A bearish market, electricity costs, and other struggles with the supply could minimize the hash rate. They expect that the Bitcoin hash rate will reach new highs of 280 EH/s by January 2023.
A couple of months ago, people used to think that by the end of the year the Bitcoin (BTC) hash rate would surpass 320 EH/s due to the high participation of miners in the platform. But the bear market changed everything again with the rise in energy costs and flaws regarding the supply chains, situations that forced the projections to suffer a new cycle of corrections.
According to Hashrate Index, a Bitcoin mining analytics firm, the milestone of computing power greater than 300 EH/s looks further away every day. Mining income margins get weaker and weaker, and bitcoin price crumbles down to the $30,000 range.
The firm also highlights that after approaching the historical maximum of 229 EH/s a few days ago, the Bitcoin hash rate crumbled at least 10% to return to 207 EH/s in a weekly moving standard. According to experts, this situation happened even though, so far in 2022, the hash rate reached a peak registered at 19%.
Hashrate Index representatives indicated that the hash price is also falling. This figure is the amount miners receive for each tera hash introduced in the network. It crashed by 50% in 2022 to return to 2020 levels due to the pandemic.
The group also opened up about the difficulty of mining, which reached stages never experienced before. This situation could slow down the expansion of transaction processing power on the Bitcoin platform, according to Hashrate Index experts.
About the Damage the Miners Cause
The firm sustained that the increase in gas prices, renewable energy, and the dismantling of the minimum energy demand caused a rise in the electricity markets of the United States of America and the European region, to the damage of mining activity, which exists focused on electrical energy consumption.
While they maintain that Bitcoin miners can work under the energy crisis, there are others who “are at risk of going under as the hash price continues to crash down.”
Regarding supply chains, they highlighted that these are still recovering from the harmful impact of COVID-19 on logistics and supply/demand.
The Most Prominent Mining Entities will not Grow, and the ROI will Lengthen
Hashrate Index points out that the large mining companies will not experience growth so fast this year because of this particular situation. In addition, they suggested that the return on investment (ROI) could double for miners whose activities started last year. If the ROI had a launch schedule planned for 2022 or 2023, it would now get postponed to 2024 or 2025.
According to the firm, this results from carrying out deals using 2021 profitability, 2021 interest rates, and 2021 ROI models.
Specialists highlighted that the increase in interest rates in the United States of America, registered at 1%, makes it harder for miners to support their ASICs or systems the same way they did the last year.
By: Jenson Nuñez
