If you own hardware capable of mining Bitcoin, the next natural step is to join a mining pool to start earning your rewards. This article is going to reveal the biggest cryptocurrency mining company in business today as well as others worth mentioning.
- What is the importance of a Cryptocurrency Mining Company?
- Cryptocurrency mining companies vs Cloud mining pools
- What to look out for when choosing a cryptocurrency mining company
- Here are the Top 7 Biggest Cryptocurrency Mining Companies in 2019
- Biggest cryptocurrency miners in terms of countries
What is the importance of a Cryptocurrency Mining Company?
Most Bitcoin users and owners do not mine, nonetheless, miners play a crucial role in the whole ecosystem. For instance, miners are critical to Bitcoin’s security structure and without them, the system would be vulnerable and easy to infiltrate.
Mining was once carried out on an average home computer by enthusiasts. Today, it is mostly done in large, state-of-the-art warehouses with tremendous amounts of mining hardware and power. Normally, these companies concentrate their hashing power in mining pools.
What is Mining Pools?
Mining pools are a group of miners who cooperate to share rewards based on the mining hash power each one contributes. These pools are popular with the average miner since they even out results and make them easier to predict. Nonetheless, they concentrate all the power to the owner of the pool. That being said, miners can always decide to redirect their hashing power to another mining company whenever they feel like.
Cryptocurrency mining companies vs Cloud mining pools
A lot of people confuse mining pools with cloud mining companies. Mining pools are for those who own crypto mining hardware to split profits. On the other hand, cloud mining is where an individual pays a provider to do the mining on their behalf for a portion of the profits.
What to look out for when choosing a cryptocurrency mining company
Before settling on a certain mining pool, there are a few things that you must look out for. Some pools are easier to use than others, others only work in foreign countries and not all offer dependable support services.
Here are some brief hints to point you in the right direction:
Stability and reputation of a cryptocurrency mining pool
Before opting for a mining pool, make sure that it is stable and trusted by experienced users in the industry. The most trusted mining pools have a consistent uptime, come with a simple payment structure and a strong community base.
Rewards and payment models:
Different cryptocurrency mining companies have different models for sharing rewards and payments. The most common structures include Pay Per Share (PPS) that pay miners a fixed amount per share, Score based models reward miners based on an assigned score while Proportional models payout based on the amounts of shares contributed to the pool.
Ease and frequency of withdrawal:
Different crypto mining pools employ different methods for withdrawing mined assets. Some mining firms send the coins directly to a predetermined address while some allow users to withdraw the funds manually to a wallet they control.
Some pools do not charge any fees for operating on their platform while some charge small fees. Normally, the fees are deducted from the coins mined by the users before the remaining amount is sent to the destination address.
Here are the Top 7 Biggest Cryptocurrency Mining Companies in 2019
BTC.com forms one of the largest Bitcoin mining companies, with about 13.8% hash rate of the whole block. It is owned by Bitmain and was founded in 2015 by the creator of AntPool. The pool runs on VarDiff and stratum mining protocol.
Besides Bitcoin, BTC.com supports the mining of Ethereum and Bitcoin Cash. The site provides both mobile and desktop wallets in addition to a block explorer and API.
Nonetheless, BTC.com is more famous for its mining services which are managed by Bitmain Technologies Ltd after its acquisition in 2016. This cryptocurrency mining company stands out for being transparent. The platform utilizes a PPS model, charging a 1.5% transaction fee after they have split the costs with its miners.
To protect against DDoS attacks, the site uses Cloudflare which protects against the loss of profits and hash power.
- BTC.com maintains high transparency
- Good support
- High security
- Global operation
- Payouts depend on the Bitcoin network and may take some time
F2Pool forms one of the biggest cryptocurrency companies based in China but with servers in Hong Kong and the US as well. Currently, it represents about a 13.8% hash rate in all blocks in the Bitcoin network, making it the second-largest cryptocurrency mining company. F2Pool was launched in 2013 and is commonly known as the DiscusFish mining pool in the crypto mining world. Besides Bitcoin, users can also mine other popular cryptocurrencies, including Ethereum, Litecoin, DASH, Monero, Zcash among others.
F2Pool runs on VarDiff and stratum mining protocols and comes with an English-based user-friendly interface that is easy to understand. Payouts are carried out once a day at midnight (UTC) on a payment per share model of negative 4%. As of writing, the threshold for Bitcoin payments was 0.005 Bitcoins.
Signing up on F2Pool is quite rigorous since they need users to verify their identity via text message besides filling a Captcha.
- Allows users to mine a wider range of cryptocurrencies
- Offers regular payouts
- Low payout threshold
- Expensive fees – an average of 4%
AntPool is another huge cryptocurrency mining company owned by Bitmain Technologies Ltd., a Chinese based company. Bitmain is the largest manufacturer of Bitcoin-mining hardware and a majority of their pool consists of their own mining equipment. Therefore, it comes as no surprise that AntPool’s business model is more focused on mining hardware sales.
AntPool became operational in 2014 and now controls around 15% in terms of the total hash rate of all Bitcoin companies. It runs on stratum mining and p2pool modes with nodes scattered throughout the world to guarantee stability.
- Trusted cryptocurrency mining company
- Supports a wide variety of coins
- Easy to use interface;
- Provide PPLNS and PPS reward options
- Hidden transaction fees
- Controlled by a centralized company
ViaBTC is a relatively new cryptocurrency mining pool that is also based in China. Like most big cryptocurrency pools, ViaBTC also offers block explorer and wallet services to its customers. As of writing, ViaBTC was mining about 7.4% of all blocks.
Besides Bitcoin, this site allows the user to mine other popular coins, including: Litecoin, Ethereum, BitcoinCash, Bitcoin SV, Monero, etc. It runs a PPS* model less 4% fee and PPLNS with 2% fee payment protocols. ViaBTC offers a minimum payout of 0.0001 BTC. The platform follows the VarDiff and stratum mining protocol that provides an excellent monitoring system. They also offer other great features such as merge mining and staking services which allow users to earn a passive return on the PoS currencies.
- Additional coins supported
- Daily payouts
- High fees – 4% fees for PPS and 2% for PPLNS
5. Slush Pool
Slush holds the title for being the first cryptocurrency mining company, launched in the year 2010. It is run by Satoshi Labs, a tech company based in the Czech Republic. Currently, the company controls about 5.1% of all blocks in the Bitcoin network. Though not the biggest cryptocurrency company out there, Slush is wildly popular.
Satoshi Labs are credited for building the first offline Bitcoin wallet and the first Bitcoin-focused world map. Furthermore, Satoshi Labs created the popular stratum mining protocol which has been widely adopted by the other cryptocurrency mining companies.
One of the reasons for Slush’s popularity is its Score based protocol which prevents the risks of being shortchanged by other miners who may decide to shift pools within a round. In the Score method, new shares are given higher prominence than older ones at the beginning of the round.
Slush provides a demo account for new users to get acquainted with the site. They also provide a lot of useful resources such as graphs, news, social media updates, etc.
- Well-established mining pool
- Score-based reward model prevents pool-hopping
- High transaction fees
BTC.Top is yet another large cryptocurrency mining company based in China considering that it was founded only in 2017. This mining pool is private, meaning that ordinary miners cannot become a part of their operations. They currently mine about 4% of all Bitcoin blocks.
Unlike other pools that have translated versions of their services in English, BTC.Top operates fully in Chinese, veiling their activities from Western miners.
- Well-established pool
- Not a lot of information on the pool
- Chinese-only website
- Private pool (closed to ordinary members)
According to online sources, Bitfury mines about 2.8% of all blocks, making it among the biggest cryptocurrency mining companies in the world. Founded in 2011, the company takes credit for creating some of the first ASICs. By 2014, Bitfury had grown so large to control more than 51% of the Bitcoin network, forcing the company to get rid of some of its control from the pool.
Nevertheless, Bitfury is a private pool, meaning that no one can join it. The company manages its own pool and manufactures their own cryptocurrency mining hardware.
- Charges 0 fees
- Lacks stability
Biggest cryptocurrency miners in terms of countries
Mining Bitcoin takes huge amounts of electricity. As a result, mining tends to be more prolific in countries with cheap electricity. Right now, Bitcoin mining is rather centralized with 10-14 mining companies controlling most of the market.
Note that right now, one of Bitcoin’s biggest challenges is that most pools are based in China. Out of the main mining pools, Chinese mining companies control about 81% of the network hash rate. Furthermore, most of these companies run Chinese websites and support only. Other countries with notable mining control include:
- Czech Republic – 10%
- Iceland – 2%
- Japan – 2%
- Georgia – 2%
- Russia – 1%
Below is a brief description of the biggest cryptocurrency mining pools based on information collected from various online sources.
We hope you’ve found this article to be of value to you, now if you start mining and want to start trading your coins you should look for a good crypto exchange to do so.