Public Bitcoin miners plan to increase hashrate 50% by the end of 2022
Data shows that public Bitcoin mining companies have plans to expand the hashrate by around 50% by the end of the year,
Public Bitcoin miners will add 27 EH/s to the hashrate in the remainder of 2022
According to a post by Arcane Research, the combined hash rate of these miners will reach around 80.7 EH/s by the end of 2022, if the expansions go according to plan.
“Hashrate” is an indicator that measures the mining ability of any machine connected to the Bitcoin blockchain.
The total network hash rate therefore means the total computing power pool currently online in the chain. Here’s a chart showing how the 7-day moving average for this metric has changed over the past year:
The 7-day MA value of the metric seems to have shot up in recent days | Source: Arcane Research
As you can see in the graph above, the Bitcoin mining hash rate has risen sharply recently to around 249 EH/s, a new all-time high.
The public BTC miners together amount to 54 EH/s, which suggests that they contribute 22% of the total network value of the indicator.
The end-year plans of the public miners | Source: Arcane Research
In the post, Arcane Research discusses how the trajectory of the overall hashrate may follow in the coming months.
According to them, the expansion plans of the public BTC miners can be considered a proxy for the entire industry’s growth expectations.
However, there are several factors at play that prevent the hash rate from growing to its full potential. First, the income of miners is under stress right now due to the falling Bitcoin price and increasing network difficulty.
The ever-increasing electricity prices around the world also constitute another factor that hinders the profitability of mining operations. Some miners will surely find their business unprofitable due to these two factors, which would leave them with no choice but to take their hashrate contribution offline.
The third reason why the hashrate may not grow as expected is that the public miners have rarely met their growth targets. Arcane Research notes that they have historically tended to overestimate their ability to get mining online.
BTC price
At the time of writing, Bitcoin’s price is hovering around $19.5k, up 1% in the last seven days. Over the past month, the crypto has increased 1% in value.
The chart below shows the trend in the price of the coin over the last five days.
The BTC value has plunged down over the past couple of days or so | Source: BTCUSD on TradingView
Featured image from QuinceCreative on Pixabay.com, charts from TradingView.com, Arcane Research
