Data shows that public Bitcoin mining companies have plans to expand their hashrate by around 50% by the end of the year.
Public Bitcoin Miners Will Add 27 EH/s to Their Hashrate in Remaining Part of 2022
According to a post by Arcane Research, the combined hashrate of these miners will reach around 80.7 EH/sa by the end of 2022, if expansions go as planned.
The “hashrate” is an indicator that measures the mining capacity of any machine connected to the Bitcoin blockchain.
The total percentage of the network therefore means the pool of total computing power currently online on the chain. Here’s a chart showing how the 7-day moving average for 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 from the chart above, Bitcoin mining hashrate has recently risen sharply to around 249 EH/s, a new all-time high.
Public BTC mining companies together 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 total hashrate may follow in the coming months.
According to them, the expansion plans of public BTC miners can be considered as an indicator of the growth expectations of the entire industry.
However, there are several factors at play that will not allow the hashrate to grow to its maximum. First, miners’ income is under stress right now due to the declining price of Bitcoin and the increasing difficulty of the network.
The ever-increasing electricity prices worldwide are also another factor that hinders the profitability of mining. Some miners are bound to find their operations 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 public miners have rarely met their growth targets. Arcane Research notes that they have historically tended to overestimate their ability to mine online.
BTC Price
At the time of writing, the price of Bitcoin is hovering around $19.5k, up 1% in the last seven days. Over the past month, the crypto has gained 1% in value.
The chart below shows the coin’s price trend 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
