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October 5, 2022
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Slowest Bitcoin Hashrate in 2022 According to Analysts

Year-end 2021 Hashrate reached 174 EH/s, down from the previous estimate of 198 EH/s

The Bitcoin network’s hashrate, or computing power that goes into mining new coins, could reach 327 EH/s by the end of the year, a research note from cryptocurrency-focused financial services firm BitOoda predicted following the cut. of the company an earlier forecast for the year.

BitOoda’s latest forecast represents a massive increase in hash power over last year, but is still lower than a previous forecast by the same company of 334 EH/s, the note revealed, while admitting that the hash power for the The end of the year 2021 has also arrived. below your forecast.

“Year-end 2021 Hashrate came in at 174 EH/s, down from our previous estimate of 198 EH/s. The situation in Kazakhstan puts further pressure on Hashrate. The longer-term site development timelines in North America remain intact,” the report said.

The report stated that the long-term hashrate on the Bitcoin network depends on the market price of bitcoin, also noting that “other restrictions” also apply in the short term. Among these constraints are the availability of capital and mining equipment, price and availability of 240V single-phase power, and “a favorable pricing environment that keeps platforms operational”.

On Monday (24), the 7-day average of the Bitcoin network hashrate was at 189.84 EH/s, data from BitInfoCharts shows.

screenshot 2022 01 26 at 16 38 19 bitcoin hashrate vs mining profitability chart
7-day moving average. Source: bitinfocharts.com

The view that the hashrate will continue to rise this year is also shared by digital asset financial services company CoinShares, which wrote in its Digital Asset Outlook for 2022 all signs are pointing up”barring any large-scale crackdown by jurisdictions hosting large shares of the Bitcoin mining network.”

“If bitcoin prices continue to rise and ASICs (mining hardware) remain available, hashrate growth will likely continue unabated throughout the year.”

The company said, before noting that “an important and sustained correction” in the price of bitcoin is the most likely threat to miners.

No more spending rules

Meanwhile, according to a new Fitch Ratings research paper on Monday, cryptocurrency mining more broadly could pose a risk to the U.S. energy supply.”unless they are sufficiently mitigated”.

“Cryptocurrency mining consumes a lot of energy and requires a considerable amount of energy that can significantly increase a utility’s overall electrical load.”

The company said in its report.

Commenting today on the current state of the bitcoin mining industry to Bloomberg, Matt Schultz, executive chairman of bitcoin mining company CleanSpark, said his company primarily relies on the new Bitmain S19 Pro mining machines, which means its operations are relatively efficient compared to miners who rely on older equipment.

Cited in the same article was Charlie Schumacher, director of communications at bitcoin miner Marathon Digital Holdings, who emphasized that because of the design of the bitcoin network, more efficient miners are able to stay in the game longer.

“We are all competing for the same amount of Bitcoin every day.”

Schumacher said, adding that Marathon would simply earn more coins if other miners closed.

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