Noti Hash is CriptoNoticias’ Bitcoin mining newsletter. It is published on our website every two weeks, being today, Thursday, March 24, 2022, the eighteenth edition to be published, at block 728,750.
Bitcoin mining has many dimensions and situations to consider in order to make it a profitable and sustainable activity, and within these circumstances there are moments of setbacks and moments of growth and opportunities.
In this edition of Noti Hash, we will summarize the news that leaves this hypothesis for granted, compiling both the events that favor Bitcoin miners, and those that do not (although many see the positive side of the crises).
2022: A year of high competition for Bitcoin miners
The notion of high competitiveness in Bitcoin mining is present in studies and projections that point to several facts: the hash rate or hashrate of Bitcoin would grow a 60% at the end of 2022; more high-end mining rigs will hit the market (such as Bitmain’s new Antminer); and mining pools they could improve their services and become more efficient (you can check out some of the best mining pools here).
In addition, the possible increase in the price of Bitcoin could benefit the investments and savings of miners according to this study, CriptoNoticias reported.
Despite the high competitiveness in the sector, windows are still opening for new players who want to invest in Bitcoin mining. We recently reported that mining equipment prices lead 8 weeks backwardsmaking it possible for smaller investors to buy their first equipment and enter this industry.
Taking into account that the block reward is reduced by mining 210,000 blocks, approximately every 4 years, miners have incentives to take advantage of each investment opportunity.
To this we could add that transaction fees have also been reduced. In fact, right now they are at record lows. As the graph below shows, the average commission rate tops out at just 30 satoshis per byte (sats/vbyte).
Accustomed to dealing with regulators, Bitcoin miners adjust
Governments and regulators continue to restrict Bitcoin mining, leaving miners with no choice but to adapt.
In Venezuela, after a court ordered the return of some confiscated equipment, the order was reversed until the miners prove that they have the proper documentation to carry out this activity in the country.
Despite the strict regulation, CriptoNoticias spoke with some miners who told us that mining Bitcoin in Venezuela is and will continue to be a profitable activity.
In Kazakhstan, one of the countries that concentrated Bitcoin mining, miners disconnect their equipment and cease operations. As reported, more than 100 mining farms in the country closed their doors.
While Kazakhstan went through a tense political situation earlier this year that left miners offline, having a negative impact on Bitcoin hashrate, this time the processing power connected to the network has not been affected.
Both the hashrate and the difficulty have not stopped growing since last year:
Mining from other networks:
Picture of the Week:
An American engineer shows off a miner immersed in coolant, allowing you to mine Bitcoin at home by dissipating heat and isolating equipment sound.