips that promise enhanced energy efficiency .
The ASIC mining machine requires high levels of computing power , energy efficiency , and cooling capabilities to operate effectively and remain competitive in the mining landscape .
In the future , different from traditional miners who pursue high financial returns , the new funds aims to pursue more sustainable , stable , long-term , reliable , and efficient Bitcoin mining investment . They will need new mining rigs with high ROI as well as mature solutions to deploy mining more easily . This puts forward certain requirements and challenges for the transformation of the business model of mining machine manufacturers .
Mining
Whether mining machine manufacturers can provide integrated solutions and have advantages in terms of chip design and supply , mining machine production ,
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