Bitcoin mining has been one of the most talked-about topics in the last few months. In 2021, the mining industry has changed significantly. Some countries saw a lack in mining rigs and chipsets. Some saw strict regulations against miners and bitcoin mining. At the same time, others saw flourishing growth and supply in the mining rigs and slackening of regulations. Things changed drastically in the digital currency world, and it is likely to see some significant changes in 2022.
As the number of miners is growing, the margin gained in bitcoin mining has reduced quite a lot. However, it is balanced that the price of bitcoin increased majorly, and the trader’s and miners’ sales saw some great hikes in their profits over time.
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As 2020 is near, let’s see some trends that will take over the bitcoin mining industry.
- Hashrate hike
The Hashrate of bitcoin is one of the most crucial factors that decide the safety and security of the blockchain. It will likely decide how difficult it will be to mine new coins and verify new blocks in the network. As more miners join the network and more computers work across the globe, with new computational efficiency, the hash rate will show an upward jump. More hash rate means less chance of any malicious miner cracking the networks and entering the same. As per many experts, it is said that the hash rate will get doubled in 2022.
- Decreasing margin
As the hash rate increases and secures the network significantly, there is a negative impact on the market. More miners mean less margin. This will affect the profits earned by the miner. Big mining companies with lots of resources, high-end and highly efficient mining rigs can reduce the cost and thus balance the profits. But, this can be an issue for those with fewer resources, old rigs, and new entrants in the mining network.
- Mergers and acquisitions
Another effect of lowered margin increased hash rate and decreased profits are possible M&As. Bigger mining companies, global companies, data centers, etc., will play big and eat up the smaller miners in the market.
- Energy-efficient mining
As the environmental, social, and governance compliances are being put up by most states and places across the world, the need to secure green energy is crucial next year. To reduce the energy consumed by miners, many governments have put up restrictions. Therefore, one will see a serious hike in demand for renewable energy sources like solar, wind, nuclear, etc.
- Supply chain shortage of chips
Chipsets for the mining rigs are the most crucial pillar in running a mining company. Without the chip in place, the computers can not mine bitcoin. But, in 2021, due to the global pandemic and slowing down of the supply chain, there is a shortage of chips in many countries. The manufacturers are unable to meet the demand due to a semiconductor shortage. Many manufacturers say that the shortage of chipsets will stretch up to 2023, as it will take time for the supply chain to see some normalcy.
Bitcoin mining is an industry that is both profitable and uncertain in current times. It all depends on who has the right resources, best practices, and industry knowledge to win.