Data shows the public Bitcoin mining companies have plans to expand their hashrate by around 50% by the end of the year,
Public Bitcoin Miners To Add 27 EH/s To Their Hashrate In Remaining Part Of 2022
As per a post from Arcane Research, the combined hashrate of these miners will reach around 80.7 EH/s by the end of 2022, if expansions go according to plan.
The “hashrate” is an indicator that measures the mining ability of any machine connected to the Bitcoin blockchain.
The total network hashrate, therefore, signifies the total computing power pool currently online on the chain. Here is a chart that shows how the 7-day moving average value of 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 above graph, the Bitcoin mining hashrate has sharply surged up recently to about 249 EH/s, a new all-time high.
The public BTC mining companies combined make up for 54 EH/s, suggesting that they contribute to 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 total hashrate may follow in the coming months.
According to them, the expansion plans of the public BTC miners may be considered as a proxy for the entire industry’s growth expectations.
However, there are several factors at play that won’t allow the hashrate to grow to its full potential. First, miner revenues are under stress right now due to the declining Bitcoin price and the rising network difficulty.
The ever-rising electricity prices around the globe also make up another factor that hinders mining profitability. Some miners are bound to find their operations becoming 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 ever hit their growth targets. Arcane Research notes that they have historically tended to overestimate their ability to get mining operations online.
At the time of writing, Bitcoin’s price floats around $19.5k, up 1% in the last seven days. Over the past month, the crypto has gained 1% in value.
The below chart 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