- Some crypto experts and Bitcoin miners expect the hashrate to grow significantly in 2022, despite the relatively low current prices.
- This year, he anticipates a good mining margin for his firm, says CEO Peter Wall, Argo Blockchain.
- January 2022 witnessed a notable high hashrate of the BTC network.
The first and the leading cryptocurrency, Bitcoin, has become a point of focus for most crypto enthusiasts as its prices took a downturn this month. The digital currency witnessed six months low when it fell below $40,000 for the first time in months. And it last hit its All-Time High in November last year.
Although a few crypto experts panicked when the bearish turn took place, some said that the Bitcoin network has emerged to be verifiably stronger than before. Because the BTC hash rate figures are going contrary to its prices. On January 22, the BTC network recently witnessed an All-Time High of 26.643 trillion and an average hash rate of 190.71 exahash per second.
Crypto enthusiasts on the growth of BTC Hashrate:
In the crypto industry, hashrate refers to the amount of processing power of the Bitcoin network. And if the Hashrate is higher, it symbolises a good hashrate. And even when the BTC prices are comparatively down, the high hashrate is a significant figure.
According to CEO Peter Wall, crypto mining firm Argo Blockchain, the firm’s mining margin last year was over 80%. It was quite a year for the miners. And that their margin was 41% in 2020 when the Bitcoin prices were much lower. And he anticipates this year to have a good and robust margin despite the low BTC prices and an increase in the hash rate.
Darin Feinstein, the co-founder and chairman of Core Scientific, a provider of publicly-traded blockchain infrastructure, highlighted that even though BTC has hit its ATH with regard to exahash, it’s due to significant developments in miner chip technology and geographical distribution away from China which recently banned cryptocurrencies and its mining. The network is stronger and more efficient than ever before.
The CEO and co-founder chairman of Core Scientific, Michael Levitt, anticipates the global BTC hashrate to grow aggressively. Although he further says that the growth depends on the success of infrastructure and he sees infrastructure as a significant challenge in Bitcoin mining.
According to data, North America has emerged as a mining hub, which also shows that 35% of avg. monthly hashrate is from the United States, and 10% is from Canada. The mining of cryptocurrencies in different regions highly depends on the crypto-friendly regulations and cost of power.
This year, the mining industry might witness a trend of going public. Levitt highlights that Bitcoin miners going public have benefits like having better access to capital.
It will be interesting to notice whether the global hashrate grows aggressively or not, as currently, the BTC prices are witnessing a downturn compared to its ATH.
