Analysis shows that even though the mining industry saw major pressure this year, the network hashrate still grew immensely.
Hashrate Index has released its 2022 Bitcoin Mining Year In Review, an extensive report on the mining industry and markets surrounding it.
2022 was a difficult year for Bitcoin mining, with the bear market leading to a hashprice all-time low, bankruptcies and losses for miners. Despite this, hash rate still grew 41%, and Bitcoin mining still generated nearly double the rewards compared to the previous three years. The report covers all of these topics and more in detail.
One of the main focuses of the report is the growth of hash rate.
Although the year involved many challenges to the mining industry, from an all-time low hashprice, to several public miner bankruptcies and even an arctic cyclone at the end of the year to top things off, hash rate still climbed, and at a much greater rate than 2021, which was stunted by China’s mining ban.
The report also describes a large decline in hashprice, with the high of the year being recorded on January 1 at $246.86/PH/day and only declining from there. Indeed, the year saw an all-time low in hashprice at $55.94/PH/day.
One factor that played into this, according to the report, is increasing industrial electricity rates across the country. But many states have been insulated from this rise in cost through abundant energy production sources like Washington’s hydropower, or other states’ access to natural gas, leading to certain states retaining viable mining operations. The report also notes that “power strategies can take many forms, but a common theme is that miners exploit the unique low-consequence-interruptibility of the bitcoin mining process by adjusting their electricity consumption based on market signals.” This was on display most recently when Texas miners turned off their operations in order to return energy supply to the grid, while getting paid nearly as much as they would have had they continued mining.
Hashrate Index also highlighted the increase in hosting costs, which prior to 2022, hovered around $0.05-$0.06/kWh. But now, “Anything below $0.075/kWh is considered “a steal” given market conditions.”
Suffering public miners were also a focal point in the analysis.
With the bull market in full swing, public bitcoin miners made big bets with their equipment purchases and expansionary moves. But the bear market hit some larger performers particularly hard, with behemoths like Core Scientific taking losses of nearly 100% — the company is currently undergoing Chapter 11 bankruptcy procedures. These were difficult-to-swallow pills for the market, but public miners did expand in terms of their hash rate dominance, ending the year at 19%.
Overall, the report signified Bitcoin’s resilience in the face of various major headwinds. Macroeconomic pressures, environmental anomalies and major public mining stocks tumbling more than 90% still couldn’t hamper major growth in network hash rate. Apparently, even such horrendous extraneous conditions as those on display in 2022 cannot temper the growth of the Bitcoin mining industry.
As Bitcoin enters the mainstream conversation, it is becoming increasingly common for politicians to embrace or disparage the technology.As Bitcoin moves into its adolescence, many people from all walks of life, from all across the world may be pondering the question: Is Bitcoin mainstream? Is it in the process of becoming mainstream? Or is it something…
In Texas, the legacy of mineral rights ownership is a narrative etched into the very bedrock of state history. Passed down through generations like a cherished heirloom, the ownership of mineral rights is more than a legal claim; it is a cultural emblem, a symbol of resilience, and a precious legacy. The wealth and prosperity
Grayscale Investments, one of the world’s leading digital asset management companies, has reported a new milestone. According to a quarterly report, the New York–based firm announced inflows of $254.9 million in net investments, a new record for a single quarter that tripled the $85 million it accrued in the preceding quarter. Michael Sonnenshein, the managing…
The proof is in the pudding when it comes to Bitcoin’s proof-of-work mechanism versus a proof-of-stake consensus mechanism debate.There have been countless arguments surrounding both the proof-of-work (PoW) and proof-of-stake (PoS) as a means of gaining consensus on a blockchain network. Many people have been asking themselves which one is better, and why? In this…
Despite inflation being most commonly cited as the reason for Bitcoin’s price appreciation, there are other factors at play.What do Peter Schiff, gold bugs, the financial media and many bitcoiners have in common? It is the shared belief that "money printing" is to blame for many, if not all, of the increases in price that…
South Korean cryptocurrency exchange GOPAX has become the first blockchain company to attain K-ISMS certification, the official standard in Korea for information security management systems. This is an important sign of approval by the Korean government regarding GOPAX’s cybersecurity infrastructure. K-ISMS certification is an official domestic standard regarding the establishment, management and operation of information…
On the latest episode of Season 2 of Distributed Dialogues, the hosts took a deep dive into the state of political repression in the People’s Republic of China. Interviewing experts and dissidents at the Oslo Freedom Festival, this thorough examination of Chinese political life combines insight and research with the real, lived experiences of people…
This piece is an entirely and deeply serious parody. Bitcoin mines aren’t just thirsty, it turns out they’re starving for air, too. The air consumption tied to a single Bitcoin transaction, on average, could be enough for a DINK couple to breathe for an entire year, according to a new analysis by Andrew de Breeze. Bitcoin
The browser extension, once linked to a ZEBEDEE account, pays users for watching advertisements in redeemable points which can be exchanged for bitcoin.ZEBEDEE partners with Slice to pay users in bitcoin for surfing the web.Slice is an advertisement startup company that built an extension which awards points for watching ads. The points can be redeemed…