Bitcoin mining has been developing at an exceptional rate of growth. In fact, 2021 was one of the most industry-altering years for mining. Through Chinese regulatory crackdowns, matched with the global chip shortage, American developers and miners have developed key technology and approaches to Bitcoin mining.
As a result, 2022 and 2023 look to be interesting years for Bitcoin mining. New miners are coming into the industry, but there is a delay in new mining rigs. Investing in Bitcoin mining is changing too. Needless to say, there are a lot of interesting approaches to Bitcoin mining this year.
Greg Rogowski has led the Mining City platform since it launched in 2018. Mining City is a platform that provides mining plans, giving users access to hash power and mining rewards. Hashpower is the computing power needed to generate cryptocurrencies.
Mining City users can buy crypto mining plans that give them access to hash power and mining rewards. Hashpower provided by Mining City is used to mine Bitcoin (BTC) and other cryptocurrencies.
Greg is in charge of events organized by Mining City and is always on top of all the latest blockchain news.
Greg Rogowski began his career in the media industry. After graduating from Warsaw University with a degree in Marketing & Neophilology, he worked for prominent European media brands such as Radio Zet, Agora and TVN. He also worked as a Brand Manager in Ubisoft (the game manufacturer) and as National Marketing Director at TVeez in Panama. Altogether he has more than fourteen years of experience in management and marketing.
The combination of Greg’s professional expertise and a fascination with blockchain technology led him to start mining Bitcoin. His initial curiosity set him on a path to eventually developing one of the world’s largest crypto mining communities - Mining City. This innovative and inclusive crypto mining platform brings together people from all over the world who want to combine their strength to mine Proof of Work cryptocurrencies. Since the project launched, he has travelled the world helping to spread the world about the merits of cryptocurrencies.
Greg has always been interested in science and art, which complement his creative and innovative business approach where abstract and lateral thinking is required. He shares his genuine interest in classical music and cars with enthusiasm for blockchain and cryptocurrencies in his private life. He is a native Polish speaker but he also speaks English fluently as well as intermediate French and Russian.
We recently spoke to Greg Rogowski to learn a little more about seven top trends in Bitcoin mining:
- Hashrate Doubling
Experts unanimously agree that the Bitcoin hashrate will significantly increase over the next year. Some experts even estimate it doubling because more miners are joining the network. More specifically, industry participants expect the hash rate to reach the 300 to 350 exahash/second range by the end of 2022.
In case you are unfamiliar, the hashrate measures computational resources that are required to conduct mining activities and secure the blockchain. Whenever evaluating the competition, the hashrate needs to be evaluated. If the hash rate is doubling, it means that the competition is doubling with increased computational resources.
As the hash rate increases so much, it is expected for the difficulty to increase as well because there are so many new and established miners competing against one another.
- Margin Compression
Because the hashrate is expected to double and the difficulty to increase, the miners will try harder to stay within a profitable range, assuming that there are no major Bitcoin price fluctuations. So, companies will try to keep their personal costs low and have efficient machines to survive the competition.
Although all minors will be affected, new ones will be affected the most by smaller margins. After all, power and infrastructures are the top considerations for succeeding in this industry. Because new miners have less power and infrastructure, they have increased competition.
- Energy-Efficient Technology
Due to the margin compression, more miners are caring about energy-efficient technology than ever before. Using energy-efficient technology is just one way to save some money on resources. Especially since Bitcoin mining rigs require so much energy, energy-efficient miners can save a lot.
Experts predict that miners will continue leaning towards renewable-powered mining and carbon-neutral mining. Not only is this better for environmental and social purposes, but it keeps prices down.
In fact, miners are already looking to use sustainable power sources, such as nuclear, hydro, wind, and solar. As much as 58% of crypto’s energy during the 2021 third quarter was from sustainable sources. That is an increase of 3% from the second quarter, and this number is only going up, especially in North America.
- More Mergers and Acquisitions
From the increased competition, there will be winners and losers. It is an unavoidable fact. As a result, there will be a lot more mergers and acquisitions. Large, capitalized miners will acquire smaller miners, and smaller monitors will agree to keep up.
Some experts wonder if there will be more mergers and acquisitions not just within the mining industry, but within other large industries. For example, it is possible for data centers and power companies to begin buying mining rigs to get into the industry. This is already a trend in countries like Russia, where energy producers are taking advantage of mining.
- Revamped Rigs
Last year, China enforced a regulatory crackdown on Bitcoin mining, forcing many rigs to be abandoned. At the same time, the chip shortage means that new rigs are not being produced. North American miners have taken advantage of this unique situation by picking up used rigs from China so that they can still start new mining operations, even if they don’t have a new rig.
This is the first time in Bitcoin mining history that rigs are being revamped at such a rapid rate. In other words, the secondhand rig market is huge in 2022. The rigs might not have the most up-to-date technology, but they help new miners get into the game by saving on the rigs.
- Solving Supply Chain Problems
The supply chain has been a real issue for Bitcoin mining in 2021, and it’s expected to continue throughout 2022. Some experts even believe that it will continue well into 2023. However, miners now anticipate this problem, which means more minds will be working to help solve supply chain problems.
- Advanced Mining Technology
The future of Bitcoin mining is in the technology. As more players come into the game, more technology will be introduced so that the Bitcoin mining operation is as effective as possible. Many miners are looking toward using better computers with innovative technologies to maximize earnings.
As we have already covered, miners are looking to incorporate more energy-efficient technology into their rigs. Others are looking to use technology like immersion cooling to lower costs while boosting performance without the need for additional computers.
Through advanced mining technology, miners hope to create the most efficient mining rig possible so that they can save on expenses while increasing profits.
Final Thoughts
Bitcoin mining has changed rapidly over the last three years, and it will continue to change in 2022. Although it is changing, it certainly is not going anywhere and changing for the better. As the trends for 2022 show, Bitcoin mining is continuing to evolve.
Most of the Bitcoin mining trends are related to the increase of miners in the industry with the supply chain issues. Because more players will be in the game, there will be more competition, resulting in hashrate doubling, margin compression, and other high competition consequences.
Although there are some serious downsides to the current market environment, there are some benefits as well. For the first time ever, revamped rigs are being used, and energy-efficient and advanced technology are being explored further. Needless to say, these trends show that Bitcoin mining is only advancing, even in the difficult environment of 2022.
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