In 2022, you will continue a wide ride for crypto mining. Despite an ongoing global chip shortage, the capacity of new mining machines has skyrocketed worldwide. The U.S. and Canada have become the uncontested hashrate capitals as soon as China left the crypto market. More and more investors become interested in getting returns from miner hosting. All those things opened new opportunities for Bitcoin hosting services.
The digital asset mining industry isn’t risky and uncertain anymore. We have compiled a list of the most notable trends.
The hashrate is an important metric of technological resources used to proceed with mining activities and secure the Bitcoin blockchain. The popular belief that the hashrate for the Bitcoin network is going to increase seems to be true. According to some estimates, the crypto project will reach a double price as more miners join the network.
Will the hashrate reach the range of 300-350 exahash/second (EH/s)? We can’t know it for sure. But the representatives of the major mining companies like Bitfarms and Bekbau of Xive are pretty sure about their predictions.
Some experts say that the situation isn’t so clear. Miners in Kazakhstan will need to solve power rationing problems. The build-out of new crypto mining operations in the U.S. will take some time. Chinese authorities will put the crypto market into even tighter frames. These things put the trend of Hashrate in doubt.
Rise in M&A
Even though the competition of hashrate war seems to be over, it has both conquerors and failures. Larger companies will likely strengthen their market position by gobbling up smaller miners. Marathon, the top bitcoin miner, is planning to invest almost $700 million into aggressive growth. Acquiring smaller miners and investing in the hashrate have become two possible scenarios.
Apart from Marathon, many more bitcoin hosting services and miners will take the same path for winning more players while investing with the hashtag. In the Asian market, traditional companies are free to enter the mining domain successfully.
By the way, big miners like the power industries and data hubs may focus on purchasing sprees. This becomes possible at the very moment when the margin breaks and trading activities become more complex.
In the U.S. and Europe, the trend can be observed among energy producers. Some small mines can integrate waste management with mining to get the maximum out of stranded energy.
Cheap power and ESG
Low-cost power has always been an important condition of efficient crypto mining. The growing number of environmental concerns have determined the need for renewable sources of energy. This is the only way for crypto mining to stay competitive.
Due to the ESG (Environmental, Social, and Governance) compliance, a lot of mining companies proceed with carbon-neutral or renewable-powered mining. By the end of 2021, the Bitcoin Mining Council reported that 58% of the total energy applied in crypto mining was sustainable.
With the use of clean energy, carbon neutrality becomes a key to covering the worldwide electricity shortage. Of course, this initiative shouldn’t be limited to environmentally friendly mining. The “social” nature of ESG shouldn’t be ignored either. As a result, a positive impact on miners’ return on investment will be achieved.
Fast money versus value investors
Many people are turning to the crypto mining sector due to the involvement of the capital markets and high margins. The mining sector has faced a slew of IPOs and support from institutional investors. In the nearest future, the capital markets will keep deploying the capital in bitcoin and miners. Eventually, this trend will turn out to be old.
According to bitcoin miner hosting report, stock markets will keep their capital in bitcoin and miners. The original sponsorship (pre-IPO) is going to be simple for such traders. The reason for this happens to be a desire for immediate changes. The viewpoint for value investors remains filled with uncertainties.
Supply chain: The big uncertainty
Crypto mining is dependent on the supply chain which is currently experiencing some serious problems. Why is this the case? Covid-19 affected the chip shortage all over the world. The geopolitical tensions between the U.S. and China made the situation even worse.
In 2021, mining rig orders could be processed within six weeks. In 2022, only large orders are accepted for further processing. As soon as chip manufacturers can generate the normal supply, the problem will get solved. The larger industries will be able to enter the industry smoothly by referring to bitcoin miners.
New technologies in mining
Miner hosting services become significant tools for miners. They offer new innovative technologies that maximize the overall profit for individual miners and private mining companies. For example, immersion cooling is widely used to increase performance and decrease the cost of mining without purchasing additional computers. It also boosts the productivity of the mining machines and the entire facility. Riot Blockchain, the top bitcoin miners, has already expressed its intention to enhance its mining hashrate up to 50% through immersion-cooling technology.
The year 2021 was a rough ride for the crypto market. With the growing crypto technologies, mining will most likely demonstrate some transformation in 2022. Thousands of miners from all over the world are already enjoying the trends in mining.
Will crypto mining with Bitcoin bring great changes to the world? Let’s see how things will move in 2022.