Public Bitcoin miners plan to increase hash rate by 50% by the end of 2022

The data shows that public Bitcoin mining companies have plans to expand their hash rate 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 a post by Arcane Research, the combined hashrate of these miners will reach around 80.7 EH/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 block chain.

The total hash rate of the network, therefore, means the total pool of computing power currently online on the chain. Here is a chart showing how the 7-day moving average value of 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, the Bitcoin mining hash rate has increased sharply recently to about 249 EH/s, a new all-time high.

The combined public BTC mining companies account for 54 EH/s, suggesting that they contribute 22% of the indicator’s total network value.

Public Bitcoin Miners

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

In the post, Arcane Research discusses how it may track the trajectory of the total hashrate 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 full potential. First, miner revenue is under pressure right now due to the declining price of Bitcoin and the increasing difficulty of the network.

Ever-rising electricity prices around the world are also another factor hampering the profitability of mining. Some miners will surely find their operations unprofitable due to these two factors, leaving them no choice but to turn off their hashrate contribution.

The third reason why the hashrate may not grow as expected is that public miners have rarely reached their growth targets. Arcane Research notes that they have historically tended to overestimate their ability to bring mining operations online.

BTC price

At the time of writing, the price of Bitcoin is hovering around $19,500, up 1% in the last seven days. Over the past month, the crypto has gained 1% in value.

The chart below shows the trend in the price of the coin for the past five days.

Bitcoin price chart

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

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