The broader macro mining environment caused Bitcoin to [BTC] the mining euphoria will come to an abrupt halt in 2022. The reasons vary from regulatory setbacks to ESG concerns and much more. But could this narrative change as BTC miners seem to have found affection towards mining?
Here is AMBCrypto’s Price Prediction for Bitcoin in 2022-23
Fight but have faith
2021 was a banner year for Bitcoin miners. Virtually all mining operations became profitable as the Bitcoin price increased faster than the network hashrate. However, 2022 saw some hiccups given regulatory restrictions especially induced due to its ESG concerns.
However, a recent study showed otherwise. Considering the observed benefits of Bitcoin mining, the industry was still pushing for a more sustainable energy mix.
The Bitcoin Mining Council (BMC), a voluntary global forum of miners, shared some ideas to support this cause in a report. In its Q2 report, BMC reported that the global Bitcoin mining network had a sustainable energy mix (carbon neutral) of 59.5%.
Importance you ask? Well, The BMC consisted of 45 mining companies from five countries that accounted for 50.5% of the Bitcoin network hashrate. Incorporating changes here would make or break the stream, to say the least.
Meanwhile, according to independent analysis by Messari, there was a minimal 10.9% increase in the grid’s sustainable energy mix (BTC) over the past 18 months, suggesting the grid was moving in the right direction. .
Could you improve things? A big yes, but that’s only if the miners incorporated negative carbon energy sources as explained in the graph below.
To back this up, the Bitcoin mining hash rate rose sharply recently to roughly 249 EH/s, a new all-time high. This indicated the fact that miners returned to the network despite the exodus in the past. This added to the aforementioned sustainable causes could lead to a new era for the king coin and its mining operation.
Furthermore, the data showed that public Bitcoin mining companies were aiming to expand their hash rate by around 50% by the end of the year. In this case, the combined hash rate of these miners would reach around 80.7 EH/s by the end of 2022, if the expansions went as planned.
No more mishaps, right?
Maybe not, EXCEPT in low income miner scenarios.
In Q4 2021, miner revenue peaked at $4.8 billion, but has since been declining along with the price of Bitcoin. Quarterly miner revenue in the first and second quarters of 2022 decreased by 28% and 22%, respectively.
In the event that the price of Bitcoin remains range-bound through the end of Q4, quarterly miner revenue is likely to continue the downward trend due to high energy prices.