Global Bitcoin Mining Hash Rate Will Increase 'Aggressively'? - Analysis!

Global Bitcoin Mining Hash Rate Will Increase 'Aggressively'? - Analysis!

2022-01-31 | Mike Hallen

Global Bitcoin Mining Hash Rate Will Increase 'Aggressively'? - Analysis!

Bitcoin (BTC) appears to be on everybody's psyche in recent times, as the price of BTC recently took a strange bearish twist this month. Bitcoin fell to six-month lows on January 21, 2022, falling under $40,000 for the earliest time in months.

Whilst others worried, others in the business reminded that the Bitcoin network has become provably tougher than ever. The Bitcoin network is expanding, as hash rate numbers for BTC keep making record highs this month. On January 22, for example, the BTC network reached an all-time high of 26.643 trillion with an average hash rate of 190.71 exahash per second (EH/s).

The hash rate will rise more, which is a positive thing

According to Samir Tabar, chief strategy officer at Bit Digital, a publicly-traded Bitcoin miner, the BTC hash rate relates to the quantity of computing power being made a contribution to the network at any particular time. Tabar emphasized that a greater hash rate corresponds to a good hash rate when it pertains to Bitcoin mining. "The more computer power that goes into network maintenance, the more secure it would be as well as the more transactions it'll be capable of managing," Tabar said.

As a result, even if the price of BTC is down, the current hash rate estimates for Bitcoin are quite significant. The CEO of cryptocurrency mining startup Argo Blockchain, Peter Wall, was not shocked to see the BTC hash rate reach near 200 EH/s.

Feinstein stated that, despite the fact that the BTC network has reached all-time highs in regards to EH/s, the network is currently the most effective and durable it has ever been due to enormous advancements in miner chip technology and geographic diversification away from China. Feinstein went on to say that this data is essential because it indicates how much energy each terahash consumes, which is commonly expressed by a measure known as Jules/terahash. He mentioned that this ratio has decreased significantly over the last few years, indicating a significant increase in mining energy efficiency.

Will network expansion be supported by infrastructure?

Michael Levitt, co-creator, chairman, and CEO of Core Scientific, recently said that the BTC worldwide hash rate will keep climbing at a fast rate.

However, Levitt stated that this expansion is contingent on the future price of Bitcoin as well as the performance of the infrastructure that is now being created.

According to statistics from the Cambridge Bitcoin Electricity Consumption Index, North America has become one of the global highest Bitcoin mining centers, with the United States accounting for 35% of the average monthly BTC hash rate and Canada accounting for 10%. Wall said that North America has risen to prominence as a worldwide Bitcoin mining hotspot for a variety of reasons. This is owing to the region's cryptocurrency-friendly jurisdiction, stable regulatory environment, pro-innovation character, and, most significantly, access to the most critical item miners require — low-cost, ideally renewable, electricity.

As reported earlier, the Bitcoin mining business in Texas used 500 to 1,000 megawatts (MW) of power in November 2021. According to the Electric Reliability Council of Texas, demand might more than fivefold by 2023, as well as an extra 3,000 to 5,000 MW is anticipated.

Argo Blockchain is showing the usage of renewable energy by taking electricity from a local substation. Wall claims that the mining firm has been carbon-negative since 2020. This is significant because Tabar stated that the cryptocurrency mining industry is actively facing a major environmental, social, as well as governance motion.

The Benefits of Going Public

One other trend that the Bitcoin mining industry is probable to see this year is the hurry of mining firms going public.

-Lately, Texas-based Bitcoin mining corporation Rhodium declared proposals to offer 7.69 million shares in an initial public offering at a price of $12–$14 per share (IPO).

Core Scientific went public on January 20 after a SPAC transaction with Power & Digital Infrastructure Acquisition. While Core Scientific's stock has subsequently plummeted, Feinstein stated that every publicly traded cryptocurrency business, such as Coinbase, Galaxy Digital, as well as others, adds institutional investment options to the US market.

According to Levitt, Bitcoin miners going public provides a variety of benefits, notably improved access to finance as well as publicly listed shares that can be used to acquire and expand other firms. Furthermore, Levitt stated that having a public presence is beneficial for discussions in and surrounding the financial services business.

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