The cryptocurrency market is still very volatile, and data from various crypto sector analysts produce a surplus of conflicting news which is difficult for investors to decipher. Cryptocurrency investors give preference to different directions of the industry, and it is difficult to determine which of them will bring maximum profit with minimal upfront costs.
Recently, analysts from Ethereum Express, a specialized platform for the multi-thousand-strong community of blockchain enthusiasts, named two crypto trends that they believe will be on top to attract users and raise more funding than other competitors in the crypto market. Data from the study shows that online gambling and mining will take a leading position in the cryptocurrency market in 2020.
Research from the blockchain analytics firm found that the share of users in the online gambling industry increased exponentially until 2019 and has tripled over the past 10 years, with profits rising from $20 billion to $60 billion over this time. Despite the growth slowing down slightly, the logarithmic chart predicts that by 2025 online gambling will exceed $100 billion in revenue.
These forecasts are also backed up by data from the research firm, Grand View Research, which found that the online gambling market capitalization will reach $103 billion by 2025.
Fig.1 - Online gambling market forecast
Clearly, the growth of the gambling industry is quite stable and less dependent on fluctuations in the crypto market, which begs the question: How will mining become profitable in 2020?
Everyone understands that money can't be earned quickly when it comes to mining — in any case, recouping costs will take at least 3 to 6 months, and these are this occurs in the best cases when the value of cryptocurrency rose parabolically. In addition to time, there are some hard-to-reach resources needed to conquer mining — starting from cheap electricity, technical expertise, and expensive equipment.
The drop in the popularity of mining might seem reasonable, since running 15-20 powerful rigs no longer produces enough BTC to justify all the labor involved. Furthermore, the risk to reward and return on investment for a large number of other cryptocurrencies is also in great doubt.
When asked about the current mining situation and the associated challenges, Vlad Miller, Ethereum Express founder said:
"Even though the mining industry is investment-attractive and plays an important role in maintaining the health of blockchains, there are still several barriers in this area that cause inconveniences for most ordinary users. However, mining will regain its leading position in the cryptocurrency industry since the main benefit of mining is the ability to eliminate the monopoly on data by corporations who own massive data processing facilities."
The researchers also found that the global crypto mining market is growing at a compound annual growth rate of 29.9 percent. The market was valued at $611 million in 2016, $8.9 billion in 2019 and is expected to reach $11.56 billion in 2020, followed by $42.76 billion in 2025.
Recently, China’s government changed its attitude toward mining in a positive way by excluding crypto mining from the list of undesirable activities. Despite this, there are still several challenges that miners will face regardless of what power they have. In order to become the flagship of the industry, miners need Bitcoin price to rise significantly.
Popular crypto-analyst PlanB has predicted that Bitcoin’s price could rise to $55,000 per coin and register a $1 trillion market capitalization after the 2020 Bitcoin halving event. Ultimately, the use case of cryptocurrency, (Bitcoin especially) needs to better address some of the issues that the current financial structure does not effectively address. Blockchain networks also need to address the challenges of standardization, financial limitations, crypto-malware, high cryptocurrency volatility, and consensus issues.
Fig.2 - Issues that should be considered and solved by the next generation platform
Based on the study results, Ethereum Express has created the solution to the problem by developing a protocol that helps people generate profit without additional investments or the need to master software with a steep learning curve. Analysts believe that mining and online gambling will be greatly assisted by their proof-of-authority-backed decentralized autonomous platform and its integration into many large companies. Already, Mining Express, a massive mining conglomerate and a top-25 Ethereum mining pool running the largest mining farm in Europe and the 5th largest mining company in the world has developed a strong Altcoins Mining Business Model.