Mining

# Bitcoin Mining: Will It Remain Profitable in 2022?

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December 10, 2021 May 5, 2022

The crypto mining industry (in particular, the Bitcoin mining sector) has witnessed significant ups and down over the past week, thus adding more uncertainty for crypto miners. The given fact poses a set of important questions like “Is it worth to mine Bitcoins?”, “Will the BTC network grow?” and “What are the future opportunities of Bitcoin mining?”. Let us review the current situation with the cryptocurrency mining, is it worth to mine Bitcoins and its future perspectives in the long and short perspectives.

With reference to the BitInfoCharts statistics generator, the profitability of Bitcoin mining and generation of newly minted coins have been declining over the past month. This was largely caused by the descending trend in the Bitcoin currency rate, which on November 10 set a historical all-time-high (ATH) at $69K per one Bitcoin worth, and on December 4, the Bitcoin cost dropped to a local minimum of $42K (by nearly 40% worth). At the date of writing, the first cryptocurrency is worth around $50K according to CoinMarketCap price generator. Throughout Aug., Sept., Oct. and Nov. months, the Bitcoin network difficulty had been increasing like frequency generator; henceforth, despite falling prices in the crypto markets and mining pool generator in the last few days, the overall pattern suggests that this pullback is a healthy profit-taking and deleveraging event in the long run.

Nonetheless, the hashrate of the Bitcoin network continues to grow in tandem with mining generator pools. At the moment, it is around 185 EH/s, although in July it dropped to 68 EH/s. If Bitcoin ledger goes into a long-term correction, the hashrate growth to 300 EH/s by the end of the consecutive year will still continue, as it is due to the expected connection to the network of the latest Bitcoin mining equipment and generator pools, which has already been contracted to mine Bitcoins and will be included in the blockchain network generator in almost any case. In the event of a further decrease in the Bitcoin worth, outdated Bitcoin mining computer models that can operate via BTC generator pools now due to high profitability will be forced to shut down. New sales of miner computers will slow down, and prices will begin to decline regardless of the policies introduced by giant BTC generator pools. That is how it works.

Presently, the profitability of mining Bitcoins and hashrate generation remain high enough that even rather old Bitcoin mining ASICs can work and mine Bitcoins with generator pools. At the same time, at the end of this year and for 2022 onwards, large amounts (worth millions of dollars or equivalent in Bitcoins) of high energy mining equipment have already been contracted and prepaid.

In line with this, it is worth to point out that the unprecedented influx of crypto mining (especially, Bitcoin mining) hardware from China to Kazakhstan led to a sharp increase in electricity consumption and generator demands, for which the country’s power system was not ready. As a result, these operations and process caused temporary difficulties in the power system in general and total outages of miners of Bitcoins in particular. For what it is worth, this chain of events has led to a decrease in the complexity of the Bitcoin network and transactions, which occurred at the end of November. Many crypto miners (especially those involved in mining Bitcoins and generator pools) have already decided to move their facilities and works to the United States of America, Russian Federation, Canada, while the other part of generator pools will wait for the resolution of the situation in Kazakhstan

In an effort to explain the current situation with Bitcoin mining and if it worth to mine Bitcoins or not, the drop in Bitcoin mining difficulty does not mean a decrease in income (earned profit) or pool generator; on the contrary, less competition in the network leads to the situation when the generator income of the remaining participants increases and only a prolonged correction in the market can have a chilling effect for miners of Bitcoins.

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