Data shows that public Bitcoin mining companies plan to increase their hashrate by around 50% by the end of the year,
Public Bitcoin miners will add 27 EH/s to their hash rate in the remaining part of 2022
According to an article by Arcane Research, the combined hashrate of these miners will reach around 80.7 PE/s by the end of 2022, if the expansions go as planned.
The “hashrate” is an indicator that measures the mining capacity of any machine connected to the Bitcoin blockchain.
The total network hashrate therefore means the total computing power pool currently online on the chain. Here’s a chart that shows how the 7-day moving average value of this statistic 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’s mining hashrate has risen sharply recently to around 249 PE/s, a new all-time high.
Public BTC mining companies together account for 54 PE/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 explains how the trajectory of the total hashrate could follow in the coming months.
According to them, the expansion plans of public BTC miners can be seen as an indicator of the growth expectations of the whole industry.
However, several factors at play will not allow the hashrate to grow to its full potential. First, miners’ earnings are currently under pressure due to the falling price of Bitcoin and the increasing difficulty of the network.
The constant rise in electricity prices around the world is also another factor that hinders the profitability of mining. Some miners will see their operations become unprofitable due to these two factors, leaving them with no choice but to take their hashrate contribution offline.
The third reason the hashrate may not grow as expected is that public miners have rarely met their growth goals. Arcane Research notes that they have historically tended to overestimate their ability to bring mining operations online.
At the time of writing, the price of Bitcoin is hovering around $19.5,000, up 1% in the past seven days. Over the past month, the crypto has gained 1% in value.
The chart below shows the price trend of the coin over the past 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