Despite pricing issues and a spike in Bitcoin mining rules, the BTC hash rate continues to set new records every week. In January 2022, the average hash rate surpassed 183 Exahash, the highest number ever recorded. After China launched a crackdown on digital asset mining in the region, the BTC network experienced a faster-than-expected resurgence in the mining industry.
Overall, the hash rate dropped by much to 54% in May 2021. However, due to the mining-friendly policies of the relevant countries and the availability of cheap power, the world’s major Bitcoin mining businesses have relocated to other parts of the world. With mining payouts decreasing due to Bitcoin halving events, increased competition, and energy concerns, every individual interested in this industry has one important question: is BTC mining still profitable?
Analysts say it is, and they have good data to back up their statements. According to Bitfinex CTO Paolo Ardoino, huge institutions will become increasingly interested in Bitcoin mining in the next months. “I anticipate that the bitcoin hash rate will continue to climb as competition in the bitcoin mining industry grows.” In reality, bitcoin mining demonstrates a high level of anti-fragility. Notably, the China ban in the summer of 2021 highlighted the sector’s resiliency. Businesses will continue to be drawn to the area, which is a testament to the sector’s overall profitability,” Ardoino added.
Cost of Electricity
According to Maria Stankevich, Chief Business Development Officer at EXMO UK, the cost of energy plays an important role in the profitability of Bitcoin mining, and the reason why leading mining players are moving to locations such as the US and Europe is that the cost of mining electricity is very low in the mentioned regions.
“Bitcoin mining will continue to be lucrative in 2022.” If we’re going to go into the specifics, let’s take a look at the many facets of mining that should be considered while discussing its profitability. Cost of energy, power costs vary greatly from one nation to the next. Russia, for example, has relatively cheap power prices in comparison to certain locations (such as Siberia), thus it charges a reduced price for industrial electricity to stimulate economic growth. This…