Bitcoin’s hashrate is expected to thrive in 2022 according to the latest reports that we have in today’s BTC news.
December 2021 saw Bitcoin’s hashrate recover from the harsh effects of the ban in China and the mining activity in the region. This year, Bitcoin’s hashrate is expected to thrive and reach an all-time high of 208 million EH/s on January 1st.
Bitcoin’s hashrate is a measure of the computing power that is used to verify and process transactions in the network and to mine new coins. In simple words, the hashrate represents a number of miners that are involved in the network at a time so it is seen as related to blockchain security which means, more hashrate-more security. It is often said that the hashrate levels follow the price because when the BTC reward is higher, more miners are attracted to the network.
A report from Arcane Research shows that the estimated speed of mining reached an all-time high which surpassed the rates of May 2021. The hashrate is expected to increase because the largest mining farms are investing in new machines. This could turn into Bitcoin’s new bullish movement as the upward momentum in the value of hashrate metrics shows strong profitability of BTC mining and could drive new miners into the blockchain.
The mining industry was affected heavily last year after China banned all crypto mining operations. The country represented over 70% of the crypto mining activity worldwide and the crackdown forced the China hashrate to drop to zero. Chinese miners started a search for new places to conduct crypto mining activities and at low energy costs. Month after month, the industry climbed back as they resettled and the hashrate started retracing to its all-time high.
When the BTC hashrate crashed after China’s ban, there was fear of the network that will no longer be secure. However, the digital coin saw lower hashrates of 9.8 million terahashes per second in 2017 whcih was a drop to around 128 million terahashes per second in 2021 that wasn’t really endangering BTC or its safety. Back in July 2021, mining companies were thanking the China crackdown for a 54% drop in BTC hashrate as the miners were connected to the network and are expected to see bigger profits. Bitcoin mining started to explode in the US in 2021 and there was a huge number of new investmetns from venture capital. Now the BTC hashrate is in a good position and it is expected to continue growing since the mining companies purchased huge amounts of machinery to be delivered this year.
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