Analysts See Slower Bitcoin Hashrate Growth in 2022 Amid Market Correction
The Bitcoin (BTC) network’s hashrate – or computing power that goes into mining new coins – could reach 327 EH/s by the end of the year, a research note from the crypto-focused financial services firm BitOoda has predicted, after the firm cut an earlier forecast for the year.
The latest forecast from BitOoda represents a massive rise in hashpower from last year, but is still lower than an earlier forecast from the same firm of 334 EH/s, the note revealed, while admitting that the hashpower for year-end 2021 also came in below its forecast.
“The year end 2021 Hashrate came in at 174 EH/s, below our previous estimate of 198 EH/s. The situation in Kazakhstan further pressures near term Hashrate. The longer lead time site development schedules in North America remain intact,” the report said.
The report stated that the long-term hashrate on the Bitcoin network is dependent on bitcoin’s market price, also noting that “other constraints” apply as well in the short term. Among these constraints are the availability of capital and mining rigs, price and availability of 240V single phase power, and “a supportive price environment that keeps rigs operational.”
As of Monday this week, the 7-day average of the Bitcoin network’s hashrate stood at 189.84 EH/s, data from BitInfoCharts shows.
The view that hashrate will continue to rise this year is also shared by the digital asset financial services firm CoinShares, which wrote in its Digital Asset Outlook for 2022 that all signs are pointing higher “barring any large-scale crackdowns by jurisdictions hosting large shares of the Bitcoin mining network.”
“If bitcoin prices keep rising and ASICs (mining hardware) remain available, hashrate growth will likely continue unabated throughout the
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