A hard year for public miners

A hard year for public miners

The mining data side Hashrate Index has published a report that reflects the condition of the Bitcoin mining industry in 2022.

The analysis examines the severe decline in mining redematability in 2022 compared to 2021 in the middle of falling Bitcoin prices and an increasing hash rate.

The hardest bear market

Pro die test report The hash price of Bitcoin published on Wednesday reached an all-time low of $ 55.94/ph/day. The hash price is a measure of the miners used to dollar for every unit of Hashing's performance.

The annual average price for Hash in 2022 was $ 123.88/pH/day, a severe decline compared to the average of $ 314.61/pH in 2021. The strong decline was largely caused by the Bitcoin Baisse, but also caused by an average increase in energy costs by 16 % in 2022 the United States.

"35 states have lower average industrial prices than the current BREAK-Even power price of S19 per $ 92 per mwh," explained the report.

increasing energy costs also ruined the costs for hosting services. While an "reasonable contract" could have offered prices of $ 0.05 to $ 0.06/kWh before 2022, prices are now "not unusual" by $ 0.08 to $ 0.09/kWh. "Everything below $ 0.075/kWh is considered" bargains "in view of the market conditions," the report continued.

Meanwhile, the trade in ASICS-the specialized machines with which Bitcoin is efficiently broken down-has decreased. Rigs of all new, medium and old generations each recorded a decline in returns by over 80 %, which led to the premium for the S19 XP rose during the year.

public miner suffer

Public Bitcoin miner suffered great losses in this environment, with most pure Bitcoin mining shares collapsed by over 90 % in 2022. One of the world's largest miners-Core Scientific (Corz)-fell by 99 %, as worrying rumors about the solvency of the company, culminating The mine share with the second worst performance was Greenidge generation (Gree), which fell by 98 % because it had difficulty paying back high-interest debts that were secured with its own ASIC machines.

Other miners like Iris Energy also suffered from the burden of such loans, for which Iris was forced slash

Public miners were suggested to expand as soon as possible during the 2021 bull market, which caused them to further expand their hashrate dominance from 14 % to 19 %.

in 2022 the total haash rate of Bitcoin increased by a further 41 %. This was also largely promoted by public miners who increased their accumulated Hashrates by 59 % compared to 19 % with their private colleagues.

finally was a year in 2022, in which Bitcoin mining became "the only proof-of-work game in the city". His only big rival, Ethereum, changed its consensus mechanism in Proof of Stake in mid -September and thus ended the mining industry from Ethereum with an upgrade.

Despite the three and a half months of Ethereum without proof of work, the miners in the network still generated almost as much sales last year as Bitcoin miner ($ 8.87 billion compared to $ 9.55 billion). Today Ethereum-Miner were replaced by staking validators, the new ETH produced at a price much slower as a miner before the merger.

"Income of staking validists are a shadow of mining income," the report says.

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