Data shows that the public bitcoin mining companies have plans to increase their hashrate by around 50% by the end of the year,
Public bitcoin miners will increase their hashrate by 27 EH/s in the rest of 2022
According to a post by Arcane Research, the combined hashrate 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 denotes the total pool of computing power currently online in the chain. Here’s a chart showing how the 7-day moving average 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 chart above, bitcoin mining hashrate has surged recently to around 249 EH/s, a new all-time high.
The public BTC miners collectively account for 54 EH/s, suggesting that they contribute 22% of the indicator’s total network value.
The end-year plans of the public miners | Source: Arcane Research
In the post, Arcane Research discusses how the trajectory of the entire hashrate could go in the coming months.
According to them, the expansion plans of the public BTC miners can be taken as an indicator of the growth expectations of the entire industry.
However, there are several factors at play that prevent the hashrate from reaching its full potential. Firstly, miner revenue is currently under pressure due to the declining bitcoin price and rising network difficulties.
Ever-rising electricity prices around the globe are another factor hampering mining profitability. Some miners will inevitably 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 the hashrate may not be growing as expected is that public miners have rarely met their growth targets. Arcane Research notes that in the past they have tended to overstate their ability to bring mining operations online.
BTC price
At the time of writing, the price of Bitcoin is hovering around $19.5k, up 1% over the past seven days. Over the past month, the crypto has gained 1% in value.
The chart below shows the evolution of the coin’s price 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
