The hashrate (hash rate) of the Bitcoin (BTC) network – or the computing power used for mining – could reach 327 PE/s by the end of the year, according to a research note from the service company financial specialists specializing in cryptocurrencies BitOoda.
BitOoda’s latest estimate represents a massive increase in hashing power over last year, but remains below an earlier forecast from the same firm of 334 PE/s, highlighting that the hash rate for the end of the year 2021 also arrived below its forecasts.
“The 2021 year-end hashrate came in at 174 PE/s, below our previous estimate of 198 PE/s. The situation in Kazakhstan is putting additional pressure on the short-term rate. longer term in North America remain intact,” the document said.
It is stated that the long-term hash rate on the Bitcoin network depends on the market price of Bitcoin, also noting that “other constraints” also apply in the short term. Among these constraints are the availability of capital and mining rigs, the price and availability of 240V single-phase power, and “a favorable pricing environment that allows rigs to remain operational.”
As of Monday, the Bitcoin network’s 7-day hashrate average was 189.84 EH/s, according to data from BitInfoCharts.
The opinion that the hashrate will continue to increase this year is also shared by the digital asset financial services company CoinShares, who wrote in his Digital Asset Outlook for 2022 that all signs are pointing up “unless large-scale crackdowns are taken by jurisdictions hosting large parts of the Bitcoin mining network.”
“If Bitcoin prices continue to rise and ASICs (mining hardware) remain available, hashrate growth will likely continue throughout the year,” the firm said, before noting that “a major and lasting correction” in Bitcoin price is the most likely threat to miners.
Meanwhile, according to a new article by Fitch Ratings Cryptocurrency mining more broadly on Monday could pose a risk to the U.S. electricity supply “unless sufficiently mitigated.”
Cryptocurrency mining is energy-intensive and requires “a considerable amount of energy that can significantly increase a utility’s overall electrical load,” the firm said in its report. She adds that a balance must be struck between the prospect of increased electricity sales and the commitment to generate “large amounts of energy” for miners.
Commenting on the current state of the Bitcoin mining industry for Bloomberg, matt schultz, Executive Chairman of the company CleanSpark, said his company mainly relies on machines bitmain Newer S19 Pro which means their operations are relatively efficient compared to miners who rely on older equipment.
“Even at $33,000 per bitcoin, we’re still extremely profitable,” Bloomberg told Bloomberg. Charlie Schultz, which the company mines around 10 BTC per day at a base cost of $5,000-$6,000 per coin.
Quoted in the same article, Charlie Schumacher, director of communication for minors Marathon Digital Holdings, pointed out that due to the design of the network, miners with the most efficient machines are able to stay profitable longer.
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