The overall crypto mining macro environment had the Bitcoin mining craze coming to a sudden end in 2022. Reasons stretch from ESG concerns to regulatory hiccups and more. However, can this tale shift as BTC miners show affection towards their undertakings?
Fighting with Faith
Bitcoin miners cheered through 2021. All mining activities yielded profits as BTC’s price surged quicker than the platform’s hashrate. Nevertheless, 2022 witnessed some hiccups during regulatory limits following ESG concerns.
Nevertheless, the latest study confirmed otherwise. Considering the returns from BTC mining, the industry was pushing to ensure a more stable energy mix. A voluntary global miner forum BMC (Bitcoin Mining Council), shared insights to back this cause. MBC’s second-quarter report stated that the global BTC mining platform boasted a 59.5% sustainable power mix.
What’s its significance, you may ask? The BMC comprised 45 mining firms from five nations representing around 50.5% of the BTC hashrate. Meanwhile, introducing changes here might break or make the stream.
Messari analysis shows a 10.9% mini-surge in the BTC platform’s sustainable energy mix within the last 18 months. That suggested that the platform maintained the correct direction. Nevertheless, can this improve? YES. But that will emerge if miners adopt carbon-free power sources.
Also read:The BTC mining hashrate soared sharply recently to around 249 EH/s – another ATH – backing that narrative. That confirmed that miners rejoined the platform despite the past exodus. That and the discussed sustainable causes might bring another era for Bitcoin and its mining activity.
Moreover, data indicated that public BTC mining firms plan to increase their hashrate by about 50% by 2022 end. That would see the total hashrate by the miners hitting 80.7 EH/s by 2022-end (if expansions succeed).
No Further Hiccups?
Probably not. Except for deteriorated miner revenue cases. Q4 2021 saw miner revenue peaking at $4.8 billion. However, it has been plummeting as Bitcoin prices have declined since. Quarterly miner revenue in 2022 Q1 and 2022 Q2 plunged by 28% & 22%, respectively. If BTC price stays range-bound in Q4, miner revenue could extend the downside trend, considering higher energy costs.
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