Public Bitcoin Miners Plan to Increase Hashrate by 50% by End of 2022

According to data, public Bitcoin mining companies plan to grow their hashrate by about 50% by the end of the year.

Public Bitcoin Miners Add 27 EH/s To Hashrate For Remaining Of 2022

According to an Arcane Research post, the combined hashrate of these miners will reach around 80.7 EH/s by the end of 2022 if expansion goes according to plan.

“Hashrate” is a metric that measures the mining power of machines connected to the Bitcoin blockchain.

The total network hashrate therefore represents the total computing power pool currently online on the chain. Below is a graph showing how his 7-day moving average value for this indicator 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 graph above, the Bitcoin mining hashrate has recently surged to an all-time high of around 249 EH/s.

The public BTC mining companies together make up 54 EH/s, suggesting they contribute 22% of the indicator’s overall network value.

The end-year plans of the public miners | Source: Arcane Research

In this post, Arcane Research explains what the trajectory of total hashrate will be in the coming months.

According to them, expansion plans for public BTC miners could be seen as a proxy for industry-wide growth projections.

However, there are several factors that prevent hashrate from reaching its full potential. First, miner earnings are currently under pressure due to the falling Bitcoin price and rising network difficulty.

Rising electricity prices around the world are another factor hindering mining profitability. Some miners find themselves unprofitable due to these two factors and have no choice but to take their hashrate contributions offline.

A third reason why hashrate is not growing as expected is that public miners rarely hit their growth targets. Arcane Research notes that historically there has been a tendency to overestimate the ability to bring mining operations online.

BTC price

At the time of writing, the price of Bitcoin is around $19.5 thousand, up 1% in the last 7 days. Over the past month, cryptocurrencies have gained 1% in value.

The chart below shows the coin’s price trend over the last 5 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